What Utah Jazz star Trey Burke can teach you about money management
The firm also oversees contracts with the team and any marketing opportunities.
The younger Burke’s rookie salary is about $2.4 million, but his monthly budget for spending money is about $5,000. He admits that having access to so much money is exciting, but it also requires discipline.
“I never really had a lot of money growing up, so I knew I was going to need the right team around me to make sure I was managing my money right, not just splurging and blowing it on things that aren’t necessary,” Trey said.
Since joining the league, Burke has been able to adhere to his budget “for the most part,” save for a few times when he bought plane tickets for friends to come visit when he first came to Utah.
His father said that Compass has pushed him to “stick to the budget” and, on the occasions when he has exceeded it, he reduced his spending the next month accordingly.
Thus far, Trey said he is pleased with the direction in which the team and his dad are pointing him. Looking ahead, Burke hopes to begin using his endorsement earnings as a main source of income to pay his living expenses and save all of his player salary for his post-basketball life — similar to former all-star Shaquille O’Neal, who lived off his endorsement income throughout his playing days and saved virtually every penny of the nearly $300 million he made in salary.
Lessons for everyone
Such prudent planning would serve any young person well in the beginning of their working life, said Ann House, coordinator of the Personal Money Management Center at the University of Utah.
“Live a sustainable lifestyle,” she said. “Those people who do get into trouble living this unimaginable lifestyle spend it all instead of using some of that money to make more money.”
She said adhering to a reasonable budget and being thrifty when shopping for needed purchases is key.
“Always look for sales,” she said. “You can still live frugally even though you have the money to do otherwise.”
Whether you are a millionaire or an average person, the advice is the same, she said.
“Budget. Plan. Have goals and have ways to meet those goals,” House said.
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