Let’s look at your bank account balance. What do you have in there? One million dollars? Is that all?
Okay, so maybe you’ll never see a seven-digit number that isn’t your phone number, or, hey, maybe you will, but those days are pretty far down the road. That doesn’t mean you don’t have to protect what you have, no matter what you have…or don’t have.
Stop. Hammer Time.
We’ve all heard the unfortunate stories of celebrities going from riches to rags. M.C. Hammer once single-pantedly encouraged a generation of kids to rock some parachute trousers and repeatedly practice hand movements for “2 Legit 2 Quit”. (Sure, it sounds ridiculous now. Teenagers wearing baggy harem pants…) In 1991, Hammer’s net worth was valued at $33 million. In spite of his success, he filed for bankruptcy in 1996, just six years after “U Can’t Touch This” was released.
Thirty-three million dollars. Imagine what you could buy with that. You could fill up your living room with 500 laptops for $2,000 a pop and still have $32 million left. It would be awkward to explain why you have all those laptops, though.
Scars of Bankruptcy
We don’t know exactly what Hammer did with his $33 million. He may have done a lot of great things for his community, but in the end, his debt hurt him and those around him.
More recently, in 2012, Warren Sapp, former NFL player, filed for bankruptcy. Once worth $6.45 million, he was $6.7 million in debt.
Neither Sapp’s nor Hammer’s stories are unique. The point is, even millionaires go bankrupt if they don’t make decisions to protect what they have. You’re (probably) not a millionaire, so you have to work even harder. If you’re trying to live the life of a pro ball player or rapper, just keep in mind sometimes even they can’t afford it.