@@gators9570 Athletes going broke or becoming homeless is pretty common. A career ending injury, misbehavior, bad rep.. so many thing that can ruin a career so spending like this is not healthy at all at any salary.
Saving, being cheap is bullshit/overrated.. there's a secret recipe to life.. it's called work . Softened age does not Wana work more than 8 hours a day
The thing people seem to forget is that depending on what state you play in, you're losing about 45-50% in taxes on top of agent/financial advisor fees.
True. A lot of people are use to taxes being taken out of the money before it reaches you but sometimes it isn't and they miscalculate how much is theirs.
I worked in sports media for years and met a ton of former pro players in multiple sports. They all thought they were going to be set up for life and almost all of them blew it. It’s brutal. It’s a borderline crime that the leagues don’t force players to go through training on how to spend their money intelligently.
they do actually. NBA has seminars for rookies before they even play about financial literacy. they even have vets who lost money speak to them. unfortunately, it goes past their heads.
I was born in Seattle in 1973, where I grew up. Sonics and Blazers fan. Japanese-American. Do you know how James Edwards blew his millions? I saw in a local story in 2003, that "his millions are gone," and that he relies on his $80,000 annual pension from the NBA.
I believe Shaq described it best. A young guy who doesn’t come from money or isn’t financially savvy, gets a contract for tens of millions getting paid (let’s just say $25million) over 5 years. Many pro athletes only see the total package ($25million contracted value), not its annualized value. So they live like they’re making $25m/yr, not $5m/yr.
@@TheDHM3007 ye but that doesn’t matter there’s people like mike Tyson that lose hundreds of millions and we all know mike the 2nd greatest boxer after Muhammad Ali ever and if he was smart like someone like mj he would could of easily made billions cause remember mj as the greatest basketball player ever only 93 million dollars and now he’s worth 1.6 billion so imagine mike Tyson that already made half a billion from boxing alone he coulda easily be the richest athlete every over micheal Jordan and I say athlete not basketball player
I remember as a kid I'd calculate my parents finances and wonder how they lived paycheck to paycheck on over 80k combined. I figured about 50k would be more than enough to cover the bills and have some left over to save and invest. I've always had that mindset and so its hard to comprehend how people can just blindly blow through millions of dollars. Investing is literally 2nd on the list after the house. The shut these people spend money on doesn't even enter my head as a desire.
I had a friend who won $500k from a lawsuit, after the fees he was left will a little over $300k. He never earned more than $30k a year on a job. I remember telling him to invest 25%, put $30k away in a emergency savings, and don't tell anyone about his money. He didn't listen to anything I told him and in 10 months he was broke. A person has to be financially educated BEFORE they receive money in order to properly manage and grow it. If a person has a poor mindset they will always be poor financially regardless of how much money they earn.
Compared to Jayson Tatum, Reports And He himself said that He hasn’t Touched His nba contract money and is only living off his endorsements, And he’s gonna get a Max contract soon so Good for him being smart
Yeah this year was a massive letdown for the heat. tyler still has potential but not nearly how much heat fans were saying last year. Saw a guy saying he's gonna be better than Harden in 2 years lollll
Yeah his best bet will be a 6 man spark plug, especially with guys like duncan robinson ahead of him as shooters. I think he will be fine though, just maybe not an allstar.
I am sorry to tell you he is telling the truth . You aren’t mature enough to understand therefore here is the thing . Living with your rich parent doesn’t make you rich , it’s their money and you’re living in their world. Most parent don’t give money to their child because they want them to work for their own but they will do you nice things . It’s not because he didn’t live a life like jimmy butler that he doesn’t know what being poor is . His perception on life is just different than yours so just don’t clown what he said , because to me your comment made you a clown to my eyes .
Just because your rents may have money, doesnt mean they spend it on you. Mine had money and not many extra things came my way. Sure got ass beatings though
I'm no athlete, but when I was a college student, I would take my leftover money from financial aid and put it in a savings account. Sure, I was tempted to spend that money on other things, but I was taught to think of long-term impacts and save my money. By the time I left college, I had a nice little nest egg that later helped me get a car and my own place. Everyone I knew would spend their money as soon as they got the deposit, but I was taught to save and live within my own means (and you can still have fun within those limits). Whether it's $1000 or $1,000,000, the same strategy applies. You can be young and still know how to save and spend your money responsibly. That's why stories like this are so mind-blowing to me.
