NBA Players Welcome to the Real World

NBA Players make more than 90% of the U.S. population. They get to travel across the country for free by the NBA. You get paid for doing a job you love. Most Americans work a job that they hate and have no other options.

Many times players are lured into the NBA and believe that their lifestyle will last forever so they aren’t concerned with how much money they spend – but nothing lasts forever. Americans learned the hard lesson that nothing in life is guaranteed and that life can be hard.

NBA Players suffer from the Instant Gratification Syndrome, you want everything right now. You spend money that you earn in the future to buy things in the present. You have no right to complain that you can’t pay your bills. No one made you buy a multi-millionaire dollar home; spend money on partying, women, designer clothes, jewelry, and things that have no value. You made those choices.

You decided that living that lifestyle was what you wanted and more important than planning for your future. Don’t be like Chris McAlister of the Ravens.

Immigrants that were brought to this country or migrated to this country knew the value of hard work; they did whatever they had to do to make a living even if it meant making sacrifices or working multiple jobs. Americans are spoiled and have forgotten how to survive. If one option stops working, find another option.

Yes you should be treated fairly by your employer but you should always look for other options. You can use your celebrity status to create a radio show, a television show, a clothing line, a sneaker line, sunglasses, hats, become a speaker, become a board member or advisory committee member for a national company or start a business. So many options are available to you and are easier for you to attain because of your celebrity status and the people you have at your disposal.

NBA owners are denying players adequate pension plans and requesting stricter salary caps. You can’t have it both ways. You have to provide one option or other. This will continue to lead to future lockouts until owners realize they are nothing without the players. Here are 7 tips to plan for your future.

1. Save. Save. Save. Save at least 30-50% of your income each month.
2. Retirement. Sign up for the NBA Retirement Association. You only get a small amount of income but if you combine it with additional steams of income through endorsements or businesses you should be able to retire comfortably.
3. Downsize. Downsize your lifestyle. Who are you trying to impress with your ferrari, maybach, diamond watches, and millionaire dollar home. People may be fascinated by the things you have but no one really cares. When you retire what do you want people to remember about you, that you lived in a million dollar home that you couldn’t afford or that you helped your community.
4. Think About Tomorrow. You can get traded, released or hurt at any time. Plan for your future so that you don’t have to file for bankruptcy or foreclosure.
5. Role Model. Be the best person you can be and serve as a role model for youth and younger players to prevent them from making the mistakes you made.
6. Give. Donate to charities or start your own foundation. This helps to reduce your tax liability and provides greatly needed assistance to social organizations that have been affected by the recession.
7. Say No. Learn how to say no to friends, strangers, relatives who ask to borrow money or ask you to buy something. If you always lend money you only enable that person to be dependent on you forever. Show them how to earn their own money so they don’t have to ask you for money.

You determined your self-worth by the things you own instead of realizing that your self-worth comes from within. No matter how much money you have it cannot make you happy and cannot fill a void in your life.

Think how different your life would be during the lockout if you saved at least one year’s salary, if you only bought one car or if you lived in smaller house. When you experience a financial crisis, your true character is tested. You either become a winner or loser.

Determine that you will always be a winner. Don’t let anyone determine your destiny, determine your own destiny. Money can generate wealth or generate debt you make the choice.

Bankruptcy May Not Help Homeowners

Many homeowners believe that filing bankruptcy will help save their home and prevent them from going further into debt. Unfortunately, filing for bankruptcy if you are a homeowner is not as easy as you think. Approval for bankruptcy depends on your salary and the family size. Income limits are based on the state you live in www.justice.gov/ust/eo/bapcpa/20101101/bci_data/median_income_table.htm.

However, if have a higher income you can still file. You must provide proof that you are unable to pay your bills and have sought additional help in the past. You must provide documentation such as: tax returns, paystubs, bank statements, mortgage statement or rental lease agreements, detailed list of monthly expenses including, a list of all debt, amount owed, interest rates, canceled checks and credit card statements, retirement accounts, business income and debt, and child support. Be honest when providing documentation. If you decline to provide all the requested documentation required by the Trustee your bankruptcy filing may be dismissed. Do not include you SSN on any documentation provided. Mistakes in your documentation can cause delay or a dismissal. If you do meet the income requirements there are additional criteria you have to meet such as:

• You must take a credit counseling class prior to filing for bankruptcy.
• If you have enough income to pay some of the debt you may be considered for a Chapter 13 bankruptcy.

