With the advancement in technology, more and more careers are popping up. A few years back, gaming was frowned upon, and parents saw it as kids wasting time. Only to realize later that this is a billion-dollar industry and gamers earn much more than regular employees.
The only downside for gamers is that you might be extravagant if you don’t have someone to guide you in your finances. Professional gamers must ensure that their financial future is protected by doing the following.
Creating a Company
Creating a company for a gamer might sound like a far-fetched idea because they usually contract with a team or a league serving as their company. However, forming a company benefits players as it helps them separate their professional and personal interests. Thus, acting as their protection against liability.
You can also use the company to apply for a tax pass. The company is also a good front for sourcing other business and entrepreneurship opportunities. It also shows that you are commited to your career as an esports player, and gaming companies will take you seriously.
Having an Emergency Fund
Whether working freelance or in a company, having an emergency fund is vital for everyone, gamers included. So, make sure you have set funds aside for emergency cases.
Protect your kid’s financial future by placing their money in irrevocable trusts. The upside of this trust is that even the parents can’t access the funds. And it will only be disbursed once the kids reach their maturity as stipulated in the trust.
Save for Retirement
We can’t work all our lives, so you must prepare for retirement. Don’t wait until you are too old to start saving or expect your kids to take care of you. Start saving for your retirement now. When getting hired by a gaming company, check whether they offer a 401(k) and if they match 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:
- S.E.P-I.R.A (Simplified Employee Pension plan) individual retirement account: This is the perfect retirement account for self-employed individuals. Note that each year, their contribution limit changes.
- Solo 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 yearly, with an additional $1,000 if you are over 50. The upside of this account is when you are past 59½; you can withdraw the money tax-free, provided you’ve had your account for over five years.
If you want a secure financial future, learn how to invest. And start as early as possible with as little as $100. However, you must evaluate all your investment options. What are the areas you can invest in?
- Stocks: Buy shares in reputable companies. You must conduct thorough research to avoid investing in a failing company.
- Bonds (government or corporate): You loan money to the government or a company for a specific period. Government bonds are better as there is less risk but expect low returns. Corporate bonds are high risk and attract high yields.
- Real Estate: You can buy properties or land.
- Money market funds: This is best if you are risk averse. It is safe and has a low-interest rate.
- Mutual funds are low-risk and source capital from investors to buy stocks and bonds. Mutual funds are a great way to diversify your investment portfolio.
- Index funds: It is also similar to mutual funds, but it holds the stocks in 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 better to work with an investment manager or agency who is more knowledgeable and can advise you on opportunities as they come up.
Create a Youtube Channel
You must keep polishing your skills as a professional gamer, and YouTube is a great place to start. You’ve probably seen many people who make millions a month from YouTube.
Why don’t you also take advantage of this platform to create a passive source of income? You can create YouTube videos instructing people how to play certain games. Or post snippets playing your favorite game with your voice in the background to make it more interesting.
Create a Gaming Blog
There are millions of blogs on the internet, and people are making a killing with ads, paid partnerships, and affiliate marketing. So, why not create a gaming blog where you advise people on the latest games, best tools to use as a gamer, best mobile games, best sites to find work, and much more.
A blog is also a great source of passive income as it establishes you as a leader in that sector. If you provide quality and actionable content, you’ll find many people seeking you out for consultations and even gigs.
Build Your Brand
Your brand identity is what sells you out here. So make sure that what you post on your social media, blog, or website resonates with who you are and your gaming profession.
Record your gameplays, edit them with smart and funny captions, and share them on your channels. Make sure to share your gaming highlight; you can ask friends and family members to do the same. This will give you exposure and even get you trending, thus creating a fanbase. And what does this translate into; traffic to your blog and YouTube channel, hence more earnings.
Work With an Accountant
You may know little about budgeting and managing money 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 above board. Simply taking the services of an accountant helps keep you in line.
Gaming is a billion-dollar industry. Professional gamers have a chance to earn loads of money playing and testing games for esports companies. However, they may have nothing regarding retirement if they do not manage their money well. If you are a professional gamer, these tips will help you secure your financial future.