Jul 11, 2024
While Serena Williams volleyed for historic wins on the tennis court, the legendary athlete says she was often so preoccupied with the game early in her career that she forgot to pick up her prize money.
“Is it true that you rarely collected your winnings your first year on tour and then once tried unsuccessfully to cash your first million-dollar check in a drive through ATM?” Sean Evans, host of First We Feast’s YouTube talk show “Hot Ones,” asked her during an episode posted July 4.
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“Those are all true,” Williams admitted. “I never played for money. I played because I loved the sport. I wanted to be the best. I wanted to win.”
Williams, who won 23 Grand Slam singles titles and 73 career singles titles overall, earned a stunning $94.8 million in tournament prize money, according to the WTA, before she retired from playing in 2022 — but she says her “tax guy” often had to remind her to pick up her winnings as she toured.
“I never really spent a lot of money,” she said, recounting her attempt to deposit the high-value paycheck. “I went through the drive-thru and the guy was like, ‘Uh, I think you need to come inside for this.’”
Williams is now a successful investor
Williams might not have given money much thought in the early days of her career, but she’s since sharpened her business acumen through her successful sponsorships and investments.
After hanging up her racket, she began dedicating more time toward her venture capital firm, Serena Ventures, and supporting early-stage business founders who are women and people of color.
“I learned early on that your paycheck from tennis — maybe that’s why I forgot them — should be your smallest earning,” she said in another interview on Bloomberg’s “The Deal” podcast April 30.
Even if you’re not a pro athlete raking in millions of dollars, there are some crucial steps to keep in mind as you get paid.
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1. Review your income and expenses
No matter how much money you make, it can be helpful to sit down regularly to review your income and expenses. You can record how much cash is coming in — and how much is going out.
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Consider creating a budget that includes your usual costs, like groceries and rent, while factoring in some space for entertainment or going out and leaving room to achieve for your financial goals.
This could include working to pay off any major debts, including student loans or credit card debt, or saving for a big future expense, such as homeownership or a vehicle.
2. Save for emergencies
It never hurts to be prepared for the worst-case scenario, so when you receive your next paycheck, try to set aside some funds in a savings account.
Experts typically recommend having at least six months’ worth of expenses saved in an emergency fund. If you’ve already reviewed your monthly expenses, you probably have a good idea of how much you’ll need to build up your cushion.
This can help protect you from any potential financial headwinds, such as a loss in income or an unexpected and costly medical emergency.
Read More: Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
3. Invest for your future
Consider how to set yourself up for the future at a time when you might be fully retired or are working part-time.
You can start stashing funds in an investment vehicle designed to maximize your savings, whether that’s a traditional IRA, a Roth IRA or a 401(k) plan. The earlier you start investing, the more you can benefit from compound interest and boost your earnings, so you’re not solely relying on your employment income for your savings.
It might also be helpful to chat with a financial adviser who can assess your income and expenses and help you meet your financial goals.
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Serah Louis is a reporter with Moneywise.com. She enjoys tackling topical personal finance issues for young people and women and covering the latest in financial news.
