In an industry where job security is nonexistent and compensation output does not equal the hours of input, it is important to start growing “green.” Despite a rise in industry salaries, with the current economic climate, they seem to have reached the ceiling.
It is important for assistants to set goals and invest in their future. After graduating from college and getting married, the first mission we accomplished was preparing ourselves financially. We did so by attending Dave Ramsey’s Financial Peace University through our church. This 13 week course promoted seven baby steps to achieve financial freedom:
Step 1: $1,000 Emergency Fund. For those always unexpected situations that get you thinking “Where am I going to get the money?”
Step 2: Pay down your debt. Especially recent graduates. The average person does not pay off student loans until the age of 55. Do not add new debt either! Remember that your income is your greatest asset to put to use if it is making money, not paying interest.
Step 3: Build a 3 to 6 month reserve. Most financial advisors today are recommending six months to one year savings to cover expenses in case of job loss.
Step 4: Invest 15% of household income towards retirement. Most clubs will match a certain percentage towards your 401k. Always contribute to receive the “free” money. However, many clubs make you wait one year before allowing you to participate. If this is the case, a Roth IRA is something to consider.
Step 5: College funding for children. Set a goal and save monthly similar to a mortgage. Look into Education Savings plans and 529 plans.
Step 6: Pay off your house early. Use any extra cash to put towards your mortgage payment. Paying more towards the principal will cut months, sometimes years, off of your mortgage.
Step 7: Build wealth and give. The most rewarding step to his plan.
Financial Peace University also teaches ways to budget your income and calculate your net worth. You will be surprised by how far $(average annual salary for assistant) can go, especially with the help of compounding interest.
You will constantly hear “If you live like no one else, later, you get to live like no one else!” It is the truth. After living thrifty through college, why try to live lavishly on an entry level salary and credit cards as an assistant. You would be better off to continue living thrifty and saving the extra income. The same goes to assistants transitioning to superintendents’ salaries.
I believe golf course managers and owners should learn to manage golf clubs in a similar manner.
It is important for assistants and superintendents to think towards their future. There are only a handful of superintendents that are fortunate enough to stay at one club for the length of their careers and truly benefit from a company retirement or pension.
Phillip S. Vera Jr. is senior assistant superintendent at Secession Golf Club in Beaufort, S.C.