A little while ago we published a piece on how not to manage your money based on the extravagant spending habits of former NBA superstar Allen Iverson.
So it’s only fitting to look at an example of how to manage money well courtesy of current NBA superstar and Australia’s richest sportsman, Andrew Bogut.
The 30 year-old Golden State Warriors’ centre pulls in a healthy salary of $14 million a year for his efforts on the court, more than an entire NRL or AFL team. But despite being able to buy, well, pretty much anything, he’s managed to keep his feet firmly on the ground.
ESPN recently interviewed Bogut as part of a series on athletes’ spending habits, and asked him to keep a diary of all his purchases over five days. Here’s what happened.
Bogut’s budget breakdown
Over five days in October, Bogut spent $2,052, or $410 a day. To put that in perspective, he earned $192,000 before tax in the same period.
He’d just bought a home for himself and his two Siberian Huskies (he’d been renting beforehand), so the bulk of his costs (58 per cent) were related to moving in expenses like buying furniture, choosing fabrics, and, sure, installing a billiard table and buying a hot tub.
The rest of it is all fairly mundane, and could be straight out of almost anyone’s budget.
About a fifth of his spending went on coffee, European beer, and eating out (21 per cent). The rest was made up of car costs and transport (15 per cent) and feeding his online shopping addiction (6 per cent). Hardly the champagne and caviar lifestyle you’d expect of a superstar.
“I’m probably the complete opposite of what you think an NBA player is. I don’t like to do anything extravagant.” – Andrew Bogut
How Bogut manages money
You might think that with a basketball career to worry about and money to burn, Bogut would hand off his money management to a professional. Not so.
Instead, he taught himself to manage his own money by enrolling in a couple of semesters of financial courses at an Aussie uni. He pays his own bills, always keeps a cash surplus on hand, and saves or invests at least 75 per cent of his earnings, after tax.
And while he does boast a collection of 16 vintage muscle cars, including a 1969 Ford Mustang Boss 429, for the most part Bogut is a great example of how to be smart with your money.
Check out the full list of his expenses after the break.
23 October 2014
$4.45: Frappuccino, Starbucks
$38.97: Two chicken salads, two iced teas, one soup, Tender Greens
$225: Billiard table installation
“The table weighs like 600 pounds — it took two or three guys to take it out of storage and put it together in the living room. I’ll happily cough up the cash instead of hurting my back.”
$149.12: Two tanks of gas
$23: Two burritos, Chipotle
24 October 2014
$10: Two Australia-to-U.S. adapter wall plugs, eBay
“Why eBay? First of all, you can’t find this adapter in American stores. Second, I’m a big online shopper in general, because it’s hard for me to go to an actual store. I don’t know if you noticed, but I kind of stand out.”
$101: Billiard cue rack holder, eBay
$38.12: Miscellaneous, Safeway
$33: Dinner, Maria Maria Mexican
25 October 2014
$80.84: Groceries, Whole Foods
“I’m always willing to pay top dollar when it comes to what I put in my body.”
$90.11: Two toothbrush holders, bathroom accessories, fabric samples, Restoration Hardware
“My girlfriend did the shopping. I don’t mean to sound sexist, but it’s better if she picks out fabric.”
26 October 2014
$70.92: Miscellaneous, CVS
$44: Two chicken salads, two iced teas, dessert, Tender Greens
$60: Two car washes
$8.90: Two Frappuccinos, Starbucks
$11: Six-pack of beer
“A few nights a week, I like to have a beer or two and relax before bed. But only European brews. I don’t dig too much into generic American beers.”
$90.11: Dinner, Italian
27 October 2014
$83.17: Groceries, Whole Foods
$11: Burrito, Chipotle
$500: Deposit on a hot tub purchase
“When it’s a little chilly outside, there’s nothing better than cracking open a beer in a hot tub. It just clears my mind.”
$281: Two bar stools, Overstock.com