As a follow-up on my post talking about It's Not What You Make, It's What You Spend, here are two real life examples from the news today:
First we go to Michael Jackson (everyone's talking about him, so I might as well too). In an article titled "Michael Jackson's Money Troubles" it states:
"Jackson is thought to be in deep financial straits despite owning various music and real estate assets worth as much $600 million."
Why? It goes on:
"The King of Pop, for all his assets, spends far more money than he generates these days, according to an expert who testified at Jackson's trial."
Isn't that the same story for many today?
The second story is about Mike Tyson, the ex-heavyweight champ who lost his most recent fight this weekend. ESPN reports:
"Though he once had $300 million in the bank, now Tyson is $24.4 million in the red, even after a settlement with promoter Don King that would pay the former champ $14 million."
If you need even more examples, check out "Debt Disasters of the Rich and Famous".
Once again: It's not what you make, it's what you spend that determines your net worth.
Update: Time to post on the Beltway Traffic Jam.