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Over the course of a successful athletes career, they may earn so much that the phrase 'never having to work again' is used in narration to their earnings. Truthfully, there are many who may never need to, but the validity of that claim is consistently tested by the number of Athletes who have filed for bankruptcy a couple of years after retirement.

It is one topic that fascinates me, because a normal person may never see in their lifetime what some athletes earn in a relatively short span. So how in the World does it get finished so quickly? The typical riches to rags story should be an aberration in a normal sense.

A closer look at the situation suggests some obvious deficiencies in the character traits of some athletes: A lack of financial education and an absence of personal discipline.

Of course you would expect that for people so dedicated to their chosen events, it should somehow translate to other spheres of life. This sometimes isn't the case as can be highlighted in the lavish lifestyles of some of these popular figures in question. Mike Tyson is one popular figure who was famed for his spending habits, later went into bankruptcy.

The idea of 'keeping up with the joneses' for an athlete is one that should be discouraged even for the biggest of earners. Bad spending habits are like cancer, and debt can quickly spiral.

Another big problem is what seems to be a lack of sound financial education. It doesn't appear that many athletes place a premium on becoming better managers of their finances while active. The downside to this is that with so much money on offer, there are tons of opportunists who will come under the guise of wanting to help. Athletes are all too ready to listen to these friends and acquaintances who bring proposals and promises which can't be backed by anything.

Even for those closest to us, which is people in their inner circle like personal managers and family, athletes must be weary of being too trusting with their finances. Spouses can be particularly guilty in this regard, with things like divorce proceedings and custody battles eating into an athletes earnings. Only lawyers are happy in this scenario. Legendary Ice skater Dorothy Hamill was one of such victims, as well as soccer player Emmanuel Eboue.

Bad investments is also another contributor to an athletes downfall. It is usually a direct consequence of receiving bad financial advice or not having sound financial education. There really is a need for professional athletes to improve in this regard and being fully equipped to manage their wealth should be just as important as landing mouth watering contracts.

Conclusion

Sound financial management for sportsmen and women is not impossible, as we have seen with those who have successfully transitioned from active play to life after retirement while maintaining or growing their Finances. Some have gone on to be multi-millionaires such as MJ while some live relatively low key lives without the financial worries of most ordinary citizens.