Why Most Athletes Feel Broke Even When They’re Making Good Money | Jimmy Bisharat

Money Decisions Every Athlete Faces Early

Part 3 of 4: Why Most Athletes Feel Broke Even When They’re Making Good Money

By: Jimmy Bisharat

Oftentimes, when athletes feel broke it isn’t actually because they aren’t making money. They feel broke because they’re comparing themselves to the wrong lifestyle. Being an athlete is often tied to a flashy image. Somewhere along the way, nice cars, jewelry, and designer clothes began having a direct relation to what young athletes considered success in their industry. While that image comes from superstar athletes making $100 million, it soon became the new standard that young athletes feel pressured to live up to. The problem is that most athletes are not superstars. Younger athletes and middle-tier players start comparing themselves to people earning over 10x more than them. Although they’re making a great income for their age, the culture tells them they’re behind.

Another big issue is the difference between how much you make and how much you save. Athletes see the big number they earn and think that’s money they can spend. What they don’t see is how fast that number drops after taxes, agent fees, and other costs. This is especially true for NIL athletes or anyone getting paid as a 1099, where taxes are not taken out upfront. It’s easy to feel rich at first, then get hit with a huge tax bill later. When almost half your income was never really yours, spending based on the full amount almost always leads to stress.

This pressure does not affect every athlete the same way. It shows up differently depending on where they are in their career. NIL athletes are often just excited to be earning money for the first time. That excitement can quickly turn into lifestyle creep and overspending, not because they are irresponsible, but because they lack experience and guidance. Early professional athletes face a different challenge. They are surrounded by veterans who have been earning millions for years. When you start comparing bank accounts, cars, or homes inside a locker room, it is easy to feel behind, even if you are doing well. In both cases, comparison creates pressure, and pressure leads to poor financial decisions.

A lot of this is psychological, but the math matters too. Without a plan, even a high income can disappear quickly. At the same time, many athletes underestimate how strong their position actually is. Making five or ten thousand dollars a month at a young age may not sound impressive next to superstar contracts, but managed correctly, it can be enough to build long-term wealth. The biggest advantage athletes have is time. When money is invested early, it has years to grow. Over time, compounding does most of the work. Once athletes see what consistent saving and investing can turn into over decades, stress often turns into confidence.

Most athletes think they do not make enough money. In reality, the problem is usually a lack of structure. When money has no clear job, it feels chaotic. When goals are defined and numbers are mapped out, most athletes realize their situation is better than they thought. Financial planning at its core is simple. It is setting a goal, staying disciplined, and sticking to a plan. These are skills athletes already have. They have been practicing them their entire careers.

The athletes who feel the most confident financially are the ones who take time to understand their situation early. They accept that income will not last forever, take responsibility for it, and align their money with what actually matters to them.

Whether the goal is buying a home, supporting family, retiring early, or creating freedom after their playing days, clarity changes everything. When athletes focus on their own goals instead of someone else’s lifestyle, they stop feeling broke and start feeling in control. In the next part of this series, we will break down when an athlete should consider working with a financial advisor. 

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‌ Jimmy Bisharat is a Financial Advisor of Santa Monica, California-based Gerber Kawasaki Inc., an SEC-registered investment firm with approximately ~$4.09B billion in assets under management and advisement as of 12/31/25.  The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which course of action may be appropriate for you, consult your financial advisor. No strategy assures success or protects against loss. Readers shouldn't buy any investment without doing their research to determine if the investments are suitable for their situation. “All investments involve risk and one should consult a financial advisor before making any investments. Past performance is not indicative of future results." Every situation is unique and you should consult a tax professional and a financial advisor before making any decisions.