Carl Nassib tried to advance professional sports culture even before Monday, when he became the first active professional football player to declare himself gay. But he focused on the financial lives of NFL players.
In a league where some players can go bankrupt soon after retirement, Nassib spoke to his teammates about good financial habits and the challenges players face when they get very rich, very quickly.
The 28-year-old Las Vegas Raiders defensive end, with a three-year, $ 25 million contract and career 20.5 sacks, knows compound interest, index funds and the need to budget, just like he knows a training of five hundred and ten cents in the field.
“In a league where some players may go bankrupt soon after retirement, Nassib has spoken to his teammates about good financial habits and smart money movements.“
All kinds of people might have more financial literacy, but professional athletes have a particularly acute need.
They make a lot of money quickly at a young age and embark on a high-profile and potentially high-spend lifestyle. During this time, there is always the risk of injuries that cut short careers and huge opportunities for earning money.
An estimated 16% of NFL players have gone bankrupt within 12 years of retirement, according to a 2015 study. Sometimes it only takes two years before an ex-player files for bankruptcy, they noted.
This is where people like Nassib and others try to develop the financial literacy of athletes.
“I didn’t want to pay someone to manage my money”
“I didn’t want to pay someone to manage my own money, so I took the time, but I educated myself and wanted to share this new knowledge with my teammates,” Nassib said in a statement. CNBC 2019 interview.
On Monday, Nassib put the same emphasis on the need to share and improve the world around him in his FB Instagram,
announcement. Nassib hoped there would come a day when exit declarations were “unnecessary.” But until then, I’m going to do my best and do my part to cultivate a culture that is accepting, that is compassionate.
Here are five of Nassib’s biggest financial successes:
Compound interest: At a 2018 financial chalk conference, Nassib, then with the Cleveland Browns, shattered the power of compound interest for his teammates. “We have a lot of money now, don’t we? It’s the simplest equation to make you rich, ”he said, according to a clip from HBO’s Hard Knocks, an inside look in football teams.
Seven years of 10% return would essentially double the initial investment, he told them. “Fro, this is crazy,” Nassib said in an F bomb-laden lesson (Nassib later said his grandmother watched the clip and called him about the curse.)
Index funds: Nassib is playing the market – at least up to a point. He has said before that he puts money into index funds and then lets them do the work of building his portfolio over time. “Being young. Younger. We have a lot more time to invest, so I think with long-term investing, index funds are a great tool,” Nassib told CNBC presenters.
“‘Be young. Younger. We have a lot more time to invest, so I think with long-term investing, index funds are a great tool. ‘“
To live within one’s means : During that same 2019 interview, Nassib said that spending within the limits of the financial means is a “pretty solid” approach to money. This is, of course, a widely held opinion, but it can be more difficult to implement.
Nassib said he spends $ 3,500 a month during the football season and $ 5,500 off season. The offseason is when Nassib said he had more time to travel and his food expenses increased without the meals provided by the team.
“It’s about realizing your spending habits and living below your means, and more and more NFL players are doing it every day,” he said.
Budgeting: Nassib is a budget. It took a while to learn the skill, Nassib admitted in the 2019 CNBC interview. “I improved a lot in Excel MSFT,
He said, adding that he aims to give himself $ 400 to $ 500 of money for various funds that are not earmarked for anything else.
Give back: In Nassib’s announcement on Monday, he said he was donating $ 100,000 to The Trevor Project, a suicide and crisis prevention organization for LGBTQ youth.
“It’s an amazing organization,” said Nassib, adding that he was “very excited to be a part of it and to help in any way he can.”
The donation will help The Trevor Project expand its services, according to Amit Paley, CEO and executive director of the organization.
“Getting out is an intensely personal decision, and it can be incredibly scary and difficult to make,” Paley said. “We hope Carl’s historic portrayal in the NFL inspires young LGBTQ athletes across the country to live their truth and pursue their dreams.”
Americans made a record $ 471 billion in charitable contributions last year, according to the GivingUSA Foundation.
Related: NFL player Carl Nassib donated $ 100,000 to The Trevor Project – 5 more LGBTQ groups to support during Pride Month