Making lots of money and still going brokeBy Randell Tiongson on May 31st, 2013
You’ve heard about how many celebrities have made tons of money. Celebrities makes millions in a single year and you can just imagine the fortune they have amassed after a few years in the limelight.
Huge contracts, endorsements, movie deals… and the list goes on! We don’t need to know how much money they make, we can see it in the way they live. What they can make for a few years of work is something normal people can’t make in their entire lifetime. A few years of works should make them rich for life right? Wrong!
A huge chunk of celebrities go broke after the work stops even if they have made so much money to last a couple of lifetimes. When you spend all your money and do not save some and forgot to invest them, you will go broke — despite how much money you have made in the past.
We can learn from many celebrities on what not to do. My deal is to go ahead and enjoy what you make but don’t be a fool and forget to save and invest some of the money. Even if you only save 20% of what you make, it will come in very handy when the work stops… and they will stop regardless of what you do.
Like what I say to normal people, I will say to the celebrities too — save and invest otherwise you go broke… celebrity or not.
Here’s a video from ESPN about how athletes end up broke. 60% of former NBA players go broke within 5 years after retirement. So sad.