When a couple has been married for years and one spouse dies, it is advised to wait a year before making any major decisions. Anyone who wins the lottery or becomes a pro athlete should follow that advice. If I was advising I would allow 10% for fun and let the other 90% sit. Taxes are another issue most of these guys underestimate. After taking a year to learn how to have money, I bet many of these guys would make a lot of different choices. Being able to say NO is another skill that would be valuable.
Part of the issue being overlooked here is the "Pro Athlete" Mindset. You have to be more than a little nutty to think you can be a pro-athlete, even if you CAN make it (which most can't). Those folks are probably more optimistic than most and certainly more daring to risk their entire future on such a long shot as pro sports. Expecting folks with that mindset to be money smart is probably a bit goofy.
I've thought about doing a video on them. It's hard to pinpoint exactly how successful they are because they never share their channels. But yes the theories they sell like becoming a millionaire with RU-vid automation is silly
@@SpencerCornelia Spencer just check chace namic's Instagram , whenever he does something fancy, he says this is all thanks to youtube automation , join my program 😅🤣
@@SpencerCornelia I know for sure one of Kody's channels is Film Focus (ru-vid.com), and he shows in analytics the top video about Pawn Stars made $56,125.72 back when it had 15,000,000 views (it's now at 16M). But yeah the channel quality seems to be pretty bad because it's all automated with employees. It doesn't seem to have any super viral recent videos. Doesn't seem to be practicing what he preaches a whole lot, but maybe he just does a better job of hiding his best channels.
@@TheLaptopLegend they probably don't make more than $100 per day from those channels, but they probably do make 50k+ a month from selling their courses, they're paying a lot of pages on ig to promote them
@@rosalove9448 It certainly wouldn't surprise me. There's a lot of one hit wonders in pretty much any make money online niche that do the business model for a month until they realize how much easier it is to sell courses than actually do the business model itself.
I don’t really know how I came across your channel, but I’m extremely happy I did. I’ve been binging your videos because I found it very entertaining, but holy shoot man I didn’t realize how educational these videos are. I’m literally learning so much, THANK YOU!!
@@Rodrigo-is1hw no just hopes he maintains the money very well there are players like rodman who spent lot of money got into troubles with the law and now rodman doesn't even have a million dollars all am saying is i hope he maintains his money well to support his family after retirement thats all not hating.
His smartest decision so far was to rent a $5000/month apartment. Great location, not too expensive. Pretty much everything else, especially the cars for him and his family, is a string of dumb financial decisions.
@@Roberto-cc5nz coming to the draft with nice stuff doesn't really mean anything though...once yoh declare you cant start receiving money...either from endorsements or a loan from your agent until you sign the contract...that is a big way agents get these young athletes...give them a lot up front until the sign a contract after the draft
Worst financial decision: not buying a home. I bought my apartment 7 years ago and it has doubled in value. Most money I've made in my entire life. And I’m saving on monthly fees as they are 1/4 of what the renting a similar place would be. Renting = money gone. Buying = money invested. House prices could crash, anything can. But it’s still makes sense to invest in because a) you save on fees b) you buy something you need c) house prices have a historically great track record
@@josephscalia6264 agree. But one still has to mention that any market could crash. the idea ”people will always need X so X is a safe market” is dangerous! People will always need energy, healthcare etc - yet those markets are still volatile and not crash-proof. the market evaluation has already taken into account that people need these things - so if it turns out those things are over-valued, the market can crash badly. But that’s no different than any market. People should Invest in something and investing in a home still means you own a home - even if the market crumbles. Invest in stocks and you get nothing if it crashes.
Ok, this guy still getting hundreds of thousands a month and can buy whatever property he wants he’s 20 living his life to the full he can rent if he wants
@@r3a1itygamezz14 we know and the dude in the video said that especially when he can get traded to another team in another state so until he gets a long term contract renting is better
If he continue to play like shit, a single slight injury will sent him packing his bags to Shanghai and enjoying his new contract that’s way lower than what the nba pays him
@@fupalover The reason financial advisor does not stop him from buying liabilities is probably keeping him on. try taking candies from a three year old who is paying your bills, 😂😂😂
" at this level of wealth and status, even the financial advisors need to be checked" At absolutely any level of wealth, you should check your financial advisor. Know how they are getting paid, make sure they have a fiduciary duty to you
Yeah... my first financial advisor was some new rando in his 60s coming to my university saying that fiduciaries are useless because they're governmentally licensed meaning they're too bureaucratic. I fell for his shenanigans and his payment method was for every dollar I spent, he'd get 5 cents extra from me. He told me this business model would incentivize him to invest in my future so that I would have a lot of money later to spend, increasing his payments... Yea, protect your kid going off to university to avoid them maxing out their credit card and stuff. That man is now wanted by the police in my area and last I heard, he's skirted off to another state...
