What is Digg?274 Comments
- rawg, on 06/06/2008, -0/+133I think that most athletes, celebrities and anyone else newly rich don't understand the basic idea of building wealth. If you're spending as much as you earn, then you're still living check to check no matter how big each check is. Real wealth comes from putting your money to work. The key is to delay your spending and put all of your money into investments first. Then later you can live off of the returns on those investments. That way the money will never run out.
It's really very simple. For example, if someone gives you some sheep, don't eat the sheep right away or invite your friends over to have a sheep eating party. Let the sheep breed for a season until you have a whole bunch of sheep, then start picking some off a few for lamb chops. That way you'll never run out of sheep and your base of sheep will continue to grow and soon you'll be a sheep millionaire. That's a lot of sheep. sheep. - inactive, on 06/06/2008, -9/+76That ***** goes right to their heads and they think they have unlimited funds and don't listen to their financial advisor's advice. Bill Gates makes these guys look poor, but he probably spends less than these fools do percentage wise.
- anderzole, on 06/06/2008, -2/+55An interesting discussion. First of all, people need to remember the insane amount of taxes these athletes pay. Kevin Garnett may earn 20 million dollars but might pay upwards of 10 million in taxes. Though still a lot of money, perhaps in the mind of the athlete, they still spend as if they have 20 million.
Also, spending millions on jewerly and cars is basically a waste of money. Throw in entourages, partying, and multiple homes and you've got a recipe for squandering millions at a supersonic pace.
One thing I've always been confused about is athletes who make extremely poor investments in the fields of real estate and finance. An athlete will go broke and you'll read about how he lost 4 million on failed investments in corn. WTF?! Sometimes it seems that athletes with multi-millions invest too much of their money in shady schemes to earn a high return quickly. Instead, they should invest more conservatively and let their vast wealth make money for them.
ESPN had an interesting piece a few weeks ago about NBA athletes who go broke because they're always trying to 1-up the other guys in the locker room when it comes to bling, cars, houses, and extravagance. - TehMuff1nM4n, on 06/06/2008, -2/+543 words.
Diamonds. in. teeth. - cawpin, on 06/06/2008, -2/+54*raises hand*
- Senturion, on 06/06/2008, -1/+39Rims.
http://www.youtube.com/watch?v=RmrjX6NL0u8 - arunforce, on 06/06/2008, -1/+34If you have 1 million and you spend 100k, you have spent ten percent.
If you have 50 billion, and you spend 5 billion, you have spent ten percent.
No *****. Who could sanely spend 5 billion. - suckaPU, on 06/06/2008, -1/+34the NBA basically plucks them straight out of the hood and they have no idea how to live a legitimate life
- derble, on 06/06/2008, -1/+32"Don't Buy Stuff You Can't Afford" (SNL):
http://consumerist.com/consumer/clips/snl-skit-don ... - inactive, on 06/06/2008, -11/+39Hmmm, seems like NBA players are dumb ***** and you can thank the hip-hop culture for that. Not all athletes are like that.
- Sornos, on 06/06/2008, -1/+28I could try.
- laserob, on 06/06/2008, -1/+26I'm no analyst, but I think the same might possibly apply for pigs and maybe a couple other animals.
- azbmr, on 06/06/2008, -3/+27Bill gives a LOT to charities.
- muddo, on 06/06/2008, -1/+24michael vick understood wealth building. he invested in dogs that were worth around $5000 a pop.
an example for us all - inactive, on 06/06/2008, -2/+24Stab in the dark: Because they are stupid?
- IAmTheGuy, on 06/06/2008, -2/+24Because cocaine is a helluva drug.
- nbrntrt, on 06/06/2008, -4/+25I think we need to encourage this culture of 1-iup... maybe in a year or two we can get the number up to 75% or higher!
Sorry I just think athletes make way too much money for what they do. Try working 8-10 hours your whole life only to come out with half or less of what they make in 1 year. - jasdf, on 06/06/2008, -3/+22Well said. People always give me crap because I save so much money, we'll see who is laughing in 20 years.
- Conwaysb0718, on 06/06/2008, -1/+17Should anyone want to fund my effort, I would certainly be willing to try.
- kavutu, on 06/06/2008, -7/+22To much bling bling. Got me no ching ching so I got me no bling bling!!
- darny, on 06/06/2008, -1/+16Tall people eat more?
- Retrospekt, on 06/06/2008, -0/+15Because they spend so much cash on luxurious cars and enormous mansions, and do not think about what can happen to them in the future?
That's just a guess, though. - aladrin, on 06/06/2008, -0/+14Of course he spends less percentage wise. They spend 100%. He doesn't. Duh.
- digthebest, on 06/06/2008, -8/+22I bet Yao Ming won't go broke. He came from different culture. Maybe they can get something good from him.
- inactive, on 06/06/2008, -1/+13Ehhh I wonder what the % is for the average person 5 years after they stop working the only job they ever made a lot of money on. I know former CEOs who live in 1-bedroom apartments... once the spigot is cut off a lot of people are just lost. Investing is pretty hard for most people, apparently. I've been told by pretty good investors that your average investment adviser, after taking his fees, gets you poorer returns than just investing in index funds and in a lot of cases you get swindled or otherwise lose money due to crappy advice.
