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60% of NBA players bankrupt 5 years after retirement

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Buckeye Buh Nim;1114502; said:
I am not equating having more money with having more tangible resources, I am saying that taking care of more money is a lot harder than taking care of a little money.
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I don't see how it is. Having a lot of money isn't like little having a bunch of kids, where they're running every which way and you have a hard time knowing where each one is at a given time. Your basic expenses for life should be the same, regardless of income: Food, housing, clothing, transportation, health. The more money you make, the nicer of these things you can afford, but you suddenly don't start having other expenses just because your income increases dramatically.

Buckeye Buh Nim;1114502; said:
I don't know you personally, and maybe you wouldn't fritter the money away, but I do know that people in general spend more as they make more.
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Right after I retired from the Air Force, I was still paying my car off ($535/month) and had a $12,000 credit card debt from putting two kids through college, helping my parents out, and some unexpected housing and car expenses. I sucked it up and didn't do a whole lot for a couple years other than make payments, but I got that shit all squared away. I have zero non-mortgage debt right now...car's paid off, credit card is zeroed out, and I even was able to finally start some significant savings. Although I make good money, I also live in one of the highest cost of living areas in the country, so it took some financial discipline to do.

Buckeye Buh Nim;1114502; said:
You cite a 100k salary figure. I know(read work with) a lot of people who think that if they just made 100k per year, they would be set for life. Yet as you probably know, this isn't necessarily the case. (note I make no assumptions that 100k is what you make, I am just using the cite to continue a point)
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Actually, I do make a tad over $100K a year, and that's why I used it for an example (plus it's a nice round number). And actually, if I don't happen to get any astronomical unexpected expenses, I am indeed pretty much set for life. In fact, I'm going to have to take over my mom and stepdad's mortgage payments within the next few months (they live on social security only, and had some big housing expenses that arose that would bury them if I didn't bail them out), and yet I'll still be fine. And it's simply because I don't live beyond my means.
 
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MililaniBuckeye;1114529; said:
I don't see how it is. Having a lot of money isn't like little having a bunch of kids, where they're running every which way and you have a hard time knowing where each one is at a given time. Your basic expenses for life should be the same, regardless of income: Food, housing, clothing, transportation, health. The more money you make, the nicer of these things you can afford, but you suddenly don't start having other expenses just because your income increases dramatically.


Right after I retired from the Air Force, I was still paying my car off ($535/month) and had a $12,000 credit card debt from putting two kids through college, helping my parents out, and some unexpected housing and car expenses. I sucked it up and didn't do a whole lot for a couple years other than make payments, but I got that shit all squared away. I have zero non-mortgage debt right now...car's paid off, credit card is zeroed out, and I even was able to finally start some significant savings. Although I make good money, I also live in one of the highest cost of living areas in the country, so it took some financial discipline to do.


Actually, I do make a tad over $100K a year, and that's why I used it for an example (plus it's a nice round number). And actually, if I don't happen to get any astronomical unexpected expenses, I am indeed pretty much set for life. In fact, I'm going to have to take over my mom and stepdad's mortgage payments within the next few months (they live on social security only, and had some big housing expenses that arose that would bury them if I didn't bail them out), and yet I'll still be fine. And it's simply because I don't live beyond my means.
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Would you say that you spend more or less time managing your finances now than when you were in the Air Force? Or do you have a deposit it and forget it attitude with your non living expenses money (retirement, etc....)

Props to you for having the discipline in getting your house in order. That puts you above average in the money management category, and quite frankly that is the sort of thing we need a heck of a lot more of than not.

Quite frankly there are a lot of people making the kind of money you make, yet not being able to handle it well, and they end up struggling in the long run as a result.
 
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One reason some they go broke is due to the "entourage" of supposedly friends that they support. Here is an interestng Wall Street Journal article on the subject:

Entourage Economics

As welterweight boxing champion Floyd Mayweather showered fans with fistfuls of $100 bills two weeks ago at the Hard Rock Cafe in Times Square, seven men, some in sunglasses, shadowed his every move. But this wasn't the stereotypical athlete posse, best known for freeloading and waking up at noon.
Mr. Mayweather's right-hand man, Leonard Ellerbe, is chief executive of a $140 million company, Mayweather Promotions, and starts his days at 5:15 a.m. Underperforming security guards, personal assistants and coordinators can be fired for offenses like ogling women or falling out of shape. "It's no different than working for Xerox," Mr. Ellerbe says.
Troublemakers, sycophants and hangers-on, your days are numbered. Athletes are turning the entourage -- once a big punch line in sports -- from liability to asset. Taking a page from veterans who have learned the hard way and from peers like 23-year-old LeBron James, whose self-started marketing company employs his three friends, players across the sports world are using a range of management tactics to eke the most profit and productivity out of their support systems.
Carmelo Anthony, the 23-year-old small forward for the Denver Nuggets, has a flowchart and presides over biannual meetings of the 10 members of "Team Melo." Skier Bode Miller, 30, chalks up his World Cup victory this year to his new, hand-picked group of coaches, agents, trainers and family he calls "Team America." (It includes his best friend as his personal chef.) Oscar de la Hoya is saving nearly $400,000 a year in food, housing and travel expenses after dropping 10 entourage members, mostly good friends. One charged an additional $2,500 every time they went to a public event, with as many as 30 events a year.

Entire article (very interesting) : http://online.wsj.com/article/SB120787358981806577.html?mod=sports
 
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