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Why Your Favorite Athletes Go Broke
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- Опубликовано: 25 авг 2020
- Most professional athletes suffer from a lack of knowledge in personal finance. Understanding how to budget your money, how to save money, and mastering your personal finances will save you from going broke.
Unfortunately, athletes spend their money frivolously on large houses, exotic cars, custom jewelry, and anything to help live lavishly.
When their playing careers are over, many athletes go broke because they don't follow a few key personal finance principles.
In this video, I share the first couple of reasons why so many athletes go broke following their playing careers.
You'll likely read headlines every day about another athlete having some sort of financial hardship and wonder why that's the case. The athletes sign contracts for millions of dollars, but can't seem to stay away from going broke.
When you understand how quickly money can be spent when purchasing liabilities, it makes total sense why these athletes struggling with their personal finances so much.
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The price of child support 300k (0-18 years old)
The price of wearing a condom - priceless.
🤣🤣
Or hire an escort..they're muuuch cheaper in the longrun
Or just a prenup.
wolfboy20 You will have serious diseases 🤮
@@whatsgood6440 true but using a condom and not going down on them reduces risk i suppose..
They are putting these dudes on FULL BLAST!
1. Multiple Baby Mommas + Kids
2. Taxes
As any regular dude knows you earn $100, you are not taking home $100.
3. Being a human lottery ticket for your whole generation/family.
a lottery ticket and ATM
Taxes are scams considering the rates some governments take
Most people talk about “how to get rich” when they should listen to content like this on “how to go broke!”😎
Going broke is way easier lmao
100 dude...
Deep 🤔👍
So being broke is having 10 houses, 20 cars, 10 nannies,10 wifes and 2 helicopters.. and 100 million in the bank aha ok i see your point...........................?!?!
How to get rich: Marry a pro athlete then divorce him.
Honestly, I wouldn't need a 10M mansion not when I could just have a house built to suit my needs.
Big brain.
Your mind may change if you become a billionaire...we can say it now, because it sounds so unreachable.
@@AndweleHarris there's a surprising number of multi-millionaires in my country who live relatively humble lives. It has a lot to do with culture and upbringing, and how you earned your money
@@aphroditesaphrodisiac3272 my in laws are rich as fuk , they live in the same house my wifes father grew up in, its simple
Live below your means , after 30 years they now have a crap tonne of moneh
Same
"A business partnership that has a 60% to 80% chance of ending"
That's one way to put it.
Late reply but marriage is a contract it's taught in business law
In sales, we learned about the "comfort zone". Practically everyone has one. There's a mental dollar amount and what happens when your bank account falls below it? You save, save, save until you're back in your comfort zone. What happens when your account exceeds your comfort zone? Most spend, spend, spend until they're back in that zone. An inner city kid who grew up dirt poor has a very low comfort zone so they spend like crazy because they believed they were happy before they became rich. They buy momma a house, they buy their girlfriend a huge rock. They cover themselves with more bling than a weightlifter should carry. Then they hire financial consultants who steal them blind. Once the money runs out, they still have all this acquired debt and most have no means to pay for it.
It should be mandatory for colleges to offer athletes classes in finances. Maybe the jock won't listen but it's downright criminal if the jock is never told how to manage money in the first place.
This is a really interesting comment
I agree but this should taught since middle school not college. It should be available to everyone. Even regular people fall in these situations not just athletes.
The NFL has SEVERAL programs designed to keep this from happening-But go out and watch "30 For 30 Broke" and you will be SHOCKED at some of the CULTURAL things that happen to these athletes-especialy African American ones...
How can a person reset that comfort zone?
@@gsus8788 I think high school is a better time than middle school. You will (most likely) forget about all of the lessons since then because it will be so long between when you learn it, to when you actually use it.
I think it's better to do it senior year. By that point, you will have a lot of people entering the workforce or military (who will have a lot of money right out of boot camp), and the lessons will be fresh in their mind.
