The Building Blocks of Wealth

Building long-term wealth does not have to begin with complicated financial strategies. For athletes and families, the foundation often starts with simple rules that make money easier to understand and easier to manage.

This article is based on educational material provided by The Seiler Group of Raymond James, focused on two basic principles: the Rule of 72 and the 50/30/20 rule. One helps families understand how money can grow over time. The other gives a basic framework for how income can be divided between needs, lifestyle and savings.

The Rule of 72

The Rule of 72 is a simple way to estimate how long it may take an investment to double in value. The formula is straightforward: divide 72 by the expected annual rate of return.

For example, if an investment earns 8% annually, the Rule of 72 suggests it may double in about nine years. If an investment earns 12% annually, it may double in about six years.

This is not meant to be a perfect prediction. Investment returns are not guaranteed, and markets do not move in a straight line. But the rule helps families see why time and compounding matter.

For young athletes, that lesson is important. Money invested early has more time to grow. A dollar saved and invested at 18, 19 or 20 may have decades to compound before retirement.

Why Starting Early Matters

Athletes can have unusual earning timelines. Some may earn NIL income in high school or college. Others may earn larger amounts during a short professional window. Many will have income that changes quickly from year to year.

That makes early planning important. The Rule of 72 helps families understand that wealth is not only built by chasing the highest income. It is also built by giving money time to work.

The earlier an athlete learns to save and invest responsibly, the more flexibility he may have later in life. That flexibility can matter after football, during a career change, when starting a business or when supporting family goals.

The 50/30/20 Rule

The 50/30/20 rule is a simple budgeting framework. Under this approach, 50% of income is allocated to essential expenses, 30% is used for lifestyle and discretionary spending, and 20% is dedicated to savings and investments.

Essential expenses may include housing, utilities, groceries, insurance and transportation. Lifestyle spending may include dining out, entertainment, travel, hobbies and other wants. The savings and investment bucket can help build emergency reserves, retirement assets and long-term financial security.

For athletes, the exact percentages may need to change depending on income, taxes, family responsibilities and career stage. But the framework is useful because it teaches discipline.

Budgeting Is Protection

A budget is not just about restriction. It is about protection.

When money starts coming in, it can be easy to spend based on emotion, pressure or lifestyle expectations. A simple structure helps families slow down and decide where the money should go before it disappears.

For an athlete earning NIL money, endorsement income or contract income, the savings category should also account for taxes and future obligations. Money that looks available today may not all be available once tax bills, fees and expenses are considered.

That is why a budgeting rule can be helpful even when the numbers are not perfect. It creates a habit of separating needs, wants and future planning.

Combining the Two Rules

The 50/30/20 rule helps create consistent saving and investing. The Rule of 72 helps show the long-term reward of giving those investments time to grow.

Together, they create a simple foundation: control spending, save consistently, invest with a plan and let compounding work over time.

For families, these ideas are not about getting rich quickly. They are about building habits that can support long-term stability.

The Family Takeaway

Athletes and families do not need to understand every financial strategy on day one. They do need to understand the basics.

The Rule of 72 teaches the power of time and compounding. The 50/30/20 rule teaches spending discipline and consistent saving. Together, they give families a practical starting point for building wealth.

The earlier athletes learn these lessons, the better prepared they can be when bigger financial decisions arrive.

This section is educational and should not be read as financial, legal or tax advice. Families should consult qualified professionals for advice specific to their situation.

For questions, contact Joe Brauner at The Seiler Group of Raymond James.