If your job for about 10 years paid you more than $100 million, how would your life be like now? Sana hindi katulad ng dating NBA star na si Vin Baker na naubos ang lahat ng pera, naging mang-iinom, at ngayo’y nagtatrabaho nalang sa Starbucks!

8 - Vin Baker NBA Starbucks

Photos courtesy of ESPN and Providence Journal.

Yes, you read that right. And no, hindi ito typo. Baker indeed squandered over $100 million — his income from a lucrative NBA career — and he’s now aiming to rise up the ranks at Starbucks.

Paano ito nangyari? Paano ka man lang makakaubos ng ganoong kadaming pera? At ang pinakamahalaga, anong Smart Money Tips ang matututunan natin sa lahat ng ito?

You’ll know soon enough! We’ll start things off by sharing with you an article from Foodbeast that summarizes Baker’s experience and provides gems of money management knowledge that Baker learned firsthand.

Vin Baker went from a $100 million NBA career to working behind the counter at Starbucks — and he’s happy about it.

Basketball fans may remember Baker as the All-Star 6’11” power forward who played for the Milwaukee Bucks and Seattle SuperSonics during his NBA prime. In 2000, he earned a gold medal after helping the U.S. team defeat France in the Olympics. In his impressive 13-year career, he amassed over $100 million, only to eventually lose it all to alcohol addiction and financial mismanagement.

8 - Vin Baker Team USA

Now 43, Baker is training to manage a Starbucks, serves as a minister at his father’s church, and works to support his four kids in Connecticut, according to a profile on the ex-NBAer by the Providence Journal. From multi-millionaire to Starbucks barista, Baker seems happy with his new life now, but he’s also got some words of wisdom for everyone who comes into contact with a huge amount of money in a short period of time.

Photo courtesy of FOX News.

Photo courtesy of FOX News.

While the extreme wealth he had in his former life is what most people dream of, Baker told the Journal that, for him, it was a recipe for failure:

“When you make choices and decisions and think that it will never end, and then you get into spending and addiction and more spending, it’s a definite formula for losing. If you don’t have perspective in your personal life and you don’t understand what this $1 million or $15 million means, it will go.”

Baker told the Journal that he’s been sober for four years now. In the years that followed his retirement, Baker was forced to foreclose on his multi-million dollar mansion in Connecticut, he lost money in a failed restaurant venture, and he sued his accountant for mismanagement.

All of it contributed to his $100 million savings disappearing.

Since then, Baker’s picked up the pieces of his life and he is now very happy working at Starbucks. “In this company there are opportunities for everyone. I have an excellent situation here at Starbucks and the people are wonderful,” he said.

Reflecting on his life, the once-talented player has a warning of sorts for many in the NBA who are at risk of falling into the same pit.

“When you learn lessons in life, no matter what level you’re at financially, the important part to realize is it could happen. I was an alcoholic, I lost a fortune. I had a great talent and lost it. For the people on the outside looking in, they’re like ‘Wow.’”

Baker suggests that more financial management resources should be in place to teach younger players how to handle multi-million dollar contracts:

“I think in professional sports today teams have to deal with the personal challenges of giving young men this extraordinary amount of money. For me it was a struggle. I think when you’re giving guys who aren’t even All-Stars $80 million, there should be a framework in place where these kids can talk to someone.”

In Baker’s experience, the saying that money that comes in quickly can leave just as fast holds true:

“I’d want guys to not take the money for granted. It can be here today and gone tomorrow. It can be gone from the wrong financial choices and decisions and people that you’re involved with or, in my case, gone from things that you struggle with off the court. As quickly as that contract can be signed, there are a hundred things that can also ruin it.”

Baker recommends that young players only surround themselves with knowledgeable and trusted people and to always be aware of their expenses:

“I would insist that you surround yourself with the person you trust the absolute most, someone who can tell you, ‘You’re wrong, don’t buy that, don’t go there, that person’s no good.’ I would also say be able to monitor every single dime that comes out of your accounts as if you’re a Starbucks barista. My check here I know exactly where my money goes. Don’t trust it with an accountant or a family friend. Make sure you’re aware and be responsible because next thing you know people are stealing from you.”

While most expect the fast lives of ex-millionaires to end in jail or worse, Baker ended by talking about the real strength required to pull his life together to become what was most important in his life — a good father and family man.

“For me this could have ended most likely in jail or death. That’s how these stories usually end. For me to summon the strength to walk out here and get excited about retail management at Starbucks and try to provide for my family, I feel that’s more heroic than being 6’11” with a fade-away jump shot. I get energy from waking up in the morning and, first of all, not depending on alcohol, and not being embarrassed or ashamed to know I have a family to take care of.”