Never get into a partnership where the other person is rewarded for leaving the partnership.
Marriage in America is a scam especially for the rich
Always do prenup
john superhist prenups are notoriously ineffective
Facts.
Look at how much McKenzie Bezos was awarded for her divorce "settlement".
Instantly became the third richest woman in the world.
@@johnsuperhist5219 prenup didn't save Jordan or Tiger.
@@elijahgavin6706 what about civil partnership like they call each other partner
Lack of financial literacy , most of these men come right out of the hood signing all types of things and spending all types of cash. They never keep track of it and trust other people to sign things on their behalf , who end up stealing their money LOL
Exactly. Those that stay comfortably well off have legit diversified investments and trust worthy individuals by their side.
Quantum Optimist this is why Shaq start his own business before he retire
Why is that funny?
@@easylife6348 No doubt. Magic Johnson did pretty well for himself too.
Some never had to study in high school or college, so actual reading 📚 and financial literature is so unnatural to them that they set themselves up to fail. Certain colleges do a far better job of educating athletes.
- Stanford
- Notre Dame
- USC
- Georgia
- Georgia Technology
The worst colleges are:
- Alabama
- LSU
- FSU
"It didn't have enough parking space for her 12 vehicles"
Wait... Hol up...
If you are reading this, please do me a favor and click the link... just trying to get my channel going! (2 minutes) I.O.E. (Interpretation of energy) anchor.fm/UMBUKU/episodes/I-O-E--Interpretation-of-energy-ekchqc
@TheCoffeeNut711 Cause they dont pick pro athletes for their smarts?
@@God_of_Poets nah I'll pass on your bs
If I were a professional athlete, I would never get married. I wouldn't even get married now being a regular dude. Lol
Yeah marriage is stupid
yeah buy a ring for thousands of dollars on a ring for a woman that can easily leave you and cuz of financial bullshittery leave you dirt poor
Exactly I’m not a big fan of marriage but the only way if she’s getting a ring from me if she was with my thew the struggle
Facts ... Me being in the Army and people say.. Hey what you don't get married, you will have more money and you're own space. Me: Um... I'm good
Gilberto - don't worry, nobody wants to marry you as well
These athletes could afford mansions but can't get one condom to prevent divorce problems
There are moments where condoms are the last thing on people's mind.
@@averywealthyman4194 whait what? 2 kids at 20?
@@averywealthyman4194 its easy . Marriage after pre nup
@UC4LE6uo0CrDqwkwWx7N3YBw He took the responsibility to procreate. These kids are his responsibility. A prenup also doesn't shield you from child support. Besides, he didn't specify paying child support, but providing for his kids, so he is likely still in the relationship. Damn, you're stupid as hell lol. Wear a condom or accept the responsibility of procreating.
One more thing that needs to be addressed is the alcohol and drug addictions that can take over an athlete's life. The 30 for 30 episode about this, covered that issue.
I couldn’t imagine knowing that my dad is a multimillionaire athlete with 10 kids by 8 different women. I’d just be like “damn, my mom is kind of a Ho that uses me as a meal ticket, and my dad is a fool that fell for it 8 times”
here we go again, the misogyny of vilifying women and victimizing men.
@@Idk-nc7kj calling out certain people doesn't mean he is saying all women do that, let's be honest, there are women looking to get pregnant in order to live out of child support, and atletes so dumb they don't use protection
@@carlosramos3890 ABSOLUTELY!
Your dad is a ho too.
The lesson I learned is if I'm making millions playing sports. Dont have 14 children to 8 different women and choose a childhood friend whom you personally know will like you for who you are, and not instagram models who have a narcissistic personality who only wants you for your money. Something like that
That's hard to do though because their ego would grow with their money. These people don't think long term - they are more like "I have all these millions and the "unreachable" insta models with the perfect looks are all giving me attention, so why should I settle for less?" - and even if they choose to marry the childhood friend, they will end up making tons of children with hundreds of women on the side. Same shit all over.
