Analysis Of 'From Riches To Rags From The Sunday Republican'

The article From Riches to Rags from the Sunday Republican business section from October 29, 2017, talks about how star athletes, after retirement, lose their fortunes within a couple of years. The article talks about a few of the main reasons that the athletes go bankrupt, such as, bad management and divorce. This article shows that even those with a lot of money can still lose everything because of poor personal finance skills. This article is important to everyone with money because it shows how if you don't take care of your money nobody else will, this goes for everybody, not just millionaires, we all need to be careful with how we spend and invest. It shows that having the bare minimum base knowledge of finance can help you not go bankrupt

When people don't know how to manage their money they don't make smart informed decisions. They don’t have a decision-making process that takes them through being all the steps to being a good consumer, they don’t know to make sure that there is enough money in their budget to buy a product. In fact, they don’t have a budget or even understand the necessity for one. We need a budget because it ensures that we have enough money for the things we need and the things that are important to you, and any good budget has savings for “just in case”. Having a budget will help you develop better financial habits, relieve emotional stress and assist you in achieving your financial goals. It will also help you assign priorities, what are your needs versus your wants. Without financial education, they also don’t realize the necessity of setting a financial goal for themselves that is realistic, specific, and has a clear time frame. Setting a financial goal helps you decide what type of actions to take during different times of your life. It helps you decide when you can spend and when you can save. They don’t realize that their budget changes as their life changes. When you go into retirement you are making less money than you were before so you need to change your budget to encompass

The article states “Mismanagement is a problem and that many athletes work with the same wealth manager or financial advisor their whole career.” Nobody but you are going to care about your money and know what to do with it as much as you do. When you have someone taking care of your wealth for you, you can’t follow the seven keys to effective budgeting as you would if you were doing it yourself. A financial advisor can’t identify and develop personal goals for you or assign priorities. When you leave someone with your money to help guide you and your investments but you don’t oversee what they’re doing then you have no idea what’s going on with your financial life. You can’t just hand off your money to somebody and say, “here you go, take care of it”, there needs to be checks and balances to make sure your advisors are doing the right thing. You need to be able to give them guidelines and check that they’re following them, but you can’t do that if you don’t have basic knowledge of how finance