Making lots of money and still going broke

By 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.

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8 thoughts on “Making lots of money and still going broke”

  • Hi bro, that video sure is a sad reality of athletes and celebrities who failed to look ahead. It’s amazing to hear Romel Adducul’s desire to help young and promising players from his alma mater San Sebastian how to save as early as now. Romel is keen on taking an assistant coaching post should he fail to get any takers once his contract with Globalport ends.

  • I remember hearing about this from Dave Ramsey a long time ago. I always warn people that the amount of money doesn’t matter very much if you don’t know how to manage it.

  • Yeah, it ‘s real sad.

    I used hear about a big time NBA player “suddenly” broke just a short while after retiring and wonder how they did it.

  • Thanks for sharing these to us, Sir Randell. It’s a similar story of those unlucky souls who won Millions in a lottery without the proper foundation and mindset about personal finance. I watched this over an hour YourTube video. Readers, you should too.

    More Success to ALL your Readers and followings, Sir Randell

    Stay Remarkable,
    Red Denal @ Truly Rich Club Review

  • Hi Randall,

    I heard and read stories of Lotto winners who end up broke after a year here in the country. I also read news about those shows in U.S that flipped old houses and turned them really good and expensive and doing it for free to owners, they end up being broke as well. Indeed financial education is very important to all people. You’re doing a good job Randall and I hope many people will learn from you.

    Sam
    FiliPreneurs.com
    http://www.filipreneurs.com

  • It’s all a matter of people just not knowing how to budget and live within their means. It doesn’t matter if you make 40,000 a year or 400,000 a year, without proper budgeting, you’ll still be broke.

  • Hi Mr Randall this is da 1st time i read your colums in Inquirer, im inspired in wat you wrote, i think i will follow your colums from now on, can u e mail me when never you have free seminar so i can attend to, to learn more about investment and financial planing, thank you and more power to you.. God bless

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Making lots of money and still going broke