"Choose a childhood friend" I dont think you realize how few people have that option.
bold of you to assume anyone has a childhood friend
Didn't work out well for Jeff Bezos.
Yea he was dumb for cheating but he did know her since before he started the corporation.
@@Kurostyle21 his fault for cheating he's a sociopath i dont know how she didnt divorce him before that
My guess is 0 athletes will ever end up watching these kinds of videos. Sad, really; they could have truly amazing lives, not just an amazing several years.
They really could. Invest early and they're set for life
Videos like this should be in an orientation of sorts
Bro thank you this is some amazing content you're pulling out. I like how even though you're a business channel, you talk about other industries like the sports industry and the music industry and the business behind that. Like nobody is doing this on RUclips. I'm glad that a business channel like yours is actually talkin about this. Your channel is underrated RUclips need to start promoting more original content, that don't have to do with the search engine.
Haha...you said, "pulling out". Something these Athletes don't know how to do!
@@fergiegee7476 What you stated is very funny, but sad too. You're right unfortunately.
@@fergiegee7476 I predicted this
This issue really hits hard for me because I hate to see Black athletes go through this. Many often come from poverty so they don't know how to manage money. If they would just talk to former pros on how to manage their finances it would prevent so many problems. There's also another reason athletes go broke, scammers. Kevin garnet lost 70 million due to a so-called "financial advisor"... Tim Duncan lost millions the same way. People just see athletes as an easy target to make money off of. Excited to see the next video.
You're just not likely to listen to sound advice about ANYTHING when you're under the age of 30. But your mind and your impulses are sickeningly wide ass open to ruinous fuckery.🤑
How about just saying I hate to see ANY pro athlete go broke instead of singling out one type of athlete!? Going broke could happen to anyone reguardless of race, gender ect. Sadly.
@@JCtheComicGeek I do hate to see all athletes go broke because they could do so much good in their communities with that money. But as a black man, seeing black athletes blowing their money or being taken advantage of by friends, family, and women is especially sad because our community needs all the help it can get.
That's no excuse really.
Even a dummy can put 70% of their money into an account and just leave it there.
That doesn't take any financial education.
Not sure how you can lose $70 million, that's on you a little bit.
Biz Legacy - Ben Rush I think it's easy. They pay taxes in every locale they play. Family and friends sponge, accountants, advisers, publicists, agents and they pay for chronic injuries they incur. Then we come to the extravagant purchases.
I'm an amateur boxer, also work full-time and looking forward to go pro someday when I'm already.
Thank you for this video, it's very helpful.
Looking forward to part 2.
Gettings from Spain Europe.
good luck bro 🥊
Greetings from Malaga
Stay safe in this pandemic bro :)
Please make it bro!
Protect your head all that money means nothing when you cannot even remember how you earned it
Steps to keep your money
1. Always get prenup
2. Wear rubbers or get vasectomy
3. Dont spend on family
4. Invest invest invest
Right on everything except the sex part. Dont mess with any women period. Leave them alone. Become a Born again Christian and ask God to lead you in marriage to an honest, sincere, God fearing woman. Then you can have your millions with the covering of God.
@BARACKOBAMA what about having children in the future you won't stay young for ever you need a successor for your wealth and name
Prenups can be thrown out
Invest in what?
@@bigboss1452 real estate, stocks , bonds and others
Liabilities =broke
Assets=rich
Bad relationship with money
So by induction, wives are liabilities.
You tubers go broke ?
@@aldreato they sure are!
@BARACKOBAMA 😂😂Fear STIs bruh
I HAD TO REPLAY THIS CAUSE I WAS TOO BUSY SAYING
GOT DAAAAAAAM!!!!! OVER AND OVER
14 KIDS?? 😫🤦🏾♂️🤦🏾♂️🤦🏾♂️
This wouldn't be a problem if western society didn't ostracize financial education in schooling and such.
how is that going to help people be keeping away from materialistic whores.
