For NFL rookies, their first paycheck may seem like an opportunity to splurge. But that’s not the case for New Orleans Saints wide receiver and return specialist Barion Brown.
After Brown, 22, received his first NFL paycheck after a training camp practice on Aug. 6, he was asked what he wanted to buy for himself and others.
“No, I’m a six-round guy,” he said. “We have to save everything we can get.”
Brown, the 190th overall pick in April’s NFL Draft, was selected in the penultimate round. He has yet to secure a spot on the Saints’ 53-man regular season roster. But so far in training camp, he’s competing for the team’s No. 3 wide receiver job and kick returner role.
Even with a strong start to training camp, Brown is not guaranteed the full amount of his NFL contract. Brown signed a standard four-year rookie contract worth about $4.67 million in May, but only a $294,016 signing bonus is guaranteed.
Additionally, NFL careers are notoriously short, often lasting only a few years, although estimates vary depending on how players are counted.
When asked on CNBC Make It what it meant to save “every penny,” Brown said he was saving money “for a rainy day.”
“You never know what’s going to happen,” he said. “You just have to have something to fall back on when lightning strikes.”
Brown doesn’t see his NFL salary as a reason to change his life.
“I feel like I have everything I need,” Brown told Make It. There’s no need to go out of your way to spend all your money.
Howard Pressman, a certified financial planner with Egan Berger & Weiner in Virginia, said Brown “would be wise to save as much as he can,” especially given the short length of his NFL career.
This lesson can also be useful for people who earn a good income early in their careers but aren’t sure if that income will last, he says. In such situations, he recommends avoiding new fixed costs that may be difficult to pay if income decreases. For example, if you take out a large mortgage or buy an expensive car, you can end up with high payments over the years.
Pressman says splurging on one-time experiences, such as travel, can be a way to enjoy some of that money without additional ongoing costs. But he recommends saving most of your paycheck if your salary increases significantly.
“Avoiding poor lifestyle habits, living below your means, and saving money are three things we can control,” Pressman says.
Do you want to get ahead at work? Next, you need to learn how to make effective small talk. In CNBC’s new online course, “How to Talk to People at Work,” expert instructors share practical strategies to help you use everyday conversations to gain visibility, build meaningful relationships, and accelerate career growth. Sign up now!
