Professional gamers: 8 tips to secure your financial future

With advances in technology, more and more careers are emerging. A few years ago, the game was frowned upon and parents considered it a waste of children’s time. Only to find out later that it’s a billion dollar industry and gamers earn a lot more than regular employees.

The only downside for players is that you could be extravagant if you don’t have anyone to guide you with your finances. Professional gamblers should make sure their financial future is protected by doing the following.

Starting a business for a player might seem like a far-fetched idea, as they usually contract with a team or league that serves as their business. However, forming a corporation benefits players as it helps them separate their professional and personal interests. Thus, acting as their liability protection.

You can also use the company to apply for a tax pass. The company is also a good front for finding other business and entrepreneurship opportunities. It also shows that you are committed to your career as an esports player, and gaming companies will take you seriously.

Whether you’re freelancing or in business, having an emergency fund is vital for everyone, including gamers. So make sure you have funds set aside for emergencies.

Protect your child’s financial future by putting their money in irrevocable trusts. The advantage of this trust is that even the parents do not have access to the funds. And it will only be paid once the children reach maturity, as stipulated in the trust.

We can’t work all our lives, so you have to prepare for your retirement. Don’t wait until you’re too old to start saving, and don’t wait for your children to take care of you. Start saving for your retirement now. When you are hired by a gaming company, check to see if they offer a 401(k) and if they are a good fit for your investment. Don’t just save; ensure that the money is invested to generate more.

If your company doesn’t offer a retirement plan, consider using other retirement accounts that can help you save and grow your money. These accounts include:

  • Individual retirement account SEP-IRA (Simplified Employee Pension Plan): This is the ideal retirement account for the self-employed. Note that each year, their contribution limit changes.
  • Single 401(k)
  • HSA (the Health Savings Account)
  • Roth IRA: This is viable for people who have contributed money for retirement with other retirement accounts and still have some to spare. You can contribute up to $6,000 per year, with an additional $1,000 if you’re over 50. The advantage of this account is when you have exceeded 59½; you can withdraw the money tax-free, provided you have had your account for more than five years.

If you want a secure financial future, learn how to invest. And start as soon as possible with as little as $100. However, you must assess all of your investment options. What areas can you invest in?

  • Stocks: Buy stocks of reputable companies. You need to do thorough research to avoid investing in a failing company.
  • Bonds (government or corporate): You lend money to the government or a company for a fixed period. Government bonds are better because they carry less risk, but expect low returns. Corporate bonds are high risk and attract high returns.
  • Real Estate: You can buy properties or land.
  • Money Market Fund: Best if you are risk averse. It is safe and has a low interest rate.
  • Mutual funds are low risk and raise capital from investors to buy stocks and bonds. Mutual funds are a great way to diversify your investment portfolio.
  • Index funds: This is also similar to mutual funds, but holds the shares of a specific market index, such as the S&P 500.

Other places you can invest your money include ETFs (exchange-traded funds), cryptocurrencies, CDs (certificate of deposit), and high-yield savings accounts.

It’s best to work with an investment manager or agency that is more knowledgeable and can advise you on opportunities as they arise.

You need to keep honing your skills as a pro gamer, and YouTube is a great place to start. You have probably seen many people making millions per month from YouTube.

Why not also take advantage of this platform to create a passive source of income? You can create YouTube videos telling people how to play certain games. Or post clips playing your favorite game with your voice in the background to make it more interesting.

There are millions of blogs on the internet and people are making a splash with advertisements, paid partnerships and affiliate marketing. So why not create a gaming blog where you advise people on the latest games, the best tools to use as a gamer, the best mobile gamesthe best sites to find work, and much more.

A blog is also a great source of passive income because it establishes you as a leader in this industry. If you provide quality and actionable content, you will find many people seeking you out for consultations and even gigs.

Your brand identity is what sells you here. So make sure that what you post on your social media, blog or website matches who you are and your gaming profession.

Record your gameplays, edit them with clever and fun captions, and share them on your channels. Be sure to share your gaming highlight; you can ask your friends and family members to do the same. This will give you visibility and even give you a trend, thus building a fan base. And what does that translate into? traffic to your blog and YouTube channel, so more revenue.

You may know little about budgeting and money management as a professional gamer. So it’s best to work with an accountant to help you create a budget, manage expenses, and notify you when you go over limits. Simply taking the services of an accountant helps you stay in line.

Final Thoughts

Gambling is a billion dollar industry. Professional gamers have the chance to earn a lot of money by playing and testing games for esports companies. However, they may have nothing to do with retirement if they don’t manage their money well. If you’re a professional gambler, these tips will help you secure your financial future.

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