Sprinter Usain Bolt was dubbed “the fastest man alive” and now he’s retired with a multi-million dollar net worth thanks to valuable personal finance lessons.
The 34-year-old Jamaican sprinter was named one of the richest athletes by Forbes Magazine in 2018. He earned $31 million when he retired in 2017. According to Players Bio, Bolt was the highest-earning track athlete. His net worth (assets minus liabilities) stands at a whopping $90 million.
Usain Bolt Shares Valuable Personal Finance Tip
Many athletes have made headlines for going bankrupt after their time in the spotlight. But Usain Bolt used his early lessons to put him on the road to financial success.
Bolt recalls his spending habits early in his career. The 8-time gold medalist told CNBC Make It that he spent more than he wanted to when he started making money.
This isn’t abnormal. In fact, many athletes and artists are known for splurging on lavish items when the money starts flowing in. It’s even harder for an 18-year-old to navigate the ins and outs of large sums of money without guidance.
That’s why Bolt gives credit to his teammates for giving him a money 101 lesson. They helped him understand the power of saving.
According to the economic state of Black America report, there are over 7.3 million Black households that have a net worth less than $10,000. That number includes an estimated 3.5 million black families (19%) with a negative net worth. In this McKinsey & Company report released last month, the company explored savings and investing habits among Black families. The report revealed a consistent theme: high debt and low savings.
Since Bolt was able to bypass those statistics, he’s sharing his lessons learned. Similar to other influencers, his experience is helping others save more and build wealth. Bolt’s biggest lesson learned is to save more than you spend.
“I tell people if you make $10, save $6,” Bolt told CNBC Make It. “And then you can figure out what to do with the rest.”
He suggests using the other 40% of funds for spending and paying bills.
A Simple Roadmap to Save More
Although you may not have a million dollar salary like Bolt, there are ways that you can implement his strategy to achieve your financial goals.
Players Bio reports that Usain Bolt earns the most from his endorsements. This shows the power of earning multiple streams of income. By picking up a lucrative side gig, you have more money to allocate towards savings. Latasha Peterson turned her side business blog into a $5,000 monthly income stream.
Another way to achieve your savings goals is to wipe out debt. Cinneah El-Amin, a travel and money blogger, paid off $23,000 debt in 12 months. Now she’s able to allocate her previous debt payments towards savings and investing. LaKisha Simmons, a finance educator, reduced her expenses to save more.
The secret to saving more is to either increase your income or reduce your expenses. By tackling both, you can expedite your progress. Usain Bolt’s personal finance tips will give you a target goal to work towards on your journey to financial success.