Early in my career I had the opportunity to work with several NFL and former NFL professional athletes, and upon a visit earlier this week with an investor, a parallel of investment decisions in the current employment and business climate came to mind.
Very early in my career, I visited with, and helped with financial planning, for several professional athletes from the NFL. One was a starter on a team at the time and one was a first round draft pick that played several years and then hung up his cleats’. Contrary to many articles you may read in the headlines today, these athletes actually had thoughts that carry a parallel to our current employment and business situation.
The question both athletes asked “What happens if tomorrow is not as financially fruitful as today”, one actually said “If I blow out a knee tonight, What will I look like financially? “ I share these experiences as this thought was brought to the front of mind from a discussion with an investor earlier this week, and I found myself repeating the statement I had been told.
In today’s short sighted employment and cyclical business climate, it is always worth thinking and reviewing that tomorrow we might not earn what we do today. If you are about to receive a large bonus, commission, business sale proceeds, or inheritance, it might be useful to examine your situation with the expectation of an extended period of time of lower wages or even a period of no wages.
What can be learned from this thought?
Most investors will take a slightly more conservative approach not just to investing, but to spending habits as well. It is very easy to get caught up in all the new “Wants” versus actual “Needs” of today. Many times being conservative may not feel as fun as you would otherwise like, but often it may lead to a less stressful and more fruitful future.