• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

National Debt Relief

National Debt Relief - A+ BBB Accredited Business - Get Relief From Credit Card Debt, Medical Bills And Unsecured Loans

Talk to a debt counselor toll free:

800-300-9550

Get Relief From Credit Card Debt

Medical Bills and Unsecured Loans

  • Services
    • Debt Settlement
    • Debt Relief Benefits
    • Qualifications
    • Is Debt Settlement Right For Me?
    • Debt Help By State
    • Debt Relief FAQs
      • How Debt Relief Affects Your Credit Score
    • Free Budget Planner Worksheets
    • Free Debt Calculator
  • Options
    • Debt Relief
    • Bankruptcy
    • Credit Card Debt Relief
    • Debt Consolidation
  • About Us
    • Who Is National Debt Relief?
    • Accreditations
    • Proven Results – Debt Settlement Letters
  • Contact Us
    • Apply Now
    • Contact Us
  • Client Login
  • Careers
  • Blog
HomeBlog BlogWhat Star Athletes And Lottery Winners Have In Common
Video Transcript

Free Debt Relief Quote

  • National Debt Relief, LLC BBB Business Review
  • McAfee SECURE sites help keep you safe from identity theft, credit card fraud, spyware, spam, viruses and online scams

What Star Athletes And Lottery Winners Have In Common

April 27, 2013 by National Debt Relief

Senior man enjoying tropical vacationYou might find it hard to believe that star athletes and lottery winners have something in common but they do. Both have suddenly come into large sums of money without being prepared to handle it.

Star athletes and bankruptcies

You’ve probably read those stories about star athletes who went through millions of dollars and ended up having to file for bankruptcy. Unfortunately, the same has been true of some lottery winners. People who are just not used to having or investing big sums of money can lose it almost as quickly as they got it.

Not knowing the basics of money management

The root cause of the problem – whether it’s a star athlete or a lottery winner – is that he or she received the millions of dollars before learning the basics of money management. It actually doesn’t matter whether you earn $50,000 a year or suddenly get a check for $5 million, it’s the same thing. You can get in trouble with overspending, poor tax planning and other mistakes.

Overspending

A mistake commonly made by both star athletes and lottery winners is called “spending creep or overspending.” It’s just hard for people who suddenly find themselves wealthy to resist the urge to go out and start buying stuff. Plus, these people have never had a huge amount of money before and it’s hard to leave all of it just sitting there. It’s more fun for these people to “reward” themselves by purchasing some expensive toy and then another and then another with no idea as to how much money they’ve spent in total – until suddenly it’s gone.

Ignoring the IRS

A second mistake the newly wealthy often make is to forget about the IRS. It’s just not good to owe the IRS money. One heavyweight boxer earned more than $250 million during his career but ended up losing his 54,000 sq. ft. mansion due to a $200,000 debt to the IRS. The lesson to be learned here is that regardless of whether you earn thousands of dollars or millions of dollars a year, make sure you report all your income and never forget that the IRS will get its share, one way or another.

Overestimating how long the money will last

Another mistake that both star athletes and lottery winners make is to overestimate how long the money will last. An athlete who lands a $10 million contract might think that he or she is set for life. However, by the time the IRS takes its bite out of the $10 million there may be only enough to live on comfortably for 10 years or fewer. While you might not ever have to worry about how long you’d make $10 million last, you do need to make sure you don’t overestimate how long your retirement savings will last.

Bad or risky investments

Just about anyone can make bad or risky investments and star athletes and lottery winners are no exception. Some of these people lost millions of dollars when the housing market collapsed in 2007. And the same was true of some very average people who had put too much money into real estate. The lesson here is that if you have money to invest, it’s important to keep two things in mind. First, you should find an expert financial advisor at a firm that can be trusted and pay for his or her help. Second, keep your investments diversified. Whether you’re rich or just middle-class, it’s important that you have a mix of investments such as bonds, stocks, mutual funds and maybe some real estate. And be careful that you don’t fall for one of those risky investments that promise huge returns. Just remember the old saying, if something seems to be too good to be true, it probably is

Do you qualify for debt consolidation?

