Money is relative.
You can have it. Or not have it.
I've seen it come and go for some. I've spent more than the past 10 yrs in the financial industry. I'd like to think that I have an idea of how money works.
There has been a disturbing trend of the separation of money and athletes. I will be the first to say that athletes are paid a LOT more money that I make (and probably you too). Yet, there's a trend of prominent athletes (Lenny Dykstra, Antoine Walker, Allen Iverson, & Terrell Owens...just to name a few) who are going broke. How does someone who has made MILLIONS lose their money? It's a lot easier than you may think. We live in a culture where it's celebrated to be BALLIN. I'm all for BALLIN...but I'd advise any athlete to ball on a budget. Allow me to impart some wisdom on you ballers...
1. DON'T BUY A BUNCH OF CARS
This may be hard for some people to understand but you don't need a fleet a cars. Two...maybe 3. Cars have no appreciation value. The value decreases even more when you "trick" the cars out. If I had millions, I'd have 3 cars...that's it. At the end of the day, you can only drive ONE at time.
2. DON'T INVEST IN A BUNCH OF HOUSES
It's ok to buy a house for your mama. There's nothing wrong with having a house or 2 for yourself. But that can be tricky. The housing market is still unstable. Don't buy a house today that you can't resale in 3-5 yrs and make a profit
3. UNDERSTAND HOW BUSINESS WORKS
You have to understand how YOUR money works. Make your money work for you. Not the other way around. Ignorance can never be an excuse. If your financial adviser and accountant can count your money...and you can't...guess who's gonna be broke????
4. SLASH YOUR PAYROLL
I'm amazed at how many athletes have friends and family members who are on their payroll and they do nothing. Personal chef, barber, event planner...are all some of the pseudo titles that you'll hear from time to time. You can't pay for everybody. I understand the feeling of not wanting to disappoint your "posse" or "click" but you have to be practical about how you spend your money.
5. GROUPIE LOVE
If you have money, the groupies will come. Athletes are quick to talk bad about groupies but they are just as guilty. Some chicks are looking for a good time. Others are looking for a meal ticket. They know if you get them pregnant, they'll be "set for life." I remember an old head told me when I was young that "a child is a million dollar investment." Guess that means ole 12kyle is worth 4M! LOL. Seriously, child support is no joke. It's hard to fathom why an athlete would have to pay 10k per month for a baby who can barely walk. But that's the rules. Before you lay down, think about the consequences.
It's ok to buy a house for your mama. There's nothing wrong with having a house or 2 for yourself. But that can be tricky. The housing market is still unstable. Don't buy a house today that you can't resale in 3-5 yrs and make a profit
3. UNDERSTAND HOW BUSINESS WORKS
You have to understand how YOUR money works. Make your money work for you. Not the other way around. Ignorance can never be an excuse. If your financial adviser and accountant can count your money...and you can't...guess who's gonna be broke????
4. SLASH YOUR PAYROLL
I'm amazed at how many athletes have friends and family members who are on their payroll and they do nothing. Personal chef, barber, event planner...are all some of the pseudo titles that you'll hear from time to time. You can't pay for everybody. I understand the feeling of not wanting to disappoint your "posse" or "click" but you have to be practical about how you spend your money.
5. GROUPIE LOVE
If you have money, the groupies will come. Athletes are quick to talk bad about groupies but they are just as guilty. Some chicks are looking for a good time. Others are looking for a meal ticket. They know if you get them pregnant, they'll be "set for life." I remember an old head told me when I was young that "a child is a million dollar investment." Guess that means ole 12kyle is worth 4M! LOL. Seriously, child support is no joke. It's hard to fathom why an athlete would have to pay 10k per month for a baby who can barely walk. But that's the rules. Before you lay down, think about the consequences.
This is the golden rule that all athletes must remember...As a professional athlete, you have the best TEMP JOB in America! Nobody plays forever. It doesn't matter how great you are, one day you won't be able to play. And when that day comes, you can't earn that check. It doesn't matter if you make 20M a year. There will come a time that you won't earn that. If you don't take care of your money, you're gonna be in trouble. Money is relative. Most people spend/or save as much as they make make. If you make 5M a year, you'll live the lifestyle of a person who makes that kinda money. The same goes for someone who makes 40k a yr. If you don't adjust your spending habits before you retire, you will struggle financially. That goes for millionaires and us hundredaires. LOL
Always remember what most of us were told when we were young..."A fool and his money shall soon part."
