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December 02, 2009

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These guys are just plan dense. I mean, they were impressed with the fact that what they had cost a lot. The watch thing always gets me. I have a timex. I think I spent 12 bucks on it . It works great. Looks nice enough. That thing about owning a rolex just doesn't make any sense to me. I swear if I was Bill Gates, I might splurge and spend 50 bucks on a watch. But thousands??? to me that just says....I'm stupid. please rip me off.

The part of these stories I just don't get: Why not take some % (whether 10, 20, 30, or perish the thought 50%)and put it aside? Index funds, savings bond,anything..even a savings account for heaven's sake! And then go wild with the rest if you must. That's still an extravagant life style. Okay so maybe you can only support 30 of your friends instead of 70. Dang.

Yes I know there beter investments than I listed, but those are better than the ones used by those two. Criminey. I promise FMF if I am ever in that income level I'll give money to your favorite charity. $10,000? ;->

The figures beggar belief but I wonder what the percentage of wealthy/prominent money mismanagers is versus ordinary joes doing the same thing. In some ways I guess those of us who have to work our asses off every day are lucky in that we have to get a personal-finance education over time or suffer (of course not everyone bothers). Last time I was in Ireland I was talking to a friend of my mum's who came into a large amount of money in his 40s. He was certain that had he gotten a similar sum when he was a young guy with no life experience in his teens or early twenties he would have blown it all.

It's not the Rolex--you couldn't go broke by buying a Rolex, or even a few. Probably not even the Lamborg---it's just one car and has a fixed, one-time cost, y'know?

It's supporting the 70 person entourage and paying his Mom's outsized mortgage (& probably staff for the house) day after day after day.

Everyone knows it's not what you buy, it's the chronic spending that really gets you. Also you always spend the most on personnel if you have business.

Still, amazing idiocy!

Thank for the Schadenfreud.

I'm never surprised by a story like this, because some people will always spend whatever is available (cash + credit) and there's never a shortage of things to buy no matter how much you have.

Its the "Within five years of retirement, an estimated 60% of former NBA players are broke" stat you reported that will always amaze me.

Why are we so quick to judge? Celebrity and huge money. It's life altering. Look what happened to MJ. The pressures from family, friends and free-loaders must be miserable!

Mike

I have to agree with guinness416, having to work for every penny that you earn really makes you appreciate your money. With these people, there seems to be a problem that their salaries are so overinflated they lose sight of having to earn money and just view it as a limitless resource that will never run out. On that note, I also must mention that while I believe Mr. Cage and Mr. Walker must both exert a lot of physical energy in their professions and probably do deserve decent salaries, both of their positions could be easily removed from our world without causing major issues (besides entertainment), unlike certain other professions that are much more in the necessity category.

It's amazing to see big stars with enough money to last multiple lifetimes go broke. Makes us mad and all I want to do is yell at him.

These types of articles just make me wish I had 1 year of their salary right now. We could retire, double our standard of living, travel, and fully support Pughearts for the rest of our lives making just 2.5% a year off of $5,000,000.

Heck, we are only aiming for $3,000,000 to retire on right now and it seems that will take us another 25 years.

We definitely did not get into the right jobs...

At least Cage is going broke with style. His pile of stuff sounds a lot more fun than simply blowing everything on cars, big houses and an entourage of losers.

@Jim
I was thinking the same thing! At least Nick has a castle and haunted houses to fall back on... :-D

While it certainly wouldn't break him, I'm curious to see what happens to Tiger as more news comes out about his affairs. I'd rank fooling around when you're rich and famous--and MARRIED--right up there with any of the stupid money tricks Nick Cage or Antoine Walker have pulled.

Dar
Except MJ and Tiger aren't broke.
And Nick has to sell his castles.

All these fools had to do was save first year's earning and they'd be ok.

BillV -- Yes, Tiger isn't broke, and I said as much. But it's another example of a foolish money decision (not to mention personal shortcoming). These guys making all that $$$ who get married when they don't really intend to settle down might as well stay single and take their blood-sucking entourage everywhere with them. Either way they're throwing their money away.

I indirectly know a little about the finances of a number of average athletes who make $1mm+ per year. Many of them spend most of their money paying their entourage. Mom- 200k, Dad- 200k, Brother 150k, best friends- 100k each. Next thing you know, they have paid their 'employees' through their 'company' 70% of their yearly income. Very sad actually. They're all very young, making a ton of money, and fail to realize it will all end in less than 5 years.

Buying the cars, the watches, and the houses is really a small percent of what they spend.(plus these things can at least be sold for something.)

We all criticize rich people for spending money on things that we know we don't need. But let me ask you this, how many things do you have in YOUR house that you never use or don't need? Heck, a lot of people have a "junk room." We can sit here and say WE would never go broke if we had millions, but honestly, how true is that? If you had $20,000,000 right now, would you buy the biggest house you could find? Would you buy a tricked out car or two? Would you throw out all your clothes and go buy shirts for $500 and pants for $1,000? Would you get the best furniture available along with T.V.'s and a boat and a camper and jet skis and four wheelers and a motorcycle and dirt bikes and the best computers and maybe spent thousands on musical instruments and furniture and jewlery and expensive toys for your kids and buy mom and dad a house and a car and give them money and so on and so on and so on? Add that up, and you could have just spent $10,000,000 or more right there. And who wouldn't want their own island? Yeah, I could go broke if I had $20,000,000. We all could. If we had it, most of us would blow it, after all, don't we blow that extra 100 bucks we get on our pay check? Yeah.

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