Or stop blaming it on other people and be a adult and learn how to man as get your money.
@@sean1849 I understand because I've been trading stocks and securities for over 5 years; however, some of these resources aren't available to the general public. As I gradually learned how to trade options and derivatives, I accumulated weekly 20% gains, as well as gaining familiarity with buying and shorting penny stocks. Now, my account sits nicely with a rough 1900% gain in 5 years, which for me is off-the-charts good. But this wasn't always the way. In the beginning, I was knowledgeable about EMA lines, MAC-D lines, and other trading techniques. I especially didn't know about chart and doji patterns as well; nevertheless, however, I, without paying for a SINGLE tutorial, learned the tricks of the trade and started seeing consistent green in my account. Trades like TUP, CLSK, and GME have made me 1300%, 465%, and 120%, respectively, on top of MANY other trades I have done to build up my portfolio. Of course, I do have 20% loss stories, but those days are a lot fewer than the successful ones. What I'm trying to say is that many people don't have my willpower, nor my grit. The general education system is doing a disservice to the generation of kids in school right now by not teaching them financial literacy.
@@1kydes I meant more like if you know you are going to make said amount on a contract then go get the information you need to either manage your money or find someone you trust ( that can be sketchy too) to help take care of your money.
@@1kydes I've spent a lot of money on drugs in my life I've been clean for some years but would be scared as hell that with an influx of money to where I could buy everything and anything I ever wanted. I'd like to say I wouldn't end up dead from an overdose but there's always doubt in my head
Let's Not Forget about WWE WRESTLERS, they have it a lot worse than Sports Athletes. That can be a future video to sink into
So true. Nobody ever talks about how Vince McMahon has screwed over a lot of wrestlers.
@@Noxolo_Shangase Exactly, plus they get no benefits and they have to pay for their hotel and other traveling expenses
@@Noxolo_Shangase every wrestler has spoken about it for years.
fans of old school WWF are aware of what they went through.
Bret Hart talks about doing 12 years straight without a break pretty much and then got screwed over.
@@benrush7090 Of course wrestlers talk about it but not the mainstream. Mainstream media doesn't talk much about money problems in the wrestling industry compared to other professions like basketball, football, or etc.
@@TheHuskyK9 Yeah I would say that mainstream barely considered it a sport for a long time.
They have no idea the amount of punishment these guys went through.
Best advice my mentor ever gave me. "Whenever you get paid, before you invest, before you pay debt, before you do anything! Put half away in saving."
Savings is money just sitting around. Always invest, if you don't, you'll lose money due to inflation.
@@lastpsych5033 Saving and investing have different risks. Saving is more vulnerable to inflation risk than investing is. However, investing has market risk. There is a chance that you could lose all of the money that you invest, while this is much less likely when saving. What you should do with your money depends on what risks you are most vulnerable to.
@@jimmyhirr5773 The general rule of thumb is, that you should save up a 3-month-emergency fund that can cover all your costs for 3 months. If you're american you might as well have a seperate fund for medical emergencies, but other than that it is foolish to keep that much money in your savings account. Invest broadly in well-established companies with different markets and a history of growth and small volatilty. You can also buy ETFs, bonds or gold if you don't want to take big risks.
@@lastpsych5033 Investing has good upside and earnings are lucrative due to the nature of stocks which is very risky. I had received a lump sump of money before and I put it on my emergency fund account and some I invested. If you don't know your way around financial assets I say is just to study it first before you invest. I have seen companies go bankrupt and stocks don't always go uptrend. Some really lose their value so careful on advising people to just go invest money right away
Who makes enough to save half their income before retirement and bills?
Did anyone else notice one of Travis Henry's "baby mother's" is a picture of Media? lol
Yeah hahaha 😆
Madea. Yup.
