Sept. 19, 2022

Ep. 9 Handle Your Bread

Ep. 9 Handle Your Bread

If you are at a point in life where you are overwhelmed by navigating your personal finances, then this episode is for you! Handle Your Bread is real talk about the importance of athletes developing their financial literacy. Rey shares her real-life expe...


If you are at a point in life where you are overwhelmed by navigating your personal finances, then this episode is for you! Handle Your Bread is real talk about the importance of athletes developing their financial literacy. Rey shares her real-life experiences on how she goes about defining her managing her money system. She also shares key facts about the importance for athletes to understand the ins and outs of their wealth system. Finally, Rey wraps up the episode with 3 actionable steps for you to successfully brand yourself as an athlete:

  1. Commit to becoming financially literate 
  2. Educate yourself and understand your money habits 
  3. Take action and create a sustainable plan to reach your financial goals

Hold the Mic: 

[1] Minority Mindset 

[2] Money After Graduation 

[3] Money Under 30 

Sources:

[1]  Why do professional athletes go broke? | Fox Business

[2] 5 things athletes and entertainers who lost all their money did wrong, according to a financial advisor who knows

 

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Transcript
Ep.9 Handle Your Bread [00:00:15] Intro reyanna_lambie: Hey guys, welcome back to Growth on the Daily, the personal development podcast for athletes. My name is Rey, and I'm your host. I'm a former competitive hockey player, passionate about self growth, and I'm here to support you on your journey to becoming the best version of you. Thank you guys so much for tuning into today's episode. For those of you who are new to the show, welcome to Growth on the Daily. And for those of you who are back for another episode, thank you so much for taking the time once again to tune in for another episode. Before we dive into this episode, just a reminder to follow us on Instagram @growthonthedaily to stay up to date with the show. This week's episode is titled Handle Your Bread. You know what I'm talking about, guys handle your money. In terms of Specialties for Success, we're talking about financial here. We're talking about how do you take control of your money, money management, personal finances, all topics that encompass this financial category. And we're gonna talk about them all today. So if you're at a point in life where you're overwhelmed of how to navigate your personal finances, then this episode is for you. Alright, guys, let's hear from the experts. [00:01:27] No Cap, all Facts reyanna_lambie: In my research this week, I want to communicate two points. The first is understanding why athletes actually need to understand money management. And second is the key reasons that athletes tend to lose all their money. So the first is a statistic that comes from Fox Business in an article they published that was titled Why do Professional Athletes go Broke? And in this article, they released a stat that says "78% of professional athletes go broke after three years of retirement". So imagine you've worked, you've made your money. And just three years later, once you've retired, after all the hard work you put in you're out of money, no one wants to be in that position, but why does this continue to happen? Looking now to an article from The Business Insider, they highlight some key reasons that I want to share with you as to why athletes tend to lose their money. They say that "one of the biggest mistakes that athletes and entertainers make is not having an end goal in mind. You got to start with the end in mind. If you aim at nothing, you'll hit it with amazing accuracy. Another common mistake that athletes and entertainers make in is trusting their team so much to take care of everything that they become hands off with their money". So those are the two key problems. The first is having no idea where you're trying to go. And the second is having no idea what's being done with your money, because you're leaving it all to the professionals. So clearly we understand now that we have to take some responsibility for ourselves and our finances by understanding what's happening with our money and where we're trying to go with it. So now guys, I wanna share with you my take on how you can actually begin this money management journey. [00:03:15] Rey's Remedy reyanna_lambie: So the first step in your journey towards money management is education. Your financial situation will never improve if you don't know what you're dealing with. So it's important that you understand your financial situation. If you can't manage a hundred dollars now, how do you expect to manage thousands and even millions later on? So start with the basics, guys. Understand how banks work, how does interest work? How does the economy work? What types of accounts can you open at banks? Checking accounts, savings accounts, registered accounts. How does that implicate taxes? And then once you've grasped those basic concepts, then you can look into growing your money. So you can look into things like investing or income generation, various areas that we can look at going down the line. But if you don't understand the basics, then we're not even gonna get into growing your money yet because you'll end up in the same scenario, mentioned in the research, right? You'll be blowing your money or not knowing where you're trying to go. After we've reached this education standpoint, obviously you're never gonna know everything, right. But one thing you have to know is that you have to make some sort of step or leap at some point. So once you think you've grasped the basics, then you can go into looking at yourself. Understanding your money system is the second step in this journey. So what are those inflows and outflows of your cash? What are the spending habits? What are your expenses? Do you have any debt? How much do you owe? What's the interest on that? Savings. Do you have any savings? What's your savings goal? How much are you saving on a monthly basis, on a weekly basis on a yearly basis? Is that enough? Are you saving too much? Right. Questions to ask yourself? What about investments? Are you investing? Should you be investing? What are you investing in? Is your investing strategy right for you? Is it right for you at this period in time? So many questions to ask yourself, but they're important because you need to understand your financial system. And then another thing that ties into it is budgeting. You need to understand budgeting and you need to understand whatever the budget that's most ideal for your lifestyle looks like, and compare it to how you're actually spending money to gauge your performance of where you're trying to go. Once you've understood your system, then you can head into that final step. Step three, establish your financial roadmap. And that's where we're answering that question of what's your end goal. Knowing where you're going is key, because that allows you to understand