This is something that is hard to understand for many people- and hard to be sympathetic to, I know. People with more money- even WAY more money than you, can and do have money trouble.
“How is that possible?” You may ask- or something more like “then you are an idiot!” Is the harsher reply. Well....
What if o told you, dear reader, that there is an almost 90% chance that anyone seeing this is probably one of the worlds too wealthiest people? “But I have no money in my account. I don’t own a home. I can’t even afford to order a pizza!” You might say. Yes. And that STILL puts you on the top wealthiest folks in the world. You see- “middle class” for 1% of the worlds population- not billionaires- but “working joes and janes” is already more than 99% of the worlds population has. You see what you DONT have but never consider what you do- especially the “little things” like clean tap water or regulated products and food.
When a developed nation goes through a financial crisis- like the recent American housing market- we see our “middle class” countrymen and say- yup. That guy could run out of money. I’m barely hanging in.” But somewhere that you can buy a literal human being for less than a couple grand, and a house is less than $1,000... well.... seeing you lose your $50 or $100 or $300 thousand dollar home on your 30,40,60+ thousand dollar salary... they must wonder how you could piss away such a fortune.
For the NBA players, entertainers deals and salaries are complex. A “7 million dollar” contract doesn’t mean you get it all up front, or in regular installments, or even that you get it all. Some is earmarked for various expenses and some is based on certain requirement. That’s still a lot though... except.... it isn’t if you live like you make millions. Quick- a magic spell had made it so that starting tomorrow you make 2-16x what you do now. What do you do?
If you said “give myself an allowance of the same amount I’m making now, change nothing, and save the rest..” you’re either tremendously practical and mature- or more likely you are lying and or lack self awareness.
Most people will want to pay off bills, credit cards. Pay off or buy a home, get a car, a new car, or just finally fix that thing that they haven’t been able to. They’ll help friends or family with financial problems they have, “pay back” people who have always been good to them, give their kids or their spouses “what the deserve” And the best of everything they can afford- and depending on maturity etc- will almost certainly at least “splurge a little” on the things they always wanted and couldn’t afford.
And... it adds up. Not only do many of those things come with upkeep- can’t but your retired folks or homeless brother a house they can’t keep because they can’t afford property tax- gotta pay that too. That Ferrari you always wanted or the pool etc- constant money. And do t get started on kids. The best way to get rid of money if you feel you have too much is have kids.
But there is also usually “lifestyle tax.” See- usually there isn’t a genie that gives you that money. Usually you have to enhance your career. You need to “network” and rub elbows with the “right people.” You have to be in the public eye, manage your “brand” and make sure you have a good media presence. You aren’t getting sponsor money and free swag from Rolex if no one is going to see you using their product, no one is going to talk about you or you aren’t popular enough to make people want to imitate what you do.
There are layers and layers to this- but in general- at a certain point in order to advance or just stay in the game- you have to “keep up.” Its hard to be friends with people who can’t understand your life. You either bring your pals along and likely have to pay their way, or make new rich friends- who likely want to eat places and do things that people with money tend to- not be frugal every night off.
Everybody gets themselves in the same box -- my salary is this, so I can afford this house and that car, they lock themselves into a bunch of obligations, and now if the money doesn't come in they're stuck.
None of us was prepared for a freaking pandemic.
But as an adult, you have to understand it's common sense to have money saved up for rainy days (or for a fucking hurricane)
You got pay $13 per hour minimum wage, it's totally understandable that you can't save up much (or not even a single penny cause life is hard)
But with over $ 100 000 per year, it's you and your spending habit
A quick web search suggests that even a no-name rookie in the NBA is making at least $800K their first year. Sadly, many people faced with this sudden influx of wealth ave no idea how to manage it well. Still, seems like it shouldn't be that hard to put a bit away in savings when you're making that much (or significantly more) in a year.
“How is that possible?” You may ask- or something more like “then you are an idiot!” Is the harsher reply. Well....
But as an adult, you have to understand it's common sense to have money saved up for rainy days (or for a fucking hurricane)
You got pay $13 per hour minimum wage, it's totally understandable that you can't save up much (or not even a single penny cause life is hard)
But with over $ 100 000 per year, it's you and your spending habit