Photo credit: finance.yahoo.com
Jalen Hurts: Embracing Humility with Financial Savvy
Despite signing a staggering $255 million contract in 2023, Philadelphia Eagles quarterback Jalen Hurts chooses to live with a modest lifestyle, renting a $2,000 a month apartment in Cherry Hill, New Jersey, as reported by The Sun.
In a 2021 interview with GQ, Hurts shared, “I didn’t buy a house or anything like that when I got drafted because it was just me. I didn’t need this big place just for myself. I just got myself a little apartment. You know, something smooth that’ll last me for the time being.”
This conscious decision to forgo a luxurious home demonstrates Hurts’ commitment to financial prudence and living within his means.
Adopting a similar mindset can pave the way to achieving your own financial independence.
With the NFL season spanning only 18 weeks, players like Hurts may find that renting offers the flexibility they need. This choice exemplifies a budgeting approach that focuses on prioritizing necessities.
As noted by the [University of Pennsylvania, prioritizing essential expenses before allocating funds toward savings and luxuries reflects effective budgeting techniques.
For example, you might consider allocating 50% of your after-tax income to critical expenses like groceries, rent, and transportation, reserving 20% for savings and investments while the remaining 30% can be used for discretionary spending.
Financial advisors generally suggest keeping housing costs within 30% of gross income and car payments under 15%. Adhering to these guidelines can help maintain a sustainable financial lifestyle.
Once your essentials are managed, you can shift focus to saving and investing to expedite your journey toward financial stability.
Read more: Rich, young Americans are ditching the stormy stock market — here are the alternative assets they’re banking on instead
Outside of his football commitments, Hurts actively invests in real estate. He bought a $215,000 home for his father in Humble, Texas, followed by another property for his mother in Houston, as reported by the NY Post. Additionally, he owns a $6 million 6,000-square-foot home in Texas and the adjacent unit which cost $2.68 million.
This diverse real estate portfolio may provide a financial cushion for Hurts in the future, ensuring long-term security.
Similarly, committing a portion of your earnings to long-term investments, whether in stocks, bonds, or real estate, can fortify your financial prospects. Individuals can explore real estate opportunities through various avenues, such as investing in publicly traded real estate investment trusts (REITs), which own and manage income-generating properties and distribute rental income to investors.
Additionally, real estate crowdfunding platforms allow everyday investors to participate in the ownership of rental properties without the burden of significant down payments or landlord responsibilities.
Exchange-traded funds (ETFs) also present an attractive investment option. The Vanguard Real Estate ETF (VNQ) provides exposure to rental income from various property types, boasting an annualized return of 7.57% since its inception in 2004.
Similarly, the ProShares S&P 500 Dividend Aristocrats ETF (NOBL) focuses on companies that consistently increase their dividend payouts, achieving an annualized return of 10.71% since its launch in 2013.
This article serves as informational content and should not be interpreted as financial advice. It is presented without any guarantees.
Source
finance.yahoo.com