The Million Dollar Mystery

Why do rich athletes go broke so quickly?

from daveramsey.com on 04 Oct 2011
 

NFL stands for "not for long." The average player lasts only 3.7 years in the league. So if a player lasts four years and makes the minimum salary—with the minimum increasing for each year of service—he can expect to make nearly $2 million. Two million dollars!

The median salary for an NFL player is $900,000. And according to Yahoo, some people estimate that 80% of players have used all their money by the time they retire.

Within the last 10 years, current and former NFL stars such as Michael Vick, Deuce McAllister, Mark Brunell, Lawrence Taylor and Travis Henry filed for bankruptcy.

So how does this happen? How can someone blow that much money in that short amount of time?

It's pretty simple, really. Athletes blow money the same way the rest of America blows money! There's no difference!

Sure, they have more to burn through. But what's the difference between a guy who is spending $50,000 a year on a $40,000 income and the guy who is spending $500,000 a year on a $400,000 income? Neither one has any clue how to make a plan for his money!

Too many Americans work their whole lives and have nothing but a Mastercard, student loan, and car payment to show for it. That's stupid!

Maybe you think, Well they are just dumb football players. But some of those football players are smarter than some of us ever thought about being. They had a goal and purpose for their lives—to reach the pinnacle of their profession, the NFL. So we can fuss at them for squandering it all away. But, honestly, a lot of us do the exact same thing.

So before you wag a finger at athletes for burning through millions, take a look at your finances. Turn the spotlight around on yourself and determine if you have flaws in your financial gameplan.

It all starts with common sense—not buying a car you can’t afford, not getting in over your head with a tricked-up mortgage, not piling up debt on credit cards.

It doesn’t make sense to work your butt off your entire life and retire broke. Professional athletes have no excuse for it, and neither do you.

Make a plan, stick to it, and get your life on track financially!

Read about how one former professional athlete made smart decisions with his money and is still reaping the benefits.

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