CHRIS EVERT:
Hi, I'm Chris Evert. Welcome to Episode 1 of What Moves You, an audio miniseries from Morgan Stanley in support of the WTA.
We're here to talk about some of the most common questions you have about money. Questions like the ones I had over the course of my career.
Everyone who plays the game has different experiences and different backgrounds.
But there are some things as players that we all have in common.
We just want to play. We just want to win. And we don't want and can't afford to have worries about finances interfering with our focus on the game.
In this set of episodes, we'll be discussing some of these questions with Morgan Stanley Financial Advisor, Nadine Wong.
NADINE WONG
Hi, I'm Nadine Wong. I'm a Morgan Stanley Private Wealth Advisor and a Global Sports and Entertainment Director. I specialize in serving the unique and complex needs of professional athletes and entertainers.
CHRIS EVERT:
In this first episode, we look at one of the most basic elements of money in tennis. Let's face it, training to be a tennis player can get awfully expensive.
When you think about coaches, hitting partners, fitness experts, physios, players need to know how to manage all of these expenses.
But the answer is not a glamorous one.
NADINE WONG:
You have to make a budget.
You have to make a budget.
I love going to the US Open. The last time I was there, I noticed this great quote from Billie Jean King: "Pressure is a privilege." And that's great in the context of the game of tennis -- but of course you don't want any pressure when it comes to your finances. And that's where a budget comes in.
To some of you, this might seem obvious, but players at all stages benefit from feeling like they understand and are managing their finances responsibly.
Making a budget means different things depending on where you are in your career, and what kind of income you can rely on. If you’re early in your career, you may not know how much you’ll be earning, so where do you start?
First, add up your expected income (anything you can count on) and what you already have in your checking and savings accounts. Are you expecting any non-tennis revenue? Include that as well.
At this point, you get a sense of what you have to spend, save and invest by deducting taxes - more on that in a future episode. The remaining amount is your take home pay.
Now, take a look at how you’re currently spending that money. Review bank account and credit card statements, plus any debt you’re carrying. Remember to account for what you purchased with cash as well.
Make a list of your fixed expenses for the year – like rent, car payments, coaching fees, insurance, travel to tournaments. These are your needs.
The rest of your expenses are WANTS or variable spending - the area you have the most control over.
By comparing your take-home pay with your current spending, you’ll quickly get a sense of how well you’re living within your means and now that you have a clearer financial picture, you can begin to make changes and plan your spending and saving monthly and annually. The budget helps you avoid money-related stress and focus on tennis. And as your career progresses, and your income and needs change, you’ll be able to adjust the budget to maximize your financial security and your future opportunities.
CHRIS EVERT:
Making a budget isn't exactly glamorous, but it's an important step in achieving that stable financial baseline so you can just focus on your game and make sure any stress about money stays off the court.
Thanks for listening to What Moves You. I'm Chris Evert, and once you've got the basics of budgeting with some of the ideas you just heard, you're ready to start thinking about saving.
That's up next.
