Michael and Madoff

The King of Pop. The King of Wall Street. Michael Jackson and Bernard Madoff both crashed and burned.

Mr. Jackson was about 500 million dollars in debt -try to get your mind around that number. Mr. Madoff went through billions of other peoples money. Two people who had so much, yet have so little to show for it. One is bankrupt and gone, the other is disgraced and facing 150 years in jail.

Money is a very powerful thing. And although we do not like to think about it much, money has the power to destroy – ourselves, our families, and others.

Besides all the gossip, all the hype, what can we personally learn?

• It is not how much you make, but how much you spend that determines wealth. Spend less, you get wealthy; spend more, you go broke.
• Along the same lines, the “just a little bit more money syndrome”  will not help you-if you do not have a plan a little bit more will be spent when you have a little bit more.
• Friends and Family may not be the best financial advisors.
• Again, along the same lines, you need to be careful who you trust with your money, even the “experts”.
• If it is to good to be true, it is. Be cautious and wise – get details.
• There is evil out there. Everyone wants to separate you from your money.
• Without a plan, you could be the next victim.
• Money is powerful – it can tempt you to do things you never dreamed you would do. Respect the power and lure of money. Make boundaries. Set up a hedge of protection.

I am sure there are many more lessons that could be learned. One more is that it is easier to learn from other people’s mistakes than learning from your own. Feel free to add your own insights in the comments.