“It is very symbolic, because 15 years ago, my first internship was in the financial sector, at the company Invalda.” At that time, it seemed that my career was going to be in the financial sector, and motorsport, if I could afford it, would be just a hobby. However, it happened that motor sports became my main activity, but the finances did not disappear either”, says V. Žala.
The racer, who graduated from accounting and finance studies in the United Kingdom, is actively supported when he participates in the “Dakar” rally, where he became the first Lithuanian racer to win the marathon speedway a few years ago. Currently, V. Žala is preparing for a new challenge – he will start in the round of the World Rally Raid Championship in Portugal.
A sport that requires a lot of money
V. Žala says that racing sports requires a lot of expenses. If in some sports, for example, basketball or football, the majority of the budget is made up of the salaries of the athletes, then in the budget of the racing team, the majority of the funds are provided for competitions and equipment.
“This sport is very financially demanding. First of all, this sport requires a car that can be raced. The higher level of competition you want to race, the more expensive and better equipment you need. I work full time, although racing only takes up maybe 5% of my time. all the time. Everything else is work to form a budget, in short, to raise funds to race for. Money determines a lot in this sport, often it is even the most important indicator. The more perfect the technique, the faster it is, the more expensive it is,” says the racer.
According to him, one of the top priorities of a racing sports team is planning the annual budget. It is necessary to know exactly how much income will be received, how much expenses will be required. Since the income comes from different partners and activities, it is necessary to arrange their use properly. V. Žala adds that the need for financial knowledge often catches up with him in life and in completely unexpected places.
Financial planning is not just necessary, it is necessary
“The hardest part is the uncertainty. We have a different cooperation and budget structure with each partner: the financing schedule is different, the cash flows are different. Because of this, cash flow can sometimes become quite chaotic, so it takes discipline to properly plan your spending. I have to make sure that the cash flow reaches the team when it is needed. For example, so that I don’t have to pay the entry fee to the organizers of the Dakar race, and at the same time there is a hole in the bank account. Financial planning is not just necessary, it is necessary”, the interviewer assures.
According to him, the driver’s form depends on the kilometers traveled in the competition. The more races you participate in, the better your shape is, but every kilometer is converted into euros spent.
“More than once we did not fit into the financial framework. In such cases, the situation has to be solved in different ways: sometimes we frantically look for additional income, sometimes we save. Such situations can happen practically every year,” the interviewer adds.
A regular salary is an aspiration for now
According to V. Žala, there is often no time left to think about personal finances while the whole life revolves around racing. In the life of a racer, the sports budget usually overshadows the importance of personal finances, says the interviewer.
“I like to say that the racing budget is the money I spend on the muffler. When I got into this field fifteen years ago, I realized that it would be naive to expect that I would build a house or accumulate a solid pension from it. I never had hopes that this would be a profession that would allow me to earn a lot of money. I have formed other goals – I want to achieve something in terms of sports. As long as I cover my current expenses, have a roof over my head and can go on vacation several times a year, then the most important needs are met and that’s enough for me,” emphasizes V. Žala.
True, he mentions that the most successful racers are nevertheless “exempted” from financial planning and can enjoy the bread of a salaried employee.
“Of course, sometimes I dream that I will reach the level where I will be invited by a factory team to race a team car and get paid for it. This is the aspiration of any racer”, says V. Žala.
Read more about investing, saving and managing personal finances in the 15-minute column “Relax about money”
#Played #Harm #racing #sitting #excel #budgeting #Business
2024-04-15 01:36:21