In 2013, I was introduced to Steve Symonds, the-then Personal Development Manager for The Hurricanes. We got to chatting and we quickly established that between his knowledge and mine, we could address an issue for the players that is not commonly known, let alone talked about – financial literacy.

Rugby players are often well-paid in the world of professional sport. But that doesn’t mean that their good incomes last forever, or that the money is spent or invested wisely while the earnings are good.

Working as a financial adviser, I quickly saw a need for solid, independent financial advice for these talented young stars. Operating in the spotlight and the glory of the moment, the future is often far away in these young player’s minds, who are sometimes wealthier beyond their dreams. It was easy for them to enjoy material things like nice cars and clothes and ignore far away things, like retirement.

The trouble is that poor financial choices made while the sun is shining lead to less choices down the track when the weather rolls in, and even worse, lots of debt. We wanted to make sure that these players were set for life, not just for their short stint in the floodlit limelight. Between us, Steve and I developed an initiative for the young players to help them navigate the complex world of money and set themselves up for a good future. We called our program The Game Plan.

The Game Plan

The Game Plan exists to assist young players today with their financial future.

Professional Rugby players are naturally talented, they are often identified early on in a school rugby environment. The next progression is a rugby academy within a franchise, all going well they will progress into a provincial team, Super Rugby and the top tier our national team. Others may choose a path offshore.

None of this progression happens by chance, they must be committed and focused.

One of the keys of their success is their coaching team. As the players progress through each level of their career, the coaches develop them to become 10%, 20% and 30% better.

The players understand the importance of the coaching staff as an integral part of their journey. And there are a lot of coaches working hard to develop these players, including coaches for forwards, backs, defence, attack, an assistant, and a head coach. As part of my initiative within the Super Rugby circle, I became known as “Coach Number 7”.

My role as coach number #7 was to help the players be 10%, 20%, 30% better with their finances and hold them accountable to their game plan. A game plan is so important for these young stars. The nature of the sport and industry mean that they have a limited shelf-life on the field, and even that can be ended prematurely in a moment due to a career-ending injury, drop in form – or even a global pandemic.

It's not only rugby stars that need a plan. Although non-professional sports peoples (like you and I) tend to have a steadier income throughout life, it doesn’t mean we are safe from potholes along the way, or that we know how to make the most of our money while the earnings are good. The average kiwi has no idea what amount of money they actually need to retire on, let alone when they can actually stop working. This is why we all need a game plan.

Time to get your game on.

Get started on a game plan of your own. There is no reason why you can’t coach your own self into a more future-focussed money strategy, and get yourself into a 10, 20, 30% better place too.

Start by getting your head around these things. Even start small and focus on one at a time.

Define your financial goals: The first step is to define your financial goals, including short-term goals (within one year), medium-term goals (within five years), and long-term goals (over five years). Your goals may include paying off debt, saving for a down payment on a house, or saving for retirement.

Assess your current financial situation: To create a plan, you need to know where you stand financially. Start by reviewing your income, expenses, and assets. Calculate your net worth by subtracting your liabilities from your assets.

Develop a budget: A budget will help you track your spending and ensure you are on track to achieve your financial goals. Start by categorizing your expenses and identifying areas where you can reduce your spending.

Develop a plan to pay off debt: If you have any outstanding debt, develop a plan to pay it off. Start by prioritizing high-interest debt and make extra payments whenever possible.

Create an emergency fund: An emergency fund is a crucial part of any financial plan. Aim to save three to six months of living expenses in case of an unexpected expense or job loss.

Save for retirement: Saving for retirement should be a priority in your financial plan. Start by contributing to a retirement account, such as KiwiSaver. Review your contributions, align the fund type (asset allocation) to your timeline and review annually.

Develop an investment strategy: Depending on your financial goals and risk tolerance, develop an investment strategy that includes a mix of property, stocks, bonds, and other investments.

Measure, review and adjust your game plan as needed.

Much like a game plan, you need to review and adjust your plan as you go along to achieve the optimal results. If the score board isn’t on your side, you need to adjust and get back on track. If the scoreboard is blowing out in your favour, you may be able to back off, and be ready for the next challenge.  Your financial plan is not set in stone. Review your plan regularly and make adjustments as needed.

The most important thing is to begin.

In 2023, there is much economic uncertainty. We have already seen several years of unexpected events that has given us an appreciation of some of the vulnerabilities of our position. Life is fluid and full of challenges, but also opportunities.

I have been privileged to work with athletes across several codes and the theme is the same. They have a plan, they understand the importance of a coach and, most important, they have a dream or goal to work towards.

Be your own coach or if that isn't your thing, hire someone like me who can help. Like anything worth doing, your best bet is to get some professional input. At least have a talk with an adviser and see what your options are.

Your financial game plan is a roadmap for achieving your financial goals. Be patient, stay committed to your plan, and you will be on your way to financial success.

Dean.

Make a time to chat with me about your game plan

About Dean

Hi everyone! My name is Dean, and I am Financial Adviser and coach. I work with people to help them to achieve their financial goals and assist them to make smarter financial decisions. Drop me a line for a chat and to work through your goals. I work with you to become financially fit and together we create a game plan for your financial future. D.

Disclaimer: Dean Blair (FSP87402) is a Financial Adviser with Velocity Financial (FSP95466). No investment decision should be taken based on the information in this blog alone. Please see Dean’s disclosure statement on our website.

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