Hellur!
Yo
And its an Asian kid.
Well if you're not financially literate what do you expect. Also growing up in poverty and all of a sudden getting millions in your teens and early twenties is a disaster waiting to happen especially in those days.
i don't think anyone needs a bachelor or masters degree to understand the greed of woman or a huge entourage.
We all just have to admit that these athletes, actors or musicians loves the attention and every opporturnity to showing off their wealth way to much. look at instagram or facebook how almost everyone of them brag with their money, cars, mansions, private jets, jewlery, designer clothes, expensive hotels, vacations and trophy girlfriend. I'm not surprised they spend it all in just a couple of years lol 😂
Athletes should stop making children they can't afford
probably the women faking taking the pills and then also not taking plan B to "secure the bag" with child support
and expensive houses and cars they can't afford either
Insta?
@@phoenix-king779 thirst
Tim Tresch yess sirrr
At first glance of the title I thought I’d be about predatory contracts, but after I watched the video, it’s just bad money management
Story of: Financially illiteracy and opportunity cost
Sorry but I think it goes deeper than that. Why they have so many children???? Do they think they are Abraham???
NHL players are similar to the MLB. Lots of years playing the minors before making it to the big time.
Not to mention that hockey, at least in the USA and Canada, is an expensive hobby. Many of the NHL athletes came from Upper Middle Class families and above. They have a different handling of money because many of them have never had to go without.
@Gzus Kreist yeah there paid jack by comparison. Theres your difference wise ass
"There is a difference between broke and being poor. Being broke is a temporary economic condition, but being poor is a disabling frame of mind and a depressed condition of your spirit, and you must vow to never, ever be poor again."
-John Hope Bryant
No. The majority of the population has to be poor for us to function which is why class mobility is almost non existent.
@@dael9163 how do you know ?
@@dael9163 that has nothing to do with what he said
also what you said aint true
Rigboss no lol
@@dael9163 ok
Every time I watch your videos I forget you are not a multi million subscriber channel. This is straight up gold.
" Lets send him a congratulatory message to anthony " i didnt see that coming .great contents continue with this type of videos
I saw Mike Tyson live when he was doing his speaking tour a few years back.
was sitting in the front row when he told his story about punching mitch green back in the day.
Tyson was demonstrating & threw the punch on stage & i could feel the wind of it from the front row.
I wonder if Larry Bird still mows his own lawn like he used to when he played.
he just mows down bill laimbeer
@Gzus Kreist well for one thing it's not Byrd.
Or just stop marrying the instafamous models of instagram. Just look for good looking normal people instead, at least they dont demand all things shiny
Or just stay single...I don’t get why people feel the need to be with someone so pointless
I think it all comes down to athletes hubris. They think they are amazing themselves and instead of acknowledging their position and using it in a meaningful way they start trying to date people who they view are on their 'level'. This will typically be Instagram models. I think a lot of this is just poor mental maturity of these guys who play sports. I'm not religious or anything but having that many sexual partners is a bit excessive.
@@TuggzDem we stopped the human race will go extinct in 100years
Still a dangerous play.
People can get hooked on the life style and even if she started out modest can become a demanding hoe by the end of the divorce.
But yea, if you're only looking for partners by how hot and famous they are you should expect a higher chance of gold diggers finding you.
@@TuggzDem Not single but no need to get married. You can be in a relationship without being married.
Do not get used to a lifestyle you are not sure of maintaining when the income drops.
I agree take for instance Michael Jordan even though he divorced his wife she got paid big and he remarried but he also invested so he will not go broke and that was smart
We need a national conversation on how insanely unjust the divorce laws (and judges) are toward men. Divorce is an industry in this country and it's disgusting. This must change for the health of the country.
Won't be changing any time soon sadly
@@SpencerCornelia I'm a little more optimistic. I see a lot of awareness of this issue among young men, especially on YT. Many men are walking away from marriage too. But yeah, it might take another 15+ years for things to change legally, who knows.
