Wednesday, July 16, 2008

10 Ways For A Professional Athlete To Go Broke


I came across this article at ESPN about professional basketball players filing for bankruptcy. Apparently, 60% of NBA players, according to the Toronto Star, are broke five years after they retire. This article could be for any professional athlete, so show me the money.


A few years back I had read the book The Dark Side of the Game by Tim Green, who was a former #1 draft choice for the Falcons NFL, and is now a television broadcaster, lawyer and author. One part of the book that got my attention was the section that discussed the players finances. He talked about the typical player who never had much money, relied on scholarships and now is an instant millionaire. Not far behind are the agents and "friends" that suck the athletes dry.

Never mind living within your means and sticking to a budget. Just think, the median salary in the NFL in 2007 was roughly $770,000. In one year, a player, who lived like a normal person, could go through all of Dave Ramsey's 7 Baby Steps.

So here are the 10 steps on how a professional athlete can go broke:

1. Screw up, deny it, then fight by using every lawyer and dime you have.
2. Buy a house the size of Delaware.
3. Buy many, many cars - not just for yourself.
4. Buy a jet, yes they really do buy jets.
5. Spend stupid money on other really stupid stuff, not to mention bailing out family members who know you will bail them out of their stupid stuff.
6. Hire a slick agent.
7. Be sure to give the agent general power of attorney, so he can take care of all your needs without troubling you for a signature.
8. Spend like the money will never stop.
9. Just perform, don't worry about your house or family.
10. Most of all, set up a huge support system around you and keep your posse comfortable.

You can go HERE to read the whole article and see some real examples.

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Monday, June 16, 2008

Celebrity Finances


Former heavyweight champion Evander Holyfield appears to be having financial problems.

A legal notice that appeared in a local newspaper indicates Evander Holyfield's Fayette County estate is under foreclosure. His 104-room, 54,000-square-foot home worth an estimated $10 million is set to be auctioned by a bank on July 1.

The mother of one of Holyfield's nine children says he has missed two child-support payments. Toi Irvin, says she was told by Holyfield's representatives not to expect the payment for May and June totaling $6,000.

Holyfield last fought on Oct. 13, 2007 and he has been trying to secure another heavyweight championship.

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Friday, June 13, 2008

More Mortgage Blues


Even celebrities and politicians are not immune from the mortgage blues.

Ed McMahon, the longtime sidekick to television star Johnny Carson, faces the possible loss of his Beverly Hills home to a foreclosure action initiated by a unit of Countrywide Financial Corp.

U.S. Rep. Laura Richardson, a California Democrat, recently lost a home in Sacramento to a foreclosure. Not only has Richardson missed house payments, but she is behind on her property taxes, a lien was placed on her Sacramento house because of an unpaid utility bill, and she angered her neighbors by not keeping up her home.



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Friday, January 4, 2008

Lindsay Lohan Falls Off Wagon And Is In Need Of Money?


In a video obtained by The Associated Press, it shows the recently rehabbed actress taking a swig from a champagne bottle while in Capri, Italy. Also, in another story from MSNBC , Lindsay Lohan is bumming bills from her pals. A source told Gatecrasher that the once wealthy actress is openly mooching money from her friends; even after running up $736 bar tab on the Italian island. Sounds like she has more than just financial problems to deal with at this point.

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Sunday, December 30, 2007

Paris Hilton Disinherited


Hotel magnate Barron Hilton has pledged $1.37 billion to a family charitable trust and plans to leave the bulk of his fortune to the body when he dies.

Did Paris Hilton's recklessness cause her not to be the worthy beneficiary of such a fortune?

It might be. For everyone has standards. In some countries in the world, it does not matter how wealthy one is, if you bring shame to your family name, be expected to be blacklisted, disinherited or the one people whisper about next time you make a public appearance.

Some persons among us, no matter how wealthy, or not, do not take it too well when someone else in the family does something to tarnish the family good name. Because to some people, that family name is sacred.

I think that it is obvious that Paris Hilton will prevail without her grandfather's millions, especially given all the endorsements and reality shows she has been a part of. If not, hopefully she has an emergency fund set aside with three to six months of living expenses to assist her while she finds some employment.

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Saturday, December 29, 2007

Tina Fey American Express Ad

This AmEx ad shows Tina Fey in action... 30 Rock Style. The funniest part may be when she's reading some papers and tells the guy, "this is good stuff" and he responds, "those are my divorce papers."



