Welcome back to Money Mile. This is part 2 of a two-part series on the Top Financial Challenges of Active People. If you missed part 1 you can check it out here.
How did your homework from last time go? Email me to let me know!
This episode will discuss challenges like race fees, life insurance, and non-racing partners. Listen in to hear the top financial challenges of active people.
You will want to hear this episode if you are interested in…
- Race fees keep increasing [1:08]
- Partner balance and bliss [3:25]
- Set a triathlon budget to keep expenses in check [5:00]
- Turn your hobby into a money maker [5:57]
- Life insurance [8:07]
- Homework [9:08]
Dealing with increasing race fees
Race fees keep getting more and more expensive every year. Now that there are more races happening post-Covid, you may find yourself spending $800+ on an iron distance race. Even though you won’t be competing in a long-distance competition every weekend, these fees can add up.
Shorter races are more affordable, but committed athletes tend to compete in these frequently. Consider how you can spread your races out to keep your expenses in check. Setting a triathlon budget is one way to ensure that you won’t overspend and break the bank on competitions.
Achieving partner balance and bliss
When your spouse doesn’t share the same enthusiasm for endurance sports as you, they may not understand the financial and time expense of your chosen hobby. If you don’t take time out to periodically discuss expectations, it could lead to issues.
One way to mitigate this friction is by having the non-competing partner choose the destination of the next big race. Then you could extend the travel to include a family vacation. Exploring a new city may even be beneficial to your recovery. Listen in to hear how.
To offset the expenses of your endurance sports habit, you could turn your hobby into a money maker. Coaching other athletes on the side or starting a competition blog could bring in some extra money to add to your competition budget. Without communication, the financial strain of triathlon competitions coupled with long hours of training away from family can cause a significant impact on your relationship
It is easy to spend a lot of money on an expensive hobby–we’ve already discussed how equipment and race fees can add up. Competing priorities can lead to conflict. You need to save for retirement, the kids’ college fund, and family vacations. Your resources may be stretched thin.
To combat this guilt and confidently spend your money, you’ll need to understand your goals and priorities. Working with a financial planner can help you set your goals and understand what it takes to reach financial independence
Life insurance is a must for endurance athletes. The chances of you actually needing it are slim, however, if you have a family, you’ll want to ensure that your loved ones are cared for in the event of a tragedy.
Understanding the right type and amount of insurance coverage is key. A fee-only financial planner can help you find the best insurance plan for your lifestyle.
Listen in to hear this week’s homework. Thanks for sharing a mile with me today. Remember, if you work out everything else will too.