I'm curious to see data on the amount of men leaving the marriage mindset. There's no doubt access to red pill community has had an impact. How much? I have no idea.
It’s because they spend a lot and don’t invest and save and plan for their future retirement. They often come from nothing and get given more money than they know what to do with
the number one reason whether its a athlete, entertainer, or music industry artist or even the average civilian is living above their means, frivolous spending, and acquiring large amounts of debt. The idea is to live on a restricted tight budget and spend only with in your means. But the problem with these people is that almost all of them live way above their means, over spend on everything to include expensive cars, jewelry, clothes, gold diggers ( male or female) watches, homes. trips, parties, drinks, and wasteful items. They do it to impress others. its a life style status quo. And all of the fake friends they are trying to impress will only be around until they are broke.
It's a sad world indeed.
Now you can apply this to 17 and 18 year olds who are getting millions of dollars fresh out of high school because they can get paid, I wonder how that’s going to go…
Lol Spencer with the brutal facts on marriage
Marriage shdnt be for money
I'm very impressed with your professionalism on this subject. You're on point. Also, never get marry while have a career job. I notice that for years baseball players has the best career and better money management.
Baseball players usually come from intact families.
@@JGSuttonJr That make perfect sense.
The biggest problem is young people don't have a sophisticated understanding of how contracts work. Always have a lawyer explain in plain English, what the terms of the deal are and always put language in the deal that is favorable to you.
Antonio Cromartie had a child even after had a vasectomy 😂😂😂
Hold up wait a minute something ain't right
did he DNA test it?
Did the kid come out white?
That kid can't be his something aint right
@@brandonlee934 Yes. New studies show that some men, particularly younger ones, can naturally reverse heal a vasectomy.
reversemyvasectomy.co.uk/can-my-vasectomy-just-correct-itself-naturally/
As a wise man once said:
"Don't blow it, keep it simple, count your money."
Absolutely love this series. Keep doing it and variations of it
watching others go broke and learning from them is so fantasizing. Thats how we grow.
@@digitaltawhid8870 I love it!
Look up “The Jack Johnson story” he’s a hockey player who’s money got spent by his parents, and he was in massive debt
Horrible 😪
Tomi Janet it really is
God bless our national treasure, mr. Manny Pacquiao for being smart with his money and does charity events ever since he started a lucrative boxing career. 🙏
This is the same as winning the lottery. You go from having no money to millions suddenly. Because of that, there's no clear marginal utility yet in mind which ends up spending so much on things that can be found out not to be needed later. This results to being broke despite having a huge amount of cash in disposal initially.
It's good you discussed the divorce aspect. Marriage is a risky business when you're not a professional athlete and getting married as an athlete amplifies the risk. it doesn't help that the women they attract usually look good but lack in every quality necessary for a successful marriage.
The women they attract are at least as shallow as they are.
@@JGSuttonJr You're damn right about that. Then again, it's hard to blame em because just like their not knowing how to manage money, a lot of em were brought em by single mothers who didn't make the best choices in life either.
Like High level music artists, people don't see how many people have their hands in the pot. Uncle Sam, A manager(3 for artists-artist Manger, touring and record) easily making20%, bad investments....ect.
I think you're my favorite RUclipsr now. I learn a lot of things I didn't know!
Pretty much: DON'T GET MARRIED unless she is just as rich as you, and you both have your own lawyers watch you both sign a prenup
Yeah pretty much ur right
More like don't have 10 kids from 10 different women
after seeing the record labels videos, I thought it was gonna be something to do with sponsors and funky contracts, instead, it basically just falls onto the shoulders of the athletes themselves
To be honest, I haven’t find yet a better RUclips channel than this. This is just awesome ! ❤️💯
You're my new favourite RUclips channel. I see a video of yours, I click it.
