A life long athlete always has to figure out the answer to the age old question: what will I do after my professional career? Some start up their own businesses, some continue their sports career off the field and others use their new public platform to send out a message. Former NFL cornerback Phillip Buchanon saw his retirement as a chance to talk about finance. In his new book, “New Money: Staying Rich,” Buchanon hopes to teach younger readers the key to handling money in a sound and smart way.
Buchanon played for the NFL for ten years. He was a first round pick in the 2002 draft and played for the Oakland Raiders, Houston Texans, Tampa Bay Buccaneers, Detroit Lions and the Washington Redskins. Believe it or not, he credits his experiences playing for these teams for his maturity and awareness on finance.
“I really learned how to mature and how to grow up,” Buchanon said. “A lot of things that I thought I had handle that I really did not handle. Most of that stuff came from me having money so people looked at me a little differently and people praised me early on because they were trying to get something out of me.”
In Buchanon’s book, he talks about the amount of money he regrets spending early in his career. Like many young celebrities and athletes, he thought it would be cool to do as much as he could with his money simply because he had the ability to do so. He now believes that if he had someone older and in a similar position teach him the importance of handling his money correctly, he wouldn’t have nearly as many regrets. Buchanon took it upon himself to take up that mantle and talk about his experience in order to teach these important financial lessons.
“I thought it was important because if I understood the value of money at an early age, it probably would have prevented me from blowing money the way did when I first got it,” Buchanon said.
According to Buchanon, the books are meant to teach youngsters the importance of money’s value and how quickly it can go no matter how much one makes. He believes that understanding this early on helps one make better decisions in their career in the long run. His brand started with his creative team who helped him achieve these goals. They all help each other out.
One portion of his book talks about the concept of “new money.” “New money” is the idea that when money is first brought in, it is the period before the initial spending tendencies that establishes how the spender uses it. Buchanon believes every athlete, lottery winner and individual should be taught to handle money satisfied their needs rather than spend senselessly and this should be instilled before the “new money” starts rolling in.
“When I say new money you come to sustain amount of money that you are not used to having,” said Buchanon. “It can be six, seven or eight figures. I want to give you a basis and I wish someone could have gave me a basis. Imagine if all of the athletes or anybody who won the lottery, what if they trained for 10 years, 12 years, 15 years, almost 20 years on how to handle their money. All of a sudden they got their money, now they know what to do with it.”
In most sports athletes go for the big contracts in case of season or career ending injuries. Buchanon knows about spending money as you get it, but wants the new money to be permanent money.
“Learn how to spend your money,” said Buchanon. “It’s the habit of spending money for the reason why people are broke. I want your new money to be your permanent money and not lottery money.”
Buchanon hopes that his books would help the future on athletes and others on handling their money in a productive and intelligent way. He hopes that people avoid falling into financial traps that spell trouble later on in life.
“Find the right mentor, find someone who’s been there and done that. But to get find the wants and needs,” said Buchanon. “Second have more true friends. Someone who would help you or top five friends who you spend time with. The third one is mentors. Always try to do permanent money more than lottery money.”