Some debtors need to file bankruptcy due to no fault of their own. These individuals usually have suffered some kind of enormous medical expense or maybe their home is severly under water. For others, such as the athletes profiled in ESPN’s new 30for30 documentary “Broke” need to file for bankruptcy because they had a really good time living outside of their means, with nothing saved up for a rainy day. The documentary profiles athletes who were at the top of their game and then lost/spent all their money, only to be living a very pedestrian lifestyle in this day and age. What viewers and readers need to realize is that most athletes professional careers only last on average 3-4 years, and most don’t make superstar money. Athletes have a short time frame to make serious money before having to get a real job outside of sports. Many athletes fall into the trap of spending all of their hard earned paychecks because they are young and are often times from underprivelaged backgrounds and have no concept of saving money, because they never had any money to begin with. Often times athletes help out their friends and families with bad investments and then they go on to blow a substantial amount of money on cars and bars to name just a few of the bad choices.
So what can we learn from these athletes as well as various lottery winners and entertainers? Be smart with your money. If you got it, invest in things that will show you a profit, unlike vehicles, alcohol, and zany start up business. Go with what works and get professional investment advise before making any substantial decisions, and always live within your means. You don’t want to have to file for bankruptcy because you charged up your cards trying to keep up with what everybody else around you was doing.