Give young unresponsible people millions and they’ll think it’ll never run out.
I think a large part of why athletes go broke is "too much, too fast, too soon" when they are young, healthy and making money (humans, generally speaking, are terrible at management) and their backgrounds. A lot of these athletes come from poor neighborhoods that glamourize money and fame, but they never learn how to properly MANAGE all that coming at them at once. When you throw in family, lawyers, and less then genuine people whispering in a young, rich person's ear, well, It's not surprising that the house of cards falls apart.
yea very nuanced situation and I think that has a lot to do with it. managing money isn't as it easy as it may look
Just to point out the women are not necessarily evil or scammy. Sure, some of them are goldiggers but many actually cared for their husbands and divorced for legitimate reasons
This ^^^ , there’s a whole lot of misogyny in these comments when in reality most of these athletes knew exactly what they were doing when they got married
I trust what he says because he has books behind him.
Great video! I will try not to get married lmao. I just wonder why we don't hear about high profile businessmen paying that much in child's support.
You don't hear about it...but it absolutely does happen. Starting with
our current president. (Trump) His child support tab was pretty high. I know a coupla doctors AND lawyers (who you'd think would know better)
...who are paying for a coupla out of wedlock children. So-called "businesses men" are can be just as sloppy about breeding as athletes. Difference is they have salary structures that pay them MILLIONS for 20 sometimes 30 years plus MILLIONS MORE in STOCK OPTIONS .
@@FIGHTSEEN It's not about how much you pay; it's about how much you have left.
Because the money flow don’t stop as early for these businessmen; most athletes have a shelf life of at most 15 years, but businessmen keep making money until they retire at ~65+.
@BARACKOBAMA 😂😂😂😂😂😂😂😂😂
@BARACKOBAMA some people want to retain the possibility of having children?
Sounds like financial planning should be required curriculum for a lot of these big league athletes to help them out in the future
Exactly
Don't forget income taxes (around 50%) and agent fees (of around 10% pre tax monies) before getting paid.
I remember seeing a video taking about how a fraction of the top 50 richest women in the world legitimately earned their money, everyone else got it by divorcing their husbands
“How your favorite athlete get broke”me thinking abt Ronaldo and Messi yah that’s never gonna happen
True, but Ronaldo got accused of rape twice. Still dangerous getting with unknown women.
Pro athletes should take a mandatory finance class before signing those big contracts. Team owners should provide them with money management resources.
Why athletes and artists don't venture into real estate is beyond me. You cant go wrong with rental property
this is why its good to have an education before going into sports or entertainment. if you don't have a degree, try getting a diploma especially in money management, finance and accounting
Degree can’t save you. Money management you can learn from a $1.50 in late charges from a public library 📚. Why go into debt via that educational route.
Allen inverson comes to my mind when broke to making back money
Man putting resources like this out open on the web. You're amazing Spencer, thank you for your time and effort. Love my dude. Literally changing lives and encouraging to do better. Live long and prosper!
Wow. I mean - just wow. Sunken costs - that didn’t even occur to me. Awesome video as always, Spencer. ✌️Thank you for making it.
Absolutely outstanding video: very well produced, excellent narration and great financial advice. Well done!
Another great ,informative episode by Spencer. Salute💯💯
This easy to answer because they spend more than they save. They don't invest in something to always have money coming. You can buy but make sure money coming in ya dig.
Super informative, same as record labels series. You should do actors and internet influencers next. Subbed instantly!
I am lucky to have found you man. Now i see why living a normal life is not that bad.
Most people think they're smarter than the average ex-pro athlete. The truth is most people will end up exactly where they ended up if they should ever experience such a drastic pay increase.
If you treat wealth like a right to it you'll never appreciate it. If you recognize that it's a job to maintain your wealth then you'll become a steward of you and your family's future.
The quality of your videos has gone up so quickly. Better camera, better fitting shirt, and even better content all in less than a year. Keep it up Spencer!