@@SpencerCornelia even so, a player as promising as herro will get a second contract even if he gets injured, wether or not a 3rd contract should be the question, which even if he plays bad or gets injured, it’s likely a team will gamble on him returning and reaching his potential since he’s so young.
I literally laughed out loud when Spencer used screen grabs of Milwaukee area real estate, as it's also my hometown, and I know *exactly* where those buildings are, even in the one case where an address wasn't given... Herro is certainly a talented player, and here's hoping he has a long and productive career.
Had he come from an upper middle class to high class family bracket, I don't think he would be under this mentality. The parents have a lot to do with their financial well-being and how they handle money in the future. Its likely he will land that second contract so he can still save/invest for the unexpected.
That's so true. Bill Gates comes from an "old money" family, with generations of money, education and knowledge (bankers etc.). Gates and Microsoft co-founder Paul Allen attended the same prestigious private school. Mark Zuckerberg's parents were also highly educated professionals, and he attended the elite Phillips Exeter Academy. This is true of several other entrepreneurs and tech founders such as Elon Musk and Vitalik Buterin. It seems that Herro's father is a former basketball player whose hopes were dashed when he suffered an early injury. I get "stage parent/manager" vibes from him, much like the fathers of say, Steffi Graf, Andre Agassi and the Williams sisters. However, others posting here have stated that Herro's family is very well off, and that they bought stuff like vehicles and expensive watches for him before Herro made it big. Herro is only 21 and already about to become a father! Children are expensive, and the wealthy spend a lot on their kids, including nannies etc.
Ngl I really don’t see how Herros spending is that bad. If it continued needlessly then I’d be worried but it’s a guy buying 4 cars (2 of which he’s probably not responsible for any further) once he gets his contract. And they’re not insane $200,000 cars that other rookies have been known to buy. If you asked me with a contract like that to wait another year to buy a reasonable car I wanted I’d think you were being ridiculous. This is taking into account that by this point he’s already established himself as an asset and also that if you’re good as a rookie, your rookie contract is pretty much guaranteed the whole way through. Even if you’re not very good. Look at Markelle Fultz. Hasn’t come even close to being worth the money on his contract while being seriously injured and he has had 0 issues getting teams to want him on their roster. Also would point out Tyler has more grounded vets in his ear like Butler, Haslem maybe even Pat Riley.
I have a saying that goes "if you ever have a million dollars and you ever need to worry about making money again, you did something wrong." But if you are 18-19 years old, idk how we could expect them to make good choices. They don't really even understand life at all yet.
Well there are some very smart 18~20 yr olds (I think Herro is 20 in this video?). Being young doesn't automatically mean dumb. Vitalik Buterin started up Ethereum at age 21. Mark Zuckerberg started Facebook in college (but had already received offers from then-big company AOL and Microsoft, to buy some music program Zuckerberg wrote in high school). Elon Musk had already sold a video game he'd programmed at age 12! Before they founded Microsoft, Bill Gates and Paul Allen were schoolmates, aged 17, who formed a venture to process traffic data.
@@hothotheat3000 The problem is, most young people, especially those who come into money suddenly and are from low income/low education (especially regarding financial management) don't do that. Instead they see it as a vast sum which they believe will last a lifetime - so why not splash out on a whole lot of expensive purchases? Spoil yourself and your family etc. But then they are surprised to find they've blown through it quickly. And the problem with sports stars etc. is that they feel they need to impress with a lavish lifestyle, before they've properly secured a lifetime's worth of invested income. They tend to attract a lot of hanger-on types who mooch off them, further draining their finances. And try to "keep up" with celebrities or others who spend lavishly but have higher incomes and more to fall back on (people from very wealthy families who can fall back on their family wealth such as Paris Hilton) if they ever get into debt. In contrast, the likes of Bill Gates and Paul Allen, who built up fortunes early in their 20s, came from well-off or wealthy families (Gates' family were in banking), do not blow their early windfalls, despite being in their 20s. That's because these people usually grow up knowing about investment and financial advisors etc., and have personal connections that they can call on for advice. So they know how to manage their money. And their friends and peers (school and university classmates etc.) are generally from the same background, have some money, and won't be mooching off them. On the contrary, their friends will often help them by acting as an informal network to get access to possible investors and advisors such as lawyers, stock traders, investment advisors, and business executives. And also, these are very smart, educated young people (Musk has 2 degrees I believe, in engineering etc.) who develop their own businesses. That's in contrast to athletes who get their fortunes as payment for their sports abilities, not their brains. And they are basically employees, not business owners. When their employment ends, so do the big paychecks, with no retirement benefits.
