In a recent podcast interview, former NBA player Charles Barkley shared insights into why nearly 80% of professional athletes go broke after retirement and how to avoid their mistakes. Barkley admitted to making financial mistakes early in his career, including splurging on multiple cars. He recalled getting valuable advice from NBA legend Julius “Dr. J” Irving, who emphasized the importance of managing money wisely to last a lifetime. Barkley highlighted the statistic that 78% of athletes go broke within three years of retirement, stressing the need for financial planning as athletes age.
Barkley and former NFL player Shannon Sharpe discussed the tendency of younger athletes to overspend on luxury items such as designer shoes and clothing, without considering the long-term implications of their financial decisions. Sharpe, who grew up in poverty, acknowledged the desire of many athletes to demonstrate their newfound wealth but emphasized the importance of financial literacy and responsible money management. Barkley also mentioned the pressure athletes face from friends and family to spend recklessly, noting that he had to learn to say no in order to protect his financial future.
To avoid falling into the same wealth-draining traps as many pro athletes, experts recommend starting to invest early to take advantage of compound interest. Even those who are not professional athletes can benefit from saving and investing wisely for future financial security. Seeking guidance from a financial adviser can help individuals set and achieve their financial goals, whether that involves planning for retirement, starting a new business, or making a major purchase. Barkley shared Irving’s advice to focus on long-term financial growth rather than impressing others with extravagant purchases.
Ultimately, Barkley’s experience serves as a cautionary tale for athletes and non-athletes alike, highlighting the importance of financial responsibility and planning for the future. By learning from the mistakes of others and seeking professional guidance, individuals can avoid the pitfalls that lead to financial ruin for many professional athletes post-retirement. With the right mindset and investment strategy, anyone can secure a stable financial future and avoid the all-too-common fate of going broke after their playing career ends.
