Daily Question for 24 August
Daily QuestionOne a day
Question
Why do most athletes and lottery winners go broke?
Response
Most athletes go broke because they cannot maintain their lifestyle after their playing career ends. When athletes are actively playing, they make enormous amounts of money, but once they retire, that source of income changes dramatically. Many young athletes focus on the wrong things—chains, cars, and a false lifestyle—rather than understanding financial literacy. They don't learn how to save or invest their money because they rely on lawyers, agents, and financial advisors to handle everything, which prevents them from developing the financial knowledge they need. As a result, they struggle to adapt when their income drops and try to keep the same expensive lifestyle, which leads to bankruptcy.
Sources & references
- 01Asking One Of The Richest NBA Players How He Got Rich!5:46(opens on YouTube in a new tab)
When a player when a athlete start playing so he doesn't know about financial literacy. He doesn't know how to save his money, invest his money, none of that at that age. When you come at 18 and in the NBA this is how it works. People provide you your lawyer, your agent, and your financial advisor. You come here and it's like, oh yeah, these are your people. These are the people you got to trust. These are the people that going to handle everything in your life. What does that do? That doesn't allow you to learn. And if you don't learn, you will always need them.