Nah that’s not the problem, the problem today is social media, call me crazy but social media inspires these young ones to have a crazy lifestyle that they can’t even afford n lookin up to ppl who can’t even afford there lifestyle unless they a celeb which even a good chunk of celebs still do payments not even full on cash, all though if they can make it work w/ payments then fair game (I’m 19 btw not an old head sayin this) it’s the truth tho 🤷🏽♂️ EDIT: btw I’m also sayin not every younger head is like this, but the rate ain’t stoppin either for stuff like this
@Juan nope. Athletes were going broke well before social media. People have been flexing way before Instagram was ever a thing. The problem is the company that they keep, and their mindset that the money will last forever. That’s the root of the issue.
If you feel bad, just remember that Victor Oladipo turned down a 45M 2 year deal with the Pacers only to get injured and is now on minimum veteran's salary.
I disagree with the renting. He’s better of purchasing the place, even if he gets traded off he can lease the place out and get monthly or if not weekly income.
Clearly broke... he likely gets more money from the bank just from the interest alone, leasing to make money is what people do when they don’t have enough money to lease to the bank
I always thought Tyler seemed like a airhead, this confirms it. I think he will have a journeyman career in the nba so hopefully it works out for him financially and career wise. Spencer made a good point, spending hundreds of thousands of dollars a luxury items for family is not taking care of them, if only these guys realized it.
I'm here from the future after he had a average second season full of articles about how the Heat are concerned about his priorities and the Heat went all in with trades and FA signings and extending Butler. The reality of what this guy was saying is pretty close.
As a mom I would never let my child spend that kind of money on me. unless they are so set up for the future that in the worst case scenario the money spent would be pocket change figuratively speaking.
I am a property manager in the apartment industry and I just can’t understand why anyone would need a 5k/mo apartment. Even if it’s just for a year, why not buy a house, do a couple minor repairs like countertops, paint, and flooring and sell it for a profit? I’m from stl and we have plenty of athletes here that live in $1200/mo apartments right outside of the city where the sports arenas are. I just don’t think a luxury apartment makes sense as a rookie.
It was so eye opening when someone taught me about property taxes. For example if a player buys a $10 million house, they will have to pay $100,000 in property tax every single year for the rest of their lives. So if they blew all their money and now they’re retired, they’ll go broke in a only a few years.
Just don’t get married, NEVER have kids, don’t do DRUGS, and hire an ACTUAL accountant Edit: if y’all ever get rich this advice will pop up in your head like if yoda told you, so your choice following up, or going on a different road
Ay ay hold up I understand no doing drugs and hiring an accountant but bruh you can settle down if you want, just be responsible about that shit you don’t need to cut that out of your life entirely
@@RylanForever Fax, life isn’t just about saving. If you got money there’s nothing wrong with spending it on your family and your own well being. Just be responsible with it and don’t do illegal stuff.
Wow I know Tyler’s father. I worked for Chris and at remember Chris Herro always going to basketball camps all over the US and that was in 2010-11 even then Chris know his sons where going to be special. Congrats to the Herro family I’m so happy for them.
All NBA fans thought he would be the next superstar because he was playing like one. Rn nobody, not even heat fans think he can be anything more than a good role player.
You missed a clip. You go from reprimanding him about his car purchases to spending a lot of money on clothing without him talking bout how much he spent.
if my child became a pro athlete - there's no way i would allow them to spend 5k buying me a stupid purse or designer suit - i would tell them to invest their money and avoid spending it on dumb stuff like that. i think pro athletes have a lot of enablers in their families who allow them to be leached and blow their money because it benefits them, rather than it benefitting the player.
Yes.. a lot of the time, I feel like the player is just surrounded by too many liabilities.. I could definitely see it being hard to say no to everybody.. financially speaking..
You a loon, his parents gave everything for him to get to where he is and he Acc made it, his parents earned that bag and he wanted