With a financial squeeze causing havoc behind the scenes, professional rugby is arguably moving towards a crisis point.
We have already seen the collapse of Wasps and Worcester Warriors this season, leaving coaches, players, and staff facing redundancy.
Concerns for player security could continue into the summer too, according to general secretary of the Rugby Players’ Association and former Northampton Saints lock, Christian Day.
As reported in the Guardian, Day has said that the players market “is incredibly squeezed”, with as many as “10 senior players per squad” at risk of “not being there next year”.
Indeed, you may have already been affected by the issues currently facing the sport, or at least know a fellow professional who has been.
During a time like this, you may be understandably concerned about your finances. After all, if your club were to collapse, you could suddenly find yourself losing out on your main source of income.
That is why it is so important to organise your wealth to ensure that you can continue to live your desired lifestyle, no matter what happens around you.
So, find out how you can manage your money and navigate this period of uncertainty, to ensure that you remain financially stable.
Set money aside for an emergency fund
A simple yet highly effective choice you can make is to set money aside from your earnings each month to create an emergency fund.
Whether you find yourself without a club, or you simply have a sudden payment to make such as repairs on your home or car, it can be immensely useful to have money set aside that you can use in a pinch.
You might also find it reassuring to know that this buffer is available, even if you never actually have to make use of it.
You may want to hold enough in your emergency fund so that you can meet your regular financial obligations for perhaps three to six months. It is often sensible to keep your fund as cash in an easy access savings account, so you can use this money whenever you need it.
Make sure you are covered for different eventualities
While the current crisis in professional rugby might be the most pressing issue on your mind, there are many different eventualities that could affect your income. As a result, you may want to consider putting protection in place to provide cover for you and your family.
For example, with the current uncertainty surrounding many rugby clubs, you could look at having some form of income protection cover. This could ensure that you still receive an income, even if you are made redundant.
Outside of redundancy, other events and issues that could affect your income include:
- Injuring yourself in a match
- Being diagnosed with a life-changing or critical illness
- Dying during your career.
If any of these events were to befall you, and you were no longer earning, it might put you and your family in a difficult position. So, having cover in place that protects against them and provides an income can be powerful.
Much like an emergency fund, you might never need to rely on your protection cover. Even so, knowing that you have it in place can give you peace of mind that you will be financially stable if you were to be affected by one of these events.
Start planning for your future, even if you have just started your career
A major lesson to learn from the crisis facing rugby clubs is that it is never too early to start planning for your future.
It is all too easy to think that you only need to worry about the now, especially if you have just started your professional career. But actually, investing money or setting it aside in your pension should be a high priority.
You may have read the previous article we published on this topic, in which we explained why you should know what you have in your pension, even early on in your career. In that article, we suggested two powerful reasons why this is the case:
- It can help you stay on track to meet your goals for the future.
- You give your wealth a longer timeframe for potential growth in the investment markets.
With the current state of professional rugby, this seems even more relevant. The uncertainty many players may be facing shows just how important it is to save for your future while you can. You never know when you may need to temporarily reduce how much you are setting aside, or even pause doing so for a period.
Wherever you are in your career, it may be worth checking that you are setting aside enough to afford your desired lifestyle once you have hung up your boots.
Work with a financial professional
Perhaps the most prudent decision you can make is to work with an expert to help you manage your wealth.
A financial planner can take a holistic view of your entire financial situation, and then suggest and implement changes that ensure your money is suitably organised and working hard for you.
They might recommend that you consider doing the things in this article, or they may identify other areas of your wealth that could use attention.
Crucially, knowing that you have an expert handling your money can give you enormous peace of mind, particularly during periods of uncertainty.
By working with a financial professional, you can be confident that you have an expert by your side to help you navigate any crises you might face throughout your career.
Get in touch
If you would like help securing your wealth to ensure you and your family have financial stability no matter what happens, please do get in touch with us at DBL Asset Management.
Email enquiries@dbl-am.com or call 01625 529 499 to speak to us today.
Please note
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
A pension is a long-term investment. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Your pension income could also be affected by the interest rates at the time you take your benefits.
Note that financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse. Cover is subject to terms and condition and may have exclusions.