Here are 11 tips to consider before filing for bankruptcy:

• Bankruptcy fees when filing on your own cost approximately $300 when filing for chapter 7 (most debt cleared) or chapter 13 (repayment plan for 3-5 years). Bankruptcy filing fees when using a bankruptcy attorney can range from $1,000 - $4,000.

• Look for real estate investors in your city by doing a search on google “name of your city or state real estate investors”, i.e. “maryland real estate investors”, etc.

• Do not make any large purchases before filing for bankruptcy because this will decrease your chances of being approved.

• Don’t file Chapter 7 bankruptcy if your income exceeds your expenses.

• Don’t transfer credit card balances.

• Don’t make payments on any debt.

• Don’t file your tax return if you expect to get a large refund.

• Don’t cash out any retirement plans or 401k’s because this money is exempt from bankruptcy.

• Don’t take out any loans or open any new credit accounts.

• Disclose any judgments, collection accounts, and tax liens.

• Don’t bank where you owe money. Close the account and open a new at another bank. If you wish to continue doing business with the bank take all the money out of your account as soon as your direct deposit is posted to your account. If not, this will increase your chances of having your bank account garnished.

The following debt is not included in Chapter 7 bankruptcy: taxes and tax liens, student loans, child support and alimony, debts for fines or penalties to governmental agencies, debts for judgments in wrongful death or personal injury lawsuits, and condominium or townhome association fees. The following debt not included in Chapter 13 bankruptcy: some taxes, student loans, child support and alimony, debts for fines or penalties to governmental agencies, debts for judgments in wrongful death or personal injury lawsuits, debts incurred after filing your case.

Items that are exempt from bankruptcy:

• $16,500 in equity in your home

• $2,575 in equity in your car

• $425 per item in any household items up to a total of $8,625

• $1,625 in job-related expenses, books, etc.

• $850 in any property, plus part of the unused exemption in your home, up to $8,075

• Social security, unemployment, VA benefits, welfare, and pensions

Is Barnes & Noble Next?

On July 21, 2011, at a scheduled hearing Borders is expected to ask the U.S. Bankruptcy Court of the Southern District of New York to allow it to sell off all of its assets. If the judge approves the move, liquidation sales could start as soon as Friday; the company could go out of business by the end of September. Due to Borders closing all of its stores, 11,000 employees will be losing their jobs. This will have an impact on the economy as well of those families of those employees, more foreclosures, more bankruptcy filings, and more bad credit.

What does this mean for the book industry? The only two major bookstore chains left were Barnes and Noble and Borders. This is good news for Barnes and Noble but what about Borders customers. Will they honor the Borders coupons, Borders gift cards, Borders Bucks, Borders Rewards program, Borders Reward Plus? Will Borders Kobo e-reader owners be allowed to use the Barnes and Noble Nook to read their Kobo books? What happens to vendors who are owed money from Borders? These are some of the many questions that need to be answered.

Barnes and Noble has 717 stores in the United States and has 637 college bookstores. There are approximately 1300 independent bookstores in the United States. In some states there will be miles of neighborhoods without a bookstore. For those who do not have a computer or e-reader, buying books will be difficult. For those who enjoy going to a bookstore to view books before purchasing them, the buying experience will now be different.

For authors, especially self-published authors getting a booksigning will become more difficult since Barnes and Noble does not usually work with self-published authors. I was a fan of the Borders bookstore chain. Borders has more of a friendly family oriented feel. I loved the Borders policy where customers did not have to wait in line more than 20 minutes to make a purchase.

Hopefully Barnes and Noble is reviewing and analyzing Borders customers and using that to ensure former Borders customers enjoy their experience each time they visit at any Barnes and Noble store.
If you are a book lover and enjoy going to a bookstore to purchase books, browse books or attend booksignings or seminars, voice your concerns to Barnes and Noble about the type of customer experience you would like to see at Barnes and Noble. This is a critical time for Barnes and Noble and will determine if they continue to stay in business or go out of business but they need your help.

