Here’s a quick run down on how much each of these pro athlete have tossed away:
- Evander Holyfield - $250 million earned and he is now flat broke.
- Lenny Dykstra – he is currently $30 million in debt.
- Latrell Sprewell - $96 million earned and he is now broke.
- John Daly – he gambled away $50 to $60 million dollars.
- Jack Clark – earnings and debt were not listed, but he’s bankrupt after buying luxury cars.
- Mike Tyson – he filed bankruptcy after wasting $350 million to $400 millions dollars.
Okay, I’m depressed…let’s talk about what we would have done with that kind of money instead. :-)
If we had $250 million, my husband and I would plan out the house of our dreams and pay for it in cash. It wouldn’t be too big since mansions intimidate me, but it would definitely have a big game room. We’d also pay off our cars and sell our current home. I might hire a driving service once in a while since I hate driving, but I don’t think I’d buy a big, expensive car. We’d also have a weekly maid service instead of biweekly and I’d never have to groom the dogs again. My husband would probably pay to have a Curling stadium built for the Houston Curling Club and be in every weekly league. Yes, they’d still have to pay dues for the ice, but probably half of what they pay now - that would be used to cover the utilities. We’d take some vacations and I’d still want to volunteer with dogs and for Meals on Wheels. I’d also still blog.
Hmmm…that would still leave us with about $250 million since all that could be done with the INTEREST ALONE. Argh!!!
What about you? What would you do with $250 million? Do you also want to slap these people upside the head?
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I think debt is a cash flow problem, not an earnings problem. Earning more just means that you have a bigger shovel to dig yourself a hole in, not necessarily that you can live without debt. There is alway something you can pay a lot for. It takes discipline and knowing about budgeting to really stay within your income limits, no matter the income amount. That being said, it just makes me sad that these people did not have or take good financial advice and squandered millions away.
ReplyDeleteI think Forest Gump applies here: "Stupid is as stupid does." I understand not everyone is good at managing their money. That's not the problem I have with these people. My issue is at what point should realize that you can't and pay someone to do it for you. The general public can't afford this, so they have to turn to the likes of Dave Ramsey and Suze Orman. But everyone on that list could high someone to take care of it all and they would still be rich today.
ReplyDeleteMy wife has asked on a couple of times for help in managing her allowance money, so that she has money to do the things that she wants to do. We're only talking about $160 a month, but she asked for help.
As I said in the beginning: "Stupid is as stupid does."
As for what I'd do with that much money. Make sure all family had nice houses (not mansions) paid for and maybe even set aside some money for their retirement. Probably give a good chunk away to charities too.
Julie, discipline and budgeting really would have solved their problems...
ReplyDeleteMikeS, you made me feel like a heel...yes, I'd be Pughearts main benefactor and share with my family too. Thanks for reminding me to be generous even in my daydreams. :-)
ReplyDeleteNo worries. :-)
ReplyDeleteI just couldn't come up with a way to spend $250 million. I'd have to give it away.
Funny that suddenly finding myself with so much cash has got to be one of my worst nightmares!!!
ReplyDeleteGive me 10 million and I'd quit my paying job today, buy a house that is better suited for me, give some money to family and friends, and turn myself to donate my time and money to causes I believe it. I'd be able to say no to the never-ending stream of requests and to look people in the eye saying "you're in my will, whatever is left you'll get some, but until then I need it to live my life".
A larger amount would paralyse me.
I do feel sorry for many athletes and sudden high earners because many have no clue about how to manage their money. And I hate to say it but many have turned to "professionals". Most don't really have your best interest at heart, they have their paycheck and their ego to boost. Hand over your check book to such a person and you may lose your shirt if you don't stay on top of things. That's difficult though, especially for people with little money sense.
I remember seeing a mini-documentary about Mohammed Ali. He had no sense of money at all, to the point that his financial "advisors" resorted to saying "Do you want to spend 35 Lincoln Continentals to buy this house?"... He was dirt poor when he struck it rich and could never relate to how much something "big" was worth. He knew what a BigMac cost, but any large figure was too abstract for him to grasp.
Mylena, that Mohammed Ali documentary sounds depressing...now I'm feeling sorry for him...
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