Rob Gronkowski: Secret Financial Genius?
Even if you’re not a football fan, you’ve probably heard of Rob Gronkowski. Not only is he a dominant football spiking tight end for the New England Patriots, but he has a strong (to put it mildly) reputation as a fun loving, shirtless party boy. So, what can this boat cruise hosting frat boy teach us about money? When you look closely, a lot. Here are some financial lessons from Gronk and if you adhere to them, you too can be a secret financial genius.
In his book, It’s Good to Be Gronk, he discusses how he spends his money. As an NFL player, most people automatically assume he spends money at will. The below quote provides some insight into how he views money.
“To this day, I still haven’t touched one dime of my signing bonus or NFL contract money. I live off my marketing money and haven’t blow it on any big money expensive cars, expensive jewelry or tattoos and still wear my favorite pair of jeans from high school.”
Gronk Lesson 1: Save Bonuses and Income
I’m willing to guess that you don’t have an NFL salary or signing bonus to save. However, most people do get bonuses or at least a tax refund. Too often people will see the extra cash come in and see it as “free money.” That money will be used on vacations or some other expensive item. The average tax refund is $3,120 per the IRS. Instead of making a big purchase with your tax refund, try saving and investing that money. Put it towards your retirement or a college fund for your kids. After saving that tax refund of $3,120 for 20 years, at a 5% rate of return, that refund money could be worth $103,166. Now that is a Gronk spike!
Gronk Lesson 2: “Big Pockets and Short Fingers”
Hopefully, your jeans aren’t the ones from High School (time to get a new pair Gronk), but Gronk makes a good point here. Just because you have it doesn’t mean you should spend it. A tendency for most people is to spend more as their income increases. Gronk went from being a poor college student to a rich NFL athlete. Even if your increase in income isn’t that steep, you should still have the fortitude to keep your spending in check. Make sure you have some room in your pockets.
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Gronk Lesson 3: Have fun!
Gronk shows us that you can still have fun on less than your full income. There can even be incredible freedom in saving your money first. Most people will save only what they have left over. Which is why they feel guilty spending money. If you pay yourself first and commit to a good savings rate (15% of your salary is a good goal to have) then you will be free to spend whatever’s left with no guilt. You work hard enough and you should be able to enjoy it.