This Yahoo article mentions the poor money mangement of former athletes, which is leading them to potential bankruptcy.   It’s sad but true. Worth millions of dollars while they were active in their respective professions, they are losing money within two years of retiring.  It stated that 80% of the players in the NFL and 60% of players in the NBA find themselves in this position – that is simply astounding to me.

How in the world can someone making hundreds of millions of dollars lose it that quickly? The answer is financial illiteracy combined with the inability to control their desires and addictions to living a lavish lifestyle plagues their financial predicament with bad decision making.

I was surprised when I read the statistics and case-studies because they really proved, it’s not what you MAKE, but what you KEEP!  Who cares if you make $10 million per year if you spend $9,999,999.00?  On the other hand, someone could be making $30 thousand per year, but they only spent $25,000.  At the end of the year, who has more money?  It is more important to focus on keeping the money you make rather than focusing on trying to make more money!

Consistent money management is a challenge for all of us.  However, through financial literacy to help you understand how to manage your money as well as through life skills literacy, which will help you to make better decisions, everyone could learn to manage their money better.  Here are some tips to help you with your financial planning:

1. Focus on keeping the money you make, rather than always trying to make more money!
2. Always be aware of your current true cash position and understand every fee and transaction on your bank statements!
3. Set financial goals based on your current financial state as well as your desired financial state and practice discipline to reach your goals!
4. Use credit if you must, but in true cash we must trust!
5. Learn to manage money using a systematic approach to understand your overall financial health!
6. Surround yourself with people that will help you to achieve your financial goals!
7. And most important, learn to manage yourself better and you will manage your finances better!

Related posts:

1. Money Monday Poll: Any Emotional Spending Regrets?
2. College Financial Aid Websites that Help You Save Money
3. Money Monday Poll: What Were Your Tax Results??

Tags: holyfield, money management, tyson
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