NFL Players are Just Like Us When It Comes to Money

Many NFL players go from a low to middle class lifestyle to upper or wealthy lifestyle in an instant and are not taught how to manage their finances and are not sure who they should or should not trust. Many NFL players are taken advantage of because of their financial status. In other instances they succumb to guilt from family and friends to take care of them, peer pressure, impulse shopping, unable to say no to those asking for money, living above their means, trying to impress others, being overcharged, or bad investments which causes them to lose their homes, have their cars repossessed or file for bankruptcy due to their bad spending habits and poor financial choices.

Many players buy things that have no value and have very little assets. Some forget to pay taxes, don’t keep track of their finances, make bad investments, get caught up in scams and lack basic business knowledge. This lack of financial experience and financial literacy education causes NFL players to buy things they can’t afford and try to portray a certain image that is difficult to live up to.

Approximately 40% of NFL players end up bankrupt after retirement. According to MSNBC approximately 380 players of the total 1,700 players live paycheck to paycheck. The average rookie salary is $320,000. When players get paid, after they pay taxes, pay their agent, publicists, accountants, lawyers and others on their payroll, pay for their lavish lifestyle with a home, multiple cars, jewelry, clothing, helping family and friends they have very little left.

Some NFL players are borrowing money from friends due to the lockout. Some players are getting payday loans called “lockout loans” provided by lending agents. Lockout loans for more than $60,000 can have interest rates as high as 36%. The NFL Players Association in advance of the lockout advised players to save at least 3 game checks and find additional ways to make money but many did not follow this advice. The NFL Players Association also provides financial seminars and classes for players who do not heed the advice provided or may not understand the advice provided.

Many players get caught up in the media frenzy and hype and want to give the appearance that they are wealthy when some are just one paycheck away from bankruptcy. Some players retire and don’t realize they are in financial ruin and need help until they retire.

Many players feel guilty by pressure from family and friends to take care of them financially which can cause a heavy financial strain on players. Family and friends see players on television and don’t realize how many expenses players have each month due to their lifestyle.

Many rookie players try to keep up with the spending habits of some of the veteran players and end up filing bankruptcy or foreclosure on their homes. In many instances players are taken advantage of by lawyers, accountants, agents and others who steal or do not keep their clients informed about their spending habits. In other cases, clients are advised about their poor spending habits but continue to spend until all their money is gone. The NFL Players association, lawyers, accountants, publicists and all who are on the payroll of the players as well as the players themselves are to blame.

My advice to all NFL players, read all books written by Warren Buffet who has lived in the same house for 50 years, drives himself everywhere, does not have security or a bodyguard, never travels by private jet, does not socialize with high society, makes popcorn and watches television, does not carry a cell phone, does not have a computer on his desk, buys clothes from the department store and is an expert in managing his money. You are experts when playing on the field, now it is time to be experts in managing your money – you owe it to yourself.

Medical Bankruptcy

The Medical Bankruptcy Fairness Act of 2009 is a bill that would amend title 11 of the United States Bankruptcy Code (Bankruptcy Abuse Prevention and Consumer Protection Act of 2005) would: 1) provide protection for homeowners with medical debt, 2) restore bankruptcy protection for individuals experiencing financial distress who serve as caregivers to injured, ill, or disabled family members, 3) and to become exempt from taking the bankruptcy means test for those whose financial problems were caused by serious medical issues.

If the bill is passed it would waive the “means test” and credit counseling requirements for those who to wish file bankruptcy.

A recent study shows that based on the effects of the recession approximately seven million Americans will lose their health insurance coverage. Employee spending on health insurance coverage has increased 128% between 1999 and 2008.

Economists have found that increasing health care costs show a connection with decreases in health insurance coverage. National studies show that the main reason many people are uninsured is due to the high costs of health insurance.

The United States is the only developed country that provides health insurance but has the largest number of deaths due to lack of medical insurance or lack of appropriate medical care.

Contact your loss congressman to have the bill passed to provide additional protection for Americans and their medical costs.