Azelma wrote:
It's a shame. I'm reading this book called The Millionaire Next Door (
http://www.amazon.com/Millionaire-Next- ... 0671015206 )
It's all about wealth building. They have a formula for what you should be worth given your age and income (1/10th of the product of your age and yearly income). People like TO are screwed because of hyper consumption. He made almost 80 million in his years in the NFL, but has spent almost every penny of it...now in the midst of 4 custody battles for his kids, a series of "bad investments," and a general high consumption lifestyle, he is screwed.
To draw a sports analogy the book discusses "good offense" as your income. "good defense" is how frugal you can be, how dedicated to investing a percentage of your income you are, and so on.
People like TO have great offense (potential to earn big $$$$) but terrible defense. When the offense runs out (no job in the NFL), they are screwed.
Funny how those books are always written not by the bigshot investors but by...people who make their living...writing books about how to make a living.
"Should be". Says who? Based on what frame of reference? Do we include stagflation, hyperinflation, the Baby Boom era, in such calculations - the general prospect of total uncertainty that is the overriding trend of economic history across lifetimes? Or do we just ignore them and treat our life plans as sure as a T-Bill?
The issue is pretty simple. This guy is ghetto trash. That's why he gets and spends. "Hyper-consumption" is more of a WASP suburban thing. This guy is just...ghetto trash.
