Mike tyson is the youngest world heavyweight champion in boxing history, and has accumulated at least $300 million to $500 million in his 20-year career. However, on August 2, 2003, Tai Sen filed a bankruptcy application with the bankruptcy court in Manhattan. This once rich champion has a pair of iron fists that frighten his opponents. Why can't he master the money he earned with hard work and let himself fall into financial crisis?
Robert Toru Kiyosaki, a famous investor, financial education leader and author of Rich Dad and Poor Dad, once told students in a speech at Harvard University: "The main reason why people are struggling in financial difficulties is that they have studied in school for many years, but they have not learned anything about money. As a result, people only know how to work for money, but never learn how to make money work for themselves. " Boxing champion Tai Sen is in financial trouble for this reason. Mr. Joseph, a financial planner at Harvard University, once analyzed the reasons for Tai Sen's financial difficulties and concluded that the main responsible person was don king, a boxing promoter in Tai Sen, who squeezed huge profits from Tai Sen, making Tai Sen's income unable to catch up with consumption; Followed by Tai Sen's second wife, Monica, who lived in luxury and wasted a lot of money in Tai Sen; Finally, there are huge legal costs arising from litigation.
The above reasons led to Tai Sen's financial difficulties, but in the final analysis, improper financial management became the chief culprit of its bankruptcy. Tai Sen's consumption is extremely extravagant. According to the court documents of his divorce case, Tai Sen's basic living expenses are nearly $400,000 per month.
From 1995 to 1997, he spent about $9 million on legal proceedings, $230,000 on pagers and mobile phones, and $4 100 on birthday parties. In June 2002, he owed $865,438+000 to take care of his tiger and $65,000 to maintain his limousine. In fact, after 199 1 year, Tai Sen's net income kept decreasing, but he didn't change his extravagant consumption habits, so he could not make ends meet.
There is hardly any financial planning in Tai Sen. As we all know, credit consumption has always been the basic consumption habit of Americans, so good credit and debt management has become the most important part of personal financial management. However, Tai Sen's debt management is very chaotic, and there is a complete lack of debt early warning mechanism. Since 1998, Tai Sen has been under great debt pressure, but he is used to credit consumption. On February 22nd, 2002, 173706, he bought a gold chain with 80 carats of diamonds. Even after filing for bankruptcy protection, his lawyer is not very clear about his assets and liabilities.
A champion who knows nothing about finance and financial management certainly has his own financial adviser, but his financial adviser not only failed to effectively increase his personal wealth, but also failed to carry out so-called cash planning, debt planning, tax planning and other financial planning. Raymond Byrne, a spokesman for Tai Sen, said that it was these people who used Tai Sen's funds indiscriminately, which led to the former champion's current predicament.
A boxing champion with a net worth of hundreds of millions will actually fall into a financial crisis and become a poor man under the circumstances of improper consumption and lack of financial planning. Therefore, for those of us who don't pay attention to financial investment, it is normal to fall into financial crisis with a monthly income of several thousand yuan or one or two thousand yuan.
When Robert Toru Kiyosaki gave a speech at Harvard University, he quipped, "I am very happy to be invited to give a speech here, which is even happier than I can earn 100 million dollars a day with one dollar. Of course, that's impossible. However, we can't dismiss a dollar just because it is impossible. On the contrary, we should know enough about it because it will determine whether you are rich or poor. "
Robert Toru Kiyosaki said to Harvard students at the end of his speech, "God has given us two great gifts: thought and time. It's your turn to use these two talents to do what you want. With every dollar bill flowing into your hands, you, only you, have the right to decide your future. Use it foolishly, and you choose poverty; Spend money on financial projects and you will enter the middle class; Invest in your mind and learn how to acquire assets. Wealth will be your goal, your future. You made a choice. Every day, in the face of every dollar, you are making a choice. Are you rich, poor or middle class? "
So remember, to avoid financial difficulties, high income can't solve all problems. People should not just work for money, but let money work for themselves.