Professional athletes have a long history of going broke after earning millions of dollars throughout their careers. However, it seems like now, more and more young players are getting smarter with their money. According to a report by CNBC, Boston Celtics player Jayson Tatum saves 100% of his annual salary from the NBA.
The 21-year-old basketball player will earn a base salary of $7.83 million and he will not spend a dime of it as all of it will go straight in his bank account. “All the money I get from the Celtics, I put it in a savings account,” he told Maverick Carter on Uninterrupted’s Kneading Dough. However, he spends the money that he generates through various endorsements deals. “I didn’t make all this money to save it all,” Tatum added. After being drafted, he did buy an Escalade for his mother and a Range Rover for himself.
Tatum gives all the credit to his mother for instilling in him the virtues of becoming more financially literate. “As I got older and started understanding that the NBA was coming to reality, she started talking to me about the importance of balancing all of this money,” Tatum told Carter.
“When I picked my agent, I told him I want to do as much off-the-court stuff as I can,” Tatum told the Boston Globe. “Right now I’m young, so I try to do everything as much as possible. … Tomorrow is not promised. You’re not promised the next contract. You want to save all the money you can.”
After playing only one season of basketball at Duke University, Tatum declared for the 2017 NBA draft at the age of 19. The Boston Celtics selected him with the No. 3 overall pick and he signed a lucrative contract: $30.1 million, to be distributed over four years.
This comes on the heels of reports that New England Patriots player Joejuan Williams sets aside 90% of his income toward his savings. Williams signed a four-year, $6.6 million contract earlier this year, and he says he will live as if he were making 10% of that and put 90% of his after-tax income into savings.
Watch Jayson Tatum talk about his finances below.