Over the years, several high-profile celebrities have gone bankrupt. The most recent is 50 Cent, AKA Curtis Jackson. He has a high income, but he also has a growing mountain of expenses. Jethro Nededog at Business Insider published 50 Cent’s expenses and income statements. $108,000 per month ($1,296,000 per year) is flowing out and, by my calculation, $271,219 coming in each month ($3,254,630 each year). That’s a 40% expense to income ratio. That not too terrible. But, when you consider the fact that 50 Cent has two multi-million dollar lawsuits hanging over his head, you can understand why bankruptcy is suddenly his best friend.
As a side-note, I find it fascinating that with such a high income, 50 Cent still has debt. He has a mortgage that he pays $17,400 per month on. He also pays $5,800 per month on his Bently lease. I mean, why not pay cash?! Even more amazing, 50 Cent spends $1,000 per month on personal grooming. That’s a lot of haircuts!
On the other hand, look at John Urschel, an offensive lineman for the Baltimore Ravens. As Tony Manfred of Business Insider points out, Urschel has a fairly high income – $564,000 per year. But, he only spends $25,000 per year, or 5% of what he takes in. He drives around in a used 2013 Nissan Versa that only cost him $9,000, or 6% of his $144,000 signing bonus from 2014. It’s unclear whether he paid cash for the car, but I can’t imagine why he wouldn’t have.
I really like the pic Urschel posted on Twitter. Two large, likely much pricier pickups, towering over his tiny clown car. He has such a great attitude about money and life. Urschel insists, “I’m driving my dream car.”
So, in the long run, which of these two will end up wealthier? My money is on Mr. Urschel! In the end, it’s not about the size of your income. It’s more about what you do with that income – how you manage it. If you’re careless with your money, or you use money to show others how much you have, there’s a good chance you’ll be joining 50 Cent in bankruptcy court somewhere down the road.