How the Rich Go Broke...

[CriminalScience]

How The Wealthy Go Broke...

1. Curt Schilling Says He Stands To Lose All $50 Million In
Savings From His Playing Days:
http://www.businessinsider.com/curt-schilling-broke-2012-5

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2. Arantxa Sánchez-Vicario accuses parents of taking her £38m fortune:
http://www.guardian.co.uk/sport/2012/feb/08/arantxa-sanchez-vicario-accuses-parents

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3. Lenny Dykstra's Business Failings Cost Him $50 million.
Ordered to stand trial:
http://espn.go.com/mlb/story/_/id/6896893/lenny-dykstra-charged-indecent-exposure-los-angeles

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4. Mark Brunell Facing Financial Crisis:
http://aol.sportingnews.com/nfl/story/2011-11-02/jets-backup-qb-mark-brunell-facing-financial-crisis

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5. Robert Swift, Who Made $11 Million, Leaves Foreclosed House Covered In
Bullets And Feces:
http://www.businessinsider.com/robert-swift-leaves-foreclosed-house-trashed-photos-2013-3

 

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[infinitus]

There is also drugs, alcohol, litigation etc.....but last time I checked divorce seemed to be a big segment of these reasons

 

[Nomad]

Heh, no.5 made me think he went round the house taking dumps on the floor or something. They were just talking about dogs

 

[DeletedUser2]

It’s something like 78 percent of former NFL players, two years after their last game are either bankrupt, divorced, or unemployed,†Ruettgers told ActionNewsJax.com.



what a statistic

 

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[limitup]

Yeah I've seen this happen with myself and lots of people I know. People who are successful at something tend to develop a certain sense of confidence, and often a feeling that they can be successful at just about anything. Then they go off and get involved with things totally unrelated to how they first made their money, and find that's often not the case. I mean if you think about it, it makes sense. The fact that someone made millions playing a sport has zero correlation with whether they'll be successful with X business or not.

 

[Milenko]

Yeah I've seen this happen with myself and lots of people I know. People who are successful at something tend to develop a certain sense of confidence, and often a feeling that they can be successful at just about anything. Then they go off and get involved with things totally unrelated to how they first made their money

This describes the last three companies I've worked for. They didn't appreciate what led to their success the first time around and thought that one hit made them competent to enter (often multiple) markets they didn't understand. The first two companies are out of business and number three is losing money on everything they've tried since.

 

[EastWind]

I really don't care how the rich get broke, I care much about how the broke get rich.

With that said, not going broke is very easy. All it takes is common sense.

Stay relatively frugal, spend less than you make.

You can't spend more than your yearly passive income. Period.

Be a responsible and upstanding person of character. No over drinking, drugs, drag racing, reckless driving, fighting, etc.

Avoid lawsuits

Avoid gold diggers/partners that don't share the same money values as you.

Avoid leeches, be they friends, family, whoever. People that are ready to take but never give.

You don't have to be rich to apply the above, you can make $30k a year, and the above still applies.

 

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[Skys]

I really don't care how the rich get broke, I care much about how the broke get rich.

With that said, not going broke is very easy. All it takes is common sense.

Stay relatively frugal, spend less than you make.

You can't spend more than your yearly passive income. Period.

Be a responsible and upstanding person of character. No over drinking, drugs, drag racing, reckless driving, fighting, etc.

Avoid lawsuits

Avoid gold diggers/partners that don't share the same money values as you.

Avoid leeches, be they friends, family, whoever. People that are ready to take but never give.

You don't have to be rich to apply the above, you can make $30k a year, and the above still applies.

You are confusing the words easy and simple. Example, sure, losing weight is simple. All you need to do is eat less, exercise more. Still, a lot of people fail at doing that. Not going broke is perhaps simple, but it's not easy. Same goes for making lots of money, the concept is simple. MJ describes it pretty well in the Fastlane millionaire. I would not call it easy to create passive income, would you?

25 % of start ups fail within the first year, it doubles within 5 if I remember correctly. The concept of money in, money out is simple. But not easy.

 

[CEBenz]

25 % of start ups fail within the first year, it doubles within 5 if I remember correctly. The concept of money in, money out is simple. But not easy.

I absolutely despise that statistic. It is far too general and lumps all businesses into one category regardless of field, CEO/proprietor experience and/or experience, cause of failure, etc... In other words, to my thinking, it's a meaningless statistic.

 

[andviv]

sure, losing weight is simple. All you need to do is eat less, exercise more.

Funny comment. I am eating more and exercising less and I am losing weight as never before! (don't ask me how or I will be forced to sell you a membership to my new MLM)

I really don't care how the rich get broke, I care much about how the broke get rich.

With that said, not going broke is very easy. All it takes is common sense.

Stay relatively frugal, spend less than you make.

You can't spend more than your yearly passive income. Period.

You are talking about logical thinking, but we humans are not logical, we act in impulses and based very heavily on feelings and emotions.

 

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[CriminalScience]

I really don't care how the rich get broke, I care much about how the broke get rich.

If you don't care then rest assured you will be joining that group above. I want to know how to make money, but I also want to know how to keep it. And that second lesson is where many people fail.

 

[DeletedUser11]

Most guys in the NBA/NFL/singers/rappers go broke because the buy 10,000$ bottles in the club and they buy cars and houses for the friends and family. Thats how mc hammer did it anyways.

Or you could just bite off someones ear off and buy pet tigers like Mike Tyson.

[video=youtube;efzKNh-_poU]http://www.youtube.com/watch?v=efzKNh-_poU[/video]

 

[CriminalScience]

I will have to watch this...
"30 for 30" Broke (TV episode 2012) - IMDb

 

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[MooreMillions]

It’s something like 78 percent of former NFL players, two years after their last game are either bankrupt, divorced, or unemployed,” Ruettgers told ActionNewsJax.com.



what a statistic

And the percentage is similar for NBA athletes after 5 years.

Most guys in the NBA/NFL/singers/rappers go broke because the buy 10,000$ bottles in the club and they buy cars and houses for the friends and family. Thats how mc hammer did it anyways.

Or you could just bite off someones ear off and buy pet tigers like Mike Tyson.

[video=youtube;efzKNh-_poU]http://www.youtube.com/watch?v=efzKNh-_poU[/video]

Actually, almost, but not quite.

The first reason is most athletes come from environments where money management is not an issue because there is little to manage.

Then they get an agent, who doubles as your financial advisor (trust me, I know. I have a very close cousin that played in the NFL 9 seasons, PLUS a plethora of athletes from my home town) which an athlete should never do.

Next, they take care of friends and family unwisely AND buy too much house for themselves, all the while not understanding that as an athlete these are THE highest earning years of your life.

Now, for musicians, the same applies, but it goes for right brained people (creatives) in general. While they need a basic understanding of their worth, they're gift is not asset and liability tracking. They need a manager and normally they are greedy. It's a dual effort.

As for Hammer, I am a childhood friend with someone who knows him personally, yeah, he bought too much house and handful of old school's but his biggest mistake was having a HUGE heart and trying to bring the entire "hood" up with him. Great idea, just not logical.

Ok, that's about right.

 

[V8Bill]

...
No over drinking, drugs, drag racing, reckless driving, fighting, etc.

...

Well, I may as well just die right now.

No drag racing?!! WTF?! Where did THAT come from?!...lol