Money Talks

Money is quite a complex subject and sometimes a difficult topic. Nevertheless, especially in the fast-moving sports business, it is important to keep finances in check and to invest in the future.

In the sports business, many aspects are uncertain and unreliable. A bad injury or no luck in negotiations with clubs can put an athlete into a rough situation, not just emotionally but also financially. Therefore, it is a necessity to budget the income smartly. An emergency fund can be crucial in a financially tough time.

We provide some basic financial knowledge to make you feel more comfortable with your finances

How To Budget Your Income

Figuring out how to manage your money can be intimidating. Not only do you need to organize, but you also have to make difficult decisions about how to spend your cash. Relying on the experiences of others can help only so much because your income and expenses are unique.

There is a simple way to get a good grip on your budget. Just follow the so-called 50-20-30 Rule.

Up to 50% of your after-tax income should be used for obligations and needs that you must have or must do, like rent, utilities, and groceries.
Up to 20% of your after-tax income should be used for savings, investment, and debt repayment.
Up to 30% of your after-tax income should be used for everything else that you want to buy but don’t necessarily need.

Living expenses & essentials: 50%
Savings, investments, debt repayment: 20%
Flexible spending: 30%

15 Personal Finance Tips

For Beginners

Stick to a budget

Budgeting is the first step to make. It is important to have an overview of where your money goes. Budgeting will help you to become a clear picture of your financial situation and will allow you to set adequate financial goals.

Stay Out of Debt

A burden that nobody wants is being in debt. Try to stay out of debt as much as possible. Exceptions are situations where debt is increasing your net worth such as student loans because you invest in yourself. You shouldn’t go into debt for a car, holidays, gifts, clothes, and other consumables.

Slow Down Your Lifestyle

Learn self-control and live below your means. Rich people stay rich by living like they are broke. Broke people stay broke by living like they are rich. This doesn’t mean that you can’t spend any money for fun, it simply means that you should live comfortably while not overspending on things you don’t necessarily need.

Keep Savings Out of Checking Account

It is beneficial to separate your savings account from your checking account. This will make it more difficult to cash out your savings for unnecessary purchases.

Pay Off Credit Card Debt

Before you can start saving and investing you need to pay off your credit card debt.

Invest In Assets Not Liabilities

It is essential to know the difference between assets and liabilities before you start investing. In some cases what we think are assets, actually can be liabilities.
Check out Robert Kiyosaki’s video to understand the difference.

Start Saving Asap

Start saving immediately. No matter how small your income is, always try to put a minimum of 5% of your after-tax income into your saving account.

Pay Yourself First

This philosophy sounds controversial at first but eventually, this mindset will ensure you’re hitting your saving targets. Instead of paying everything else first and at the end of the month struggle to have anything left to save, reverse the roles and pay yourself first. This will force you to keep your finance in order.

Start An Emergency Fund

Having money in an emergency fund is important to keep you out of financial trouble. Therefore build up your emergency fund until it covers 3 to 6 months’ worth of your living expenses. This will reduce stress in financial rough times like when your current contract is running out and you haven’t signed a new one yet. It is important to have this kind of safety net.

Invest

After you have paid off your debt and build up an emergency fund worth a minimum of 3 months’ worth of living expenses you should start investing to generate cashflow.
Huge capital is not necessary to invest. You can start investing with just 25 € a month. The crucial about investing is to start now, not tomorrow, and not the next time you get a raise. The earlier you start the more time for your money to grow.

Don’t Borrow From Your Emergency Fund

Don’t borrow from your emergency fund to purchase luxury items that you can’t afford right now. This money is supposed to be for emergencies and not to fulfill your needs of status symbols. Learn self-control and only spend available money.

Top personal finance podcasts

Popcorn Finance

Chris Browning’s podcast aims to help you better understand your personal finances without wasting your time. Episodes are about the time it takes to make a bag of popcorn.

Money Girl’s Quick and Dirty Tips for a Richer Life

Money Girl is hosted by personal finance and business expert Laura D. Adams. The short episodes inform about business, personal finance, and investing hacks.

Future Rich

Hosted by certified financial planner Barbara Ginty, Future Rich is a mix of financial advice and constructive feedback to help her guests reach their financial goals. You can learn how to work towards becoming future rich.

Paychecks & Balances

Rich Jones podcast is perfect for millennials and everyone else interested in making and saving money. He also tackles topics such as how to get out of debt.

Money for the Rest of Us

This podcast by former Chief Investment Strategist J. David Stein is best for beginning investors. Besides giving you an inside view of the market he explains portfolio balancing and how to invest with small amounts of money.

The Side Hustle Show

Are you thinking about making extra cash? This is your podcast. The Side Hustle Show is all about turning your side hustle dreams into reality and making them profitable.

ChooseFI

Jonathans and Brad’s podcast is all about financial independence. They discuss the actions you can take today to make reaching financial independence probable. Their topics are passive income, reducing expenses, how to travel the world for free, and much more.

Frugal Friends

The Frugal Friends podcast is hosted by personal finance writer Jen Smith and social worker Jill Sirianni. Everybody who wants to save money, spend less, adopt minimalism or pay off debt will like this show. Their topics have a wide variety from how to live on an extremely low income to understanding the stock market.