- Pstmann, on 06/06/2008, -3/+15 I'm not really sure but I don't think Johnny Unitas or Dorothy Hamill were hip-hopping NBA players.
RTFA. - Klak, on 06/06/2008, -1/+13Sixty Percent of servers are broke within 5 minutes of making the dig front page
- Larsonal777, on 06/06/2008, -0/+12maybe its because black people (ok hip hop cultured black people) aren't used to having money... when they do they like to flaunt it... on things like big SUVs with RIMs. People don't get money by spending it especially on big SUVs with RIMs. Seriously what a crappy investment unless its an old classic car... it drops in value by about half as soon as you drive any car off the lot.
You know the mid to upper mid class of america lives in the suberbs... have a nice job that pays between 40 to 100 grand a year (anyone with a college degree can get if they work at it)... they drive regular cars ok regular nice cars... buy big but not too big of a house... maybe by a nice boat to go to the lake with... and they mow their own yard... wipe their own ass all that jazz... but they all started by spending way less then they make until look they have enough money in the bank that its making as much as a third salary for them (if the wife is working that is). Most of americas millionares live in your backyard not spending all their money.
Its called living comfortably... not spending money to make people think they want to be you... a dumb ass. - Mast3rDigg3r, on 06/06/2008, -2/+13professional athletes work 8-10+ hours a day. They don't only play games you know.
- BryanG412, on 06/06/2008, -3/+13It's because they are black, and when black people get large sums of money they tend to invest in rims. As Chris Rock says, black people will put rims on anything, even a toaster.
- Conwaysb0718, on 06/06/2008, -1/+11you make 10 million in one year and dont invest ***** and end up poor, its your own damn fault.
- Scrappy1850, on 06/06/2008, -1/+10Dorothy Hamill can bust mad rhymes and Johnny U's rims are bigger than your house, *****.
- kingmanic, on 06/06/2008, -1/+10Thats his house. Chinese people (myself included) Will spend on a house but spend as little as possible otherwise. I have an acquaintance with a networth in the 7-8 digit category who cleans his own toilets in his business and complains if the diner bill has a single drink more then ordered. He wears cheap no-name cloths, clips coupons, brings a brown bag lunch, and buys second hand cloths for his kids but wears a rolex, sends his kids to private school and drives a Lexus. We do have different values.
Yao Ming may have a massive house but it's somewhat difficult to extrapolate that into the idea he has poor finances or that he doesn't exist in a different culture. - stix213, on 06/06/2008, -0/+8Problem is these athletes have 1 million but spend 5 million without seeing anything wrong until the bills arrive.
- HoratioHellpop, on 06/06/2008, -0/+8but the NBA also offers schooling on finance basics and investing, etc. Apprarently, those classes get skipped a lot.
- johnedc, on 06/06/2008, -2/+10Montgomery Brewster could do it, I'm sure.
- ICSU, on 06/06/2008, -1/+8There is saving and then there is stinginess.
- liuite, on 06/06/2008, -1/+8most people who inherit some money or a small lottery jackpot blows it within 5 years also. usually with larger sum, there is estate planning/trust/financial advisors involved.
- sgtpppr, on 06/06/2008, -1/+8It does when you also pay all your friends and family and realize you have a 10 million a year payroll on a 10 million a year paycheck.
- mahdaeng, on 06/06/2008, -0/+7I dunno. Rodents and rabbits give you a faster ROI.
- boardthis, on 06/06/2008, -0/+7the shawn kemp factor can't help either.
15 kids with 10 different mothers will strip away any amount of dollars that can be earned in the NBA. - Scrappy1850, on 06/06/2008, -2/+9he spends all his money on orange chicken
- Ramenhood, on 06/06/2008, -8/+14It's because most are black, and black people aren't good with their money.. it's statistics not racism.
- scotishstriker, on 06/06/2008, -1/+7with most of his money going to the Chinese government i wouldn't doubt it
- labizau, on 06/06/2008, -1/+7"It is hard to believe that MC Hammer, Mike Tyson, Evander Holyfield and now Ed McMahon are broke...Lavish spending and entourages were probably the downfall for the first three for sure."
Come on. We all know McMahon's entourage spent millions on hookers and blow. - inactive, on 06/06/2008, -1/+7Me no dum-dum. You dum-dum. You bring me gum-gum?
- ChromaVita, on 06/06/2008, -1/+7Stab in the dark? Are we talking about OJ here?
- inactive, on 06/06/2008, -0/+6What's with all the tattoes on NBA players these days? What's next, diamond encrusted basketball shoes? Strippers booty poppin' on the sidelines instead of cheerleaders?
- floppyparty, on 06/06/2008, -3/+8From the article:
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I think there are several reasons why so many athletes “go broke”. First, whether it is a lottery winner, an athlete or a star entertainer, if they are not equipped with the knowledge on how to make and save money they are in trouble. When they didn’t earn it through disciplined business practices and they don’t have those skills they usually go through it quickly.
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*****, they are retards. Let's say you win the lottery, and win 10 million after taxes. If at any point you declare bankruptcy after that, you should just shoot yourself in the face. - wizzroom, on 06/06/2008, -1/+6society must intervene to save all these athletes from this path of self-destruction. i propose starting a support group to help these lost individuals. something must be done about this dire problem.
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