what you're striving for. Right? So think about the life that you want build and that what you want to have. It doesn't have to just be materialistic, but feel free to be as materialistic as you like. It's your life, it's your money. But you need to understand that if you wanna buy a Lamborghini in the future, you're going to have to be making some steps today to get there. So that's key to understand, and then you can actually start building a system to get to that goal. Right. And there's so many ways to do that, but I'm just gonna mention a few areas that you might have heard of are familiar to you, or that might peak your interest. The first is you can start a business or a side hustle, have that extra money coming in. That's when you have terms like passive income, which we'll talk about in the future. Maybe you are buying assets. So investing in the stock market or crypto, NFTs, real estate, whatever floats your boat. Maybe you are focusing instead on staying the course with the nine to five and maximizing your earned income. So that's promotions, that's bonuses. Maybe you want to increase your savings rate. Maybe you're trying to have a more diligent budget and reduce your spending so many ways to go about building your financial system. It depends what's right for you. And only you are gonna know that. So now, you're probably thinking, okay, but how do I go from point A to point B? I know where my point B is, and I know where I'm at now. And I understand that these are a few vehicles I can use to get there, but when am I going to get there? First of all, there are so many things you cannot control. But you can control you, your reaction to things. And so I actually had this quote that I wrote down in my journal the other day. It said that life is 10% what happens to us and 90%, how we react to it. And that's exactly the truth. So my point here is stay the course. Patience is a virtue. Pick your path and just stay the course. You are gonna face roadblocks. You're gonna face construction. There's going to be forks in the road. It is not going to be easy. But once you have your end goal in mind and you know how to get there, you just have to put in the work. And yes, there's luck. There's risk. There's so many things that have to be in favor, but why would you focus on all the things you can't control? When you can focus on the things you can control, because at the end of the day, if you are not putting in the work, you know, it's not gonna happen, but there's a much better chance that it will happen if you're focusing on doing the job that you are supposed to do. Anyways, guys, I hope that you got some sort of takeaway there, but that's enough talking for me on this. So time for a quick shoutout. [00:08:15] Hold the Mic reyanna_lambie: For this week's Hold the Mic. I really wanna share with you guys a few resources, because I know I'm throwing a lot of information at you. And a lot of people find financial systems, money management, personal finance, whatever it is, they find it stressful. And I understand that. And so I want to share with you some resources that might help you on your education stage to becoming financially literate. One is Minority Mindset, a great website, theminoritymindset.com. There's also a YouTube channel, blog, so much that goes into it. Highly recommend checking it out. Money After Graduation. Very good. That's newly discovered on my end. I really love, the fact that it is a Canadian site. So because of that, there's a little bit more, attention to some registered accounts, like TFSA, RRSP, things like that, in the Canadian money system. So that might help a little bit more if you are a Canadian listener. So you can find that moneyaftergraduation.com And there's also another U.S. Site. That's Money Under 30 has tremendous amount of resources. It's endless you could spend a year going through the site, and that's moneyunder30.com. So take a look at those websites. I will link them in the show notes. And I hope they are able to help you on your journey to becoming financially literate. So let's wrap up this episode. [00:09:30] Meaningful Mention reyanna_lambie: For this week's Meaningful Mentions I have three key takeaways for you. The first is commit to becoming financially literate, understand that you need to educate yourself and that you can't just leave it up to the professionals. They're professionals for a reason, but you need to also understand how to identify which professionals are right for you. And at what time are they right for you and only you are able to do that, but if you have no insight into what they do, you can't possibly make the right decision for you. So commit to becoming financially literate. The second thing I would say is educate yourself and understand your money habits. Your financial situation isn't gonna change if you don't understand what's happening right now or what the problem is, if there is a problem, right? You have no idea. You need to see where you measure up? And that scale that I'm saying, where do you measure up? I'm not comparing you to other people. I'm comparing you to yourself and to your future self. So you understand the gap that needs to be bridged to reach your own goals. And that's completely personal. And the final takeaway I have for you guys is you need to take action and create a sustainable plan to reach your financial goals. So once you know where you're going, you understand the financial system, how things work and what your personal situation looks like. Then you can develop that plan as to how you're gonna reach those steps. And in order to actually get to that point of meeting your goal, you have to understand that it's something that has to be consistently followed for you to see those returns and end up where you're trying to. [00:10:56] Quality Quote reyanna_lambie: So to help you this week, I have a perfect quote from the one and only Robert Kiyosaki author of Rich Dad Poor Dad, a phenomenal book that I highly recommend to anyone and everyone of any age, please go pick up that book and read it. I promise you after you read it, you're going to wanna give it to a million people. But these are a few words from him in that book. And he says, "it's not how much money you make, but how much money you keep, how hard it works for you and how many generations you keep it for". I hope you're able to get some realizations from those words. I know that I did. And hopefully that supports you on your journey this week to becoming financially literate. [00:11:37] Outro reyanna_lambie: Alright guys, that's all I have for you this week. Thank you guys so much for tuning into this week's episode. I applaud you guys for committing to learn, grow, and thrive. Send this episode to a friend or family member, anyone, you know, looking to improve themselves. This community grows by sharing that so I really appreciate you guys doing the show a solid. Of course, guys, don't forget to check out our website growthonthedaily.com for more info and leave us a review on Apple Podcasts, Spotify and on our website. Thanks guys. And I'll see you next week.