Football has shortest career.
NBA has medium term career (except for the top guys)
Baseball has longest term career
Thanks for the effort that goes into your videos.
Short answer: they are terrible at money management and splurge
People who are good at running fast and throwing balls around often arent that intelligent, whoda thunk it?
What people don't realize is that these athletes have agents and managers.Add taxes and the money drops drastically.Some blow their money on big houses and cars forgetting about property tax and school taxes and after their careers are over and the big bucks stop rolling in they're unprepared to handle it.
You talked about marginal utility, and that’s certainly part of it from a psychological standpoint.
I think the main reasons are- 1 spending too much money on things that can only be sold for pennies on the dollar (ie. custom jewelry). Sure, have a fun budget. But make it a budget. Things like custom jewelry should count as fun expenses, not assets. Any resale value should be a pleasant surprise and nothing more.
2 - expenses based on peak income that will continue way beyond their careers. Child support, mortgages, maintenance, entourages, etc don’t go away the day their career ends.
People who go from rags never learnt about investing, not to mention when the cash flows you start thinking your the shit and your value will never end.
This is why I’m not getting married
It’s even sadder when I think of the amount of them who were forced by a parent to become elite at a sport they enjoyed but were naturally gifted at playing. Forced into the extreme discipline it takes to make it to the top, so they can become rich.
Then finally being the rare ones who become rich but then being expected to spend a lot of money on their family. Then going broke because of the purchases.
Having no real job skills because they either didn’t have to do much school work or doing the bare minimum in college because they “just know” they’ll be rich.
I coach middle school and high school athletes. Only ever had one get close to making an NFL, he made a practice squad. But I’m much more satisfied with the number of college graduates who were coached by me. Some came back and taught and coached at my school.
$40k a year with a student loans is much better than getting a full ride, declaring for the draft before finishing a degree, only to lose millions and be broke again.
Not saying a college education is the be all solution, some of these athletes could’ve done it for free, or finished up in a few offseasons.
What’s even sadder is the athletes who go broke making bad investments. They were trying to avoid going broke and either got swindled, listened to the wrong people, or just had bad luck and didn’t recover.
Great video.
Apart from these athletes there are also quite a few billionaires who went broke.They already were high profile business people who started from small. If possible would you do a video explaining that? great video though
On marriage it's simple: if you didn't get up early and grinded all day everyday worked through the hard times and the lonley times and through the mental doubts and obstacles to over come WITH ME THEN you don't deserve half my stuff.
You gotta work for what you got no free ride
Pre Nuptial Agreements FTW
This is why I always said that the majority of rich people are POOR despite ironically being “rich” at the same time at some point of their lives.
Those photos of them bragging a lavish lifestyle won’t pay their debts, people move living on fake appearances nowadays....
Actually, the money is exaggerated to begin with. Agents take a huge cut. There's also other professional services - like lawyers and accountants.
Shaq is smart, he went to school while he was playing basketball to learn how to run a business. Then he invested in numerous fast food restaurants and is successful.
Yea he's killed it in business
Love this - such an elephant in the room. Great video
I love me some microeconomic theory.
I LOVE this series! I'm a new viewer who was hooked by your video on the economics of the music industry and this is exactly the type of content that I subscribed for. I cannot wait for part 2 and anything else you cover in this series.
ESPN´s documentary you mention here is a must watch for anyone who cares about finances.
Give a lot of money to a poor person, and there we go. MJ DeMarco covers this well in Millionaire Fastlane.
this video along with your "favorite musicians are broke" vid are extremely interesting.
as someone i know bought some birth control, the pharacist joked about the price of it ($50)
"either 50 dollars now, or 2 million dollars and 18 years"
Funny thing is superstar actors and musicians don't go broke the way athletes do. One reason is that a sportsperson's career ends at the age of 35 whereas an actor or a musician can perform until death.