Is Money the Outcome or the Means to an Outcome?

WRITTEN BY: Gideon Drucker, CFP® AIF® ECA

In today's discussion, I want to explore a topic that combines two of my passions: basketball and financial planning. This post is inspired by a recent observation I shared on LinkedIn, and it's worth a read even if you care not one iota about the NBA or New York Knicks (a thesis I tested on both my girlfriend and sister!)

As a huge NBA fan and a financial planner, I was struck by Jalen Brunson's decision to forgo $113,000,000 over the next three years. For my fellow NBA aficionados it's clear that Brunson could potentially recoup this amount in his next deal, provided he remains healthy and continues to perform at an elite level. However, this isn't a discussion about salary caps, the CBA, or the second apron.

The core question here is: do we view money as the end goal, or as a means to achieving a more fulfilling life?

Jalen Brunson's contract extension, valued at a guaranteed $156,000,000, is undoubtedly life-changing. It's a sum that would significantly alter the lives of most people, even more so when considering his endorsements and previous contracts.

But what if Brunson's decision wasn't just about the numbers? What if he prioritized other aspects of life over the additional financial gain?

Maybe he just decided that controlling his surroundings, lifestyle, and who he spends his time with was worth more than the additional marginal dollar.

Perhaps rather than the dollar amount he considered his:

Lifestyle and Location: The appeal of living in New York City, one of the world's most vibrant cities.

Personal Relationships: The joy of playing alongside college friends and having his father as his Assistant Coach.

Career Aspirations: The opportunity to win at the highest level and become an icon in New York.

Peace of Mind: The security of locking in a nine-figure contract, mitigating the risk of injury and potential future earnings loss.

This decision could also reflect a deeper understanding of long-term financial value beyond the immediate numbers. The branding and optics of such a move can open doors and create opportunities that far surpass the upfront sticker price. As we all know, sometimes gross salary doesn't tell the whole story compared to long-term growth and potential.

Or, maybe, I'm just an excited Knicks fan eagerly anticipating the next season!

Bringing it Back to Our Financial Journey:

In our financial planning journey with clients, we often delve into the context surrounding various decisions—whether to buy a new home, transition from a two-income household to one, pivot careers, or decide when to take a break or travel more. These discussions are crucial because the financial figures are only one part of the equation. Our goal is to help you maximize your overall life outcome by placing every element in its proper place with a thoughtful perspective.

In essence, the choices we make—like Brunson's—often reflect deeper values and priorities. Understanding these can lead to more fulfilling decisions, both financially and personally.