National Debt Relief

National Debt Relief

National Debt Relief is one of the largest and best-rated debt settlement companies in the country. In addition to providing excellent, 5-star services to our clients, we also focus on educating consumers across America on how to best manage their money. Our posts cover topics around personal finance, saving tips, and much more. We’ve served thousands of clients, settled over $1 billion in consumer debt, and our services have been featured on sites like NerdWallet, Mashable, HuffPost, and Glamour.

Follow National Debt Relief: Facebook Twitter Instagram Linkedin

Filed Under: Blog Tagged With: money management, personal finances, smart money management

Primary Sidebar

Trusted By Our Clients

Excellent

Rated Five Stars Trustpilot star rating Trustpilot star rating Trustpilot star rating Trustpilot star rating Trustpilot star rating

based on 24,642 REVIEWS

"Best decision I've ever made!"

They really care about "you" and making your life easier. They answer all of your questions and are very detailed.

Trustpilot star rating Trustpilot star rating Trustpilot star rating Trustpilot star rating Trustpilot star rating

Kolbie P.

"Saved me from drowning in the debt."

I was up to my eyeballs in debt and National Debt Relief saved me from drowning in the debt.

Trustpilot star rating Trustpilot star rating Trustpilot star rating Trustpilot star rating Trustpilot star rating

Joanna W.
Canal Winchester, OH

"Helped me settle my debts that were choking me."

National Debt Relief helped me settle my debts that were choking me.

Trustpilot star rating Trustpilot star rating Trustpilot star rating Trustpilot star rating Trustpilot star rating

Bobbie A.
Charlotte, MI

"Taken a big weight off of my shoulders."

National Debt Relief has taken a big weight off of my shoulders.

Trustpilot star rating Trustpilot star rating Trustpilot star rating Trustpilot star rating Trustpilot star rating

Richard D.
Piffard, NY

"Stopped all collection calls."

National Debt Relief stopped all collection calls and are working with my creditors to settle my debts.

Trustpilot star rating Trustpilot star rating Trustpilot star rating Trustpilot star rating Trustpilot star rating

Patricia G.
Oran, MO

"Now I can see a light at the end of the tunnel finally."

I was in a tough spot, financially and emotionally. Now I can see a light at the end of the tunnel finally.

Trustpilot star rating Trustpilot star rating Trustpilot star rating Trustpilot star rating Trustpilot star rating

Susan W.
Valparaiso, IN

"I'm sleeping better knowing they are helping me to eliminate my debt."

I'm sleeping better knowing National Debt Relief is helping me to eliminate my debt.

Trustpilot star rating Trustpilot star rating Trustpilot star rating Trustpilot star rating Trustpilot star rating

Jodi W.
Springfield, OH
Trust Pilot Reviews

Free Debt Relief Quote

By submitting, you agree that the phone number you are providing may be used to contact you by National Debt Relief (including autodialed and prerecorded calls or text/SMS messages). Msg. and data rates apply. You are not required to opt in as a condition of purchase.

The sooner you call,
the sooner we can help:

800-300-9550

Search NDR Blog

Recent Posts

  • Free Holiday Shopping Budget Template To Keep You Out Of Debt
  • How To Host Thanksgiving Dinner On A Budget
  • Tips For Finding Good Last Minute Travel Deals
  • How To Spend Less Money For The Holidays
  • Take Note And Save Money While Holiday Gift Shopping
  • How To Scare Up Some Extra Cash To Pay Down Your Debt [Slideshare]
  • 10 Ways To Rock The Gratitude Challenge This Thanksgiving
  • How To Write The Perfect Salary Negotiation Email
  • When Should You Start Saving Money For Your Kids
  • The Best Budgeting App For Your Family

 

FAQs about debt relief

AFCC disclosure

National Debt Relief, LLC BBB Business Review AFCC Top Ten Reviews Gold Top Consumer Reviews Consumers Advocate Trust Pilot
  • About Us
  • Contact Us
  • Privacy Policy
  • Terms Of Site
  • Disclaimer
  • Sitemap

© 2019, National Debt Relief, All Rights Reserved.