Last Thursday, I landed in Huelva, Spain, joining my fifth professional football team. I started my professional football journey in July of 2019, two months after graduating from my master’s program at 23 with no savings, no credit, and no agent. Three years, five countries, and five professional teams later, there’s a lot I wish I had known before starting my career. Here is, My Practical Guide to Navigating Adulthood Abroad as a Professional Sportsperson.
Documentation
If you want to avoid getting deported from a country (like I did!) it helps to know when you’re breaking the law. Some clubs are by the book and others try to cut corners. Most clubs that are operating above board will send you an employment contract with terms that are mutually agreed upon before flying you to the premises. Americans can travel to most countries with a valid passport without a visa for up to 90 days. Most often, clubs will fly you to the country before starting your visa application process. In some cases, clubs will have you procure an employment visa before arriving. It may take anywhere from a couple of weeks to a couple of months to obtain a work visa. In the meantime, you are not allowed to compete in official matches or receive compensation. Clubs will then back pay your salary once your work permit has been approved and you’ve opened a foreign bank account.
Heath Insurance
Nearly all European countries have a universal health care system which you are entitled to as a resident. Therefore, medical services that your club does not offer you have access to (for example, emergency care and general practitioner visits). However, non-essential services such as physical therapy or– in many cases– dental work you have to pay for out-of-pocket. Most health insurance plans only cover necessary medical services when traveling outside of the country. Therefore, if possible, stay on your parent’s health insurance plan in the U.S. Be aware– coverage ceases at age 26.
Budgeting
Having a hold on your finances while maintaining a “normal” job is hard enough for any budding adult. Being able to make sound financial decisions while living abroad and if you’re like me, a female professional athlete who doesn’t make a lot of money, the task can seem daunting. Budgeting, however, is a great first step.
Budgeting involves creating a plan so that you maintain maximum control over your money. You can create a budget using pen and paper, an excel spreadsheet, or by using budgeting apps that track your spending. A commonly used budgeting framework is the 50/30/20 rule. In it, up to 50% of your after-tax dollars are allotted for necessities, no more than 30% on wants, and at least 20% on savings and debt repayment. A perk of being a professional athlete abroad is that generally, your expenses are low with a combination of housing, health insurance, transportation, or food being provided. This allows for a greater portion of income to go towards… wait for it… savings!
Saving
Your No. 1 savings priority should be starting an emergency fund. Emergency funds allow you to pay for unexpected expenses without going into debt (or phoning your parents). A good rule of thumb is to have enough saved to cover three to six months’ worth of living expenses. Opening a high-yield savings account to house your emergency fund is recommended to avoid dipping into your savings, earn greater amounts of interest on every dollar, and for quick access to the cash.
Your other No. 1 priority should be saving for retirement. While athletes abroad don’t have access to a 401(k) it is still possible to save for retirement. An Individual Retirement Account (IRA) is a nice place to start. Like a 401(k), savings grow tax-deferred, which means you don’t pay income taxes on the earnings as long as the money is in the account. Remember, the earlier you start saving the less money you have to save to meet your retirement goals. You can open an IRA at a bank, mutual fund, or brokerage firm.
More Soccer, She Wrote
Building Credit
If you’ve never experienced a Catch-22, try building credit from scratch. To build credit, or a history of responsible repayment, you need a credit card or loan. But in order to get a credit card or loan, you need a history of responsible repayment.
Though the reasoning is circular, all hope is not lost; there are ways to build credit. If you’re building your credit score from nothing, a secured credit card is your best bet. A secured card is backed by an upfront cash deposit that is generally the same as your credit limit. Other stepping stones to credit cards include a co-signed card or becoming an authorized user on someone else’s card. Once your credit is built up enough for you to have an uninsured credit card remember to make your payments on time, pay the amount off in full, and maintain low credit utilization (experts recommend only using up to 30% of your credit limit). When choosing the right credit card for you, don’t forget to check for foreign transaction fees.
Loans can also boost credit. Credit-builder loans, secured loans, or co-signed loans will improve your credit score as long as you pay them on time, every time.
Taxes
Alas, the litmus test of adulthood– taxes. Living abroad does not shield you from having to file taxes. US citizens are required to file a US Federal Tax Return regardless of where they live in the world, however, that does not mean they’ll actually owe any taxes. Luckily, Uncle Sam won’t make you pay taxes twice. If your host country is taxing your income then you can claim an exclusion or tax credit. You will also have to file an FBAR if your total foreign account balances exceed $10,000. Free tax filing software typically doesn’t offer the ex-pat forms you need, however, H&R Block Expat Tax Service does. You can Do-It-Yourself or file with an advisor. The DIY version, which I use, is surprisingly easy to follow and inexpensive.
Cellphone Service
If you consider yourself a Millennial or Gen Z’er, trust me, you do not want to miss this final tidbit.
Most U.S. cell phone providers will have some sort of “International Plan” that includes messaging, data, and calls in hundreds of countries. For instance, Google Fi provides international texts and data at no additional cost. I am warning you now: All of these plans are designed for temporary use. Providers will typically restrict usage after 3-9 months abroad. A simple long-term solution to staying connected is purchasing a local SIM card and plan. Most plans are inexpensive and let you choose between adding data, calls, and texts. Note, if you cancel your U.S. service entirely your number will be reassigned. I suggest purchasing a second phone, buying a local SIM card and data-only plan, and hot-spotting to your U.S. phone when not on wifi after your international plan ends (I got 9 months of service on Google Fi before getting the boot).
A note: Please consult a professional, heck, even the internet or Youtube for further research if you want to learn more. I barely scratched the surface on a lot of the aforementioned topics. A wealth of knowledge is only a Google search away.
