Kobe Bryant’s all-star finance game

Despite winning five NBA championships, owning an Olympic gold medal and holding countless basketball records, former Los Angeles Lakers legend Kobe Bryant has some regrets about his career.

 

Unlike his fade-away jump shot, Bryant wasn’t born with the natural gift of money management. Even though he retired last season with $680 million in salary and endorsements over a 20-year career, Bryant wishes he handled his cash flow better along the way.

Considering he entered the NBA straight out of high school at age 17, and then signed a three-year deal with the Lakers worth $3.5M, he was almost certain to make a few mistakes with money. But he didn’t chalk them up to youthful indiscretions - he used them as lessons.

Letter to a young Kobe

Bryant shared an open letter to his 17-year-old self and published it on the Players Tribune - an athlete-founded media company Bryant has invested in.

The letter touched on a range of topics from selfishness to his relationship with his parents. But the main thrust of his self-directed correspondence was the importance of investment at a young age.

“When your Laker dream comes true tomorrow, you need to figure out a way to invest in the future,” opens the letter. “This sounds simple, and you may think it’s a no-brainer, but take some time to think on it further.”

Instead of showering his friends and family around him with money and gifts, he writes, he could have been smarter and invested in their future success. Material possessions may bring temporary smiles, but happiness is found in financial independence and growth.

Bryant’s central theme is about investing in your future self – and that’s more than just money. He is investing in lasting relationships and personal fulfillment.

Manage money like a pro athlete

Bryant isn’t the only pro athlete to stress thinking long term as early as possible.

David Heide, who heads a wealth management firm that oversees 35 pro athletes, echoes the belief that it’s important to set your investment plan early on in your career.

He even has some more pointed tips for the young athlete that could work for the young anyone. Those include:

• Write down your expenses and find out how much you can live on.
• Always have a Plan B.
• Don’t fall victim to high-risk investments or get-rich-quick schemes.

As for Bryant, he’s proving to be more than an athlete gazing into the rear view mirror. He’s embarked on the next chapter of his career by launching $100M venture capital fund that will focus on investments in the technology, media and data industries. Through his VC firm, Bryant Stibel, he’s already invested in over 50 companies including sports energy drink Body Armor and legal tech firm LegalZoom.

Which brings up another piece of advice that underscores Bryant’s letter: learn from your mistakes.