After all, as Baker put it:

“The show’s got to go on.”

 

Source: Foodbeast

Lessons learned

Anong Smart Money Tips ang matututunan natin mula sa experience ni Vin Baker?

1. “It’s not about how much you make, but how much you keep.”

 

This old saying never goes out of style.

And it applies to athletes, celebrities, and high-income earners more than anyone else! That’s because they are the ones who are most susceptible to overspending, given their very high incomes and lavish lifestyles.

In fact, studies have shown that it takes athletes an average of 5 years after retirement to lose ALL the money they’ve ever earned and go bankrupt! Case in point: Bukod kay Vin Baker, si Antoine Walker din ay biktima nito. He filed for bankruptcy just 2 years after retiring from the NBA!

6b - Antoine Walker broke

That’s why we should always remember: It’s not about how much money you make, but how much you money keep. Money management at any income level is important. If you can’t even manage a P20,000 per month salary, how can you be expected to manage P200,000?

You probably won’t be able to — and things will just get worse.

Kasi HINDI mo mareresulba ang problema sa pera sa pamamagitan ng mas madami pang pera. If you’re a financial disaster at an income level of P20,000 per month, you’ll just become an even BIGGER financial disaster at P200,000 per month.

 

2. Money management is not just about budgeting and saving.

 

The most common notion that people — even personal finance gurus — have about money management is that it simply involves budgeting and saving money. That’s incomplete!

Kasi bukod sa budgeting and saving, money management also involves setting financial goals and tracking them!

After all, gaya ng ilang ulit na naming sinasabi:

The true cost of your financial goals should be the basis of your savings.

This is why setting financial goals is important. If you do this, you’ll know how much you have to save every month to reach your goals. This is saving with a purpose!

And by tracking your progress towards goals, you keep yourself focused on them, giving you an even higher chance of reaching them in the future!

 

3. You must learn how to manage yourself.

 

Nasabi na rin namin ito pero dapat lang na sabihin namin ito muli:

Aside from learning how to manage money, you must also learn how to manage yourself.

Too often, the downfall of those who became rich was also caused by personal issues that were amplified by having lots of money.

With more money comes more problems, they say, and we’ve seen it in athletes and celebrities who lost their millions to drugs, gambling, and reckless spending.

Nakita din natin ito kay Mike Tyson, a professional boxer whose net worth once reached $300 million. He squandered all this fortune — spending $2.1 million on cars alone, even buying a tiger, and becoming a drug addict! He has since gone bankrupt, struggling until now to pay his debts with the US Internal Revenue Service.

6b - Mike Tyson tiger

As you can see, money is a powerful tool. Whether it will bring you greater success or huge downfall will depend on how you manage money and how you manage yourself. So make the right choices!

 

4. Don’t lose hope. It’s only over if you give up.

 

Marahil ay may mahirap kang pinagdadaanan. Baka pinansyal pa ang problemang ito. O kaya baka nahihirapan kang makamit ang iyong financial goals.

It’s OK. Everyone — young or old, rich or poor — goes through these troubles. What we would just want you to keep in mind is that you have to “keep on keeping on.”

Keep on working. Keep on budgeting. Keep on saving. Keep on learning about money. Keep on moving forward towards the achievement of your goals. And like what the great Prime Minister Winston Churchill allegedly said as a one-line graduation speech to the students of Harrow in 1941:

Never give up, never give up, never give up.

8 - Winston Churchill never give up

Kaya huwag kang mawawalan ng pag-asa! It’s only over when you give up.

Moreover, take inspiration from Vin Baker himself. Despite losing $100 million and seeing his world crumble, he kept on and perfectly summarized his resurgence when he said:

“For me this could have ended most likely in jail or death. That’s how these stories usually end. For me to summon the strength to walk out here and get excited about retail management at Starbucks and try to provide for my family, I feel that’s more heroic than being 6’11” with a fade-away jump shot. I get energy from waking up in the morning and, first of all, not depending on alcohol, and not being embarrassed or ashamed to know I have a family to take care of. The show’s got to go on.”

And if you choose not to give up like Baker, rest assured that Money University’s here for you. In fact, this is the reason why Money University was created! Hindi mahalaga kung nasaan ka na ngayon o ano ang pinagdaanan mo — as long as you want it, we believe that YOU can learn the 5 SECRETS of financial freedom in just 20 minutes!

 

So, will you keep on keeping on? Will you keep working, saving, and learning? If yes, let us know by commenting “I WANT FINANCIAL FREEDOM!” in the comments section below!

 

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