At the end of the ad they ask, "Are you protected from unexpected problems? Are you a cardmember?" as if to say that there's no other way to avoid unexpected problems or that no other card (credit or debit) will protect you from fraud.

Just as the AmEx guy starts asking her if she bought 14,000 racquetballs this little blurb shows up on the screen: "Terms, conditions and restrictions apply." That's short for "it isn't really as easy as we make it out to be."

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Tuesday, December 18, 2007

Jamie Lynn Spears Says She's Pregnant

I came across this story of Britney Spears sister and it reminded me of another story I saw in the USA today about teen parents. It said that fewer teenagers are having babies or dropping out of high school since the start of the decade, but slightly more live in poverty. Jamie Lynn plans to raise the baby in her home state of Louisiana "so it can have a normal family life." Good luck.

The Annie E. Casey Foundation ranks every state each year on 10 health indicators for children. According to the reports there, Louisiana is not a good place since it ranked 49th out of 50 (but it did beat out Mississippi). The state is ranking near the end of the pack in low-birth weight, infant mortality rate, child death rate, teen death rate, teen birth rate, children in poverty and of course children of a single parent. Maybe she should move to Minnesota, New Hampshire or Connecticut since those are the overall top three states.

Jamie is a good candidate for Dave Ramsey's Next Generation course!

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Sunday, December 16, 2007

Abe Lincoln's Letter to his Brother

Here's a letter that Abraham Lincoln wrote to his brother when he was asked for some money. Dave Ramsey often tells people on his Radio/TV shows to read it when they're being enablers and struggling with boundry/money issues.

Dear Johnston:--

Your request for eighty dollars, I do not think it best to comply with now. At the various times when I have helped you a little, you have said to me, "We can get along very well now," but in a very short time I find you in the same difficulty again. Now this can only happen by some defect in your conduct. What that defect is, I think I know. You are not lazy, and still you are an idler. I doubt whether since I saw you, you have done a good whole day's work, in any one day. You do not very much dislike to work, and still you do not work much, merely because it does not seem to you that you could get much for it. This habit of uselessly wasting time, is the whole difficulty; and it is vastly important to you, and still more so to your children, that you should break this habit. It is more important to them, because they have longer to live, and can keep out of an idle habit before they are in it easier than they can get out after they are in.

You are now in need of some ready money; and what I propose is, that you shall go to work, "tooth and nail," for somebody who will give you money for it. Let father and your boys take charge of things at home--prepare for a crop, and make the crop; and you go to work for the best money wages, or in discharge of any debt you owe, that you can get. And to secure you a fair reward for your labor, I now promise you that for every dollar you will, between this and the first of next May, get for your own labor either in money or in your own indebtedness, I will then give you one other dollar. By this, if you hire yourself at ten dollars a month, from me you will get ten more, making twenty dollars a month for your work. In this, I do not mean you shall go off to St. Louis, or the lead mines, or the gold mines, in California, but I mean for you to go at it for the best wages you can get close to home, in Coles County. Now if you will do this, you will soon be out of debt, and what is better, you will have a habit that will keep you from getting in debt again. But if I should now clear you out, next year you will be just as deep in as ever. You say you would almost give your place in Heaven for $70 or $80. Then you value your place in Heaven very cheaply, for I am sure you can with the offer I make you get the seventy or eighty dollars for four or five months' work. You say if I furnish you the money you will deed me the land, and if you don't pay the money back, you will deliver possession-- Nonsense! If you can't now live with the land, how will you then live without it? You have always been kind to me, and I do not now mean to be unkind to you. On the contrary, if you will but follow my advice, you will find it worth more than eight times eighty dollars to you.

Affectionately your brother,

A. LINCOLN.

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Are celebrities overpaid?

Check out this cool site from Bankrate.com. You can choose one of the top film stars from their list of top-grossing box-office stars, and see how ordinary purchases affect their bank accounts compared to an average person making $30,000-a-year.

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Friday, December 14, 2007

Norman and Evert Get Engaged

So Chris Evert and Greg Norman are getting married? Have they sat down with each other and discussed finances? Have they talked about how they will combine income? How will they pay their bills? Have they talked about their saving and investing goals, philosophy about money, spending habits, or debts?

These are some important questions that need to be asked in any marriage. Disagreements about finances is the number one cause of divorce, so getting these issues out in the open and coming to an understanding before marriage can greatly increase your chances of staying out of divorce court.

The best way to address any financial problems is with an organized and well-thought out budget and we can help you do that with our online class.

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Al Gore Goes Green


Well Al Gore is finally putting his money where his mouth is and dropping a lot of money down for energy improvements to his home. The former vice president has installed solar panels, a rainwater-collection system and a geothermal pump. He also replaced all incandescent lights with compact fluorescent or light-emitting diode bulbs -- even on his Christmas tree.

I was looking for the numbers to see how long the pay back is on these improvements, but could only find something about the geothermal heating.

This Old House uses the following numbers for the geothermal heating:
Installation cost: $15,000-$20,000
Savings to heating/cooling bills: 30 to 70%
Break-even point: Seven to eight years

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Monday, December 10, 2007

Google Wedding


The wedding of Larry Page, the co-founder of Google, on Sir Richard Branson's luxury Caribbean island generated a swirl of excitement despite attempts to keep the nuptials private. Up to 600 people were expected to witness Page tie the knot with doctoral student Lucy Southworth on Necker Island, Branson's 74-acre British Virgin Islands hideaway. The prestigious guest list apparently included the Clintons, U2's Bono, along with Hollywood stars Leonardo DiCaprio and Jonny Depp.

I do not think the Pages will have any money troubles, but if they do, Dave Ramsey offers some good advice for couples to get out of debt.

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Scott Baio (Aka Chachi) Gets Married to Renee Sloan

Good luck the one of the longest bachelorhoods in Hollywood. Hopefully this will be it for Scott, who had to hire a life coach because he could not commit, according to an Eonline article. Larry Burkett, noted financial author, says, "Money is either the best or the worst area of communication in our marriages." After years as a financial counselor and working with marriage counselors, I know that money and money fights are the #1 cause of divorce, not to mention the thing we fight about the most.

So if you are married and have money fights, you are normal. But if this is a real problem area for you, there is also an opportunity to improve your relationship and maybe even reach agreement with your spouse. I'm not talking about agreement brought on by surrender, but rather by each person getting a vote, understanding the other's view, and finding common ground.

Let's face it - if we can agree on the checkbook, there would be nothing left to fight about except who gets the remote. But there is so much to fight about and so many opportunities to be misunderstood.

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Lindsay Lohan Hitting The Sales



Lindsay Lohan was hitting up Diabless's Los Angeles store to take advantage of the ongoing winter sale. Spending several hundred dollars on "winter basics" i.e. sweater hoodies and long-sleeve tunics. I came across a helpful document that indicates the right time to buy items at very deep discounts. The month of December is the best time to take advantage of clothing for children and women, nursery items and shoes.


Download the list of Best times to Buy things. It is one of the tabs on the bottom of our budget spreadsheet.


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Sunday, December 9, 2007

Britney Shopping For A Home



Britney Spears is looking for a new home. When I am considering purchasing a home or to refinance, I usually check this very helpful site to see where the rates are going and how long I have to act or wait for the rates to fall.

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Sunday, October 14, 2007

Hanna Montana Worshipping Credit Cards

When I saw this, I was glad to see that Disney did not use a Citi or Mastercard or Visa card. That at least shows that there's a chance that they didn't sell out to "Big Plastic" by teaching our kids to worship credit. This does, however, show how the first credit card has become a rite of passage to adulthood. AND still, even though they didn't (obviously) sell out out "Big Plastic" it does brainwash kids into thinking how cool credit cards are and how their use as an emergency fund is normal.

Also, to Disney's credit, it was not a show about using credit responsibly... It was just about how the girl got in trouble and tried to hide it from her dad... and in the end got caught. The moral of the story was that coming clean early on with a problem is better than hiding it. Again, it could have been much worse by being about the acceptable use of credit, especially by teens - but it wasn't. Still, my kids don't and won't watch this trash. She'll probably be the next Britney Spears or Lindsay Lohan.

Things to think about: Why couldn't the dad give them cash to use in case of an emergency? How did the rest of us grow up not having our parents' credit cards "for emergencies" only? I mean really? "Would a cruel, cruel father give you..." credit cards? I say yes. That would be cruel.

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Tuesday, October 2, 2007

Reverse Mortgage = Financial Freedom? Really?