A while back, I blogged about three celebrities that ran into trouble with their finances, even though they made piles and piles of money ca$h. It turns out that professional athletes are also prone to mismanaging oodles of moolah, and there are three ways we can learn from them! The New York Times' Ron Lieber teaches us some financial lessons from the missteps of some professional athletes. (Mainly Michael Vick, though.)
SLOW: The article suggests that if you suddenly come into a large income or a lump sum through inheritance or something similar, to just take a deep breath and avoid going crazy right off the bat. Don't be like Michael Vick and immediately invest it just because you can. Figure out how your cash flow is going to be for a few years before you take any risks.
SMALL: When you do decide to make a purchase, like a house, start small. Michael Vick blew between $120,000 and $150,000 on jewelry for his brother, but instead of blowing a monstrous amount of cash on family members, take it easy at first. Figure out exactly how much money you have, and what income you can depend on, before getting caught with an out-of-control mortgage or crazy amounts of debt.
SCRUTINY: Be wary of relying on advice from people you know or friends of friends. Although you may trust them or feel obligated to rely on them, make sure you do a complete background check before making any major financial decisions based on someone's advice. Michael Vick relied on some pretty shady people, which got him into a boat load of financial troubles.
Slow, small, scrutiny. Not so tough, right? Well, I think I'd go a little crazy if I was suddenly Richie Rich-rich, so I'm taking Mr. Lieber's advice to heart.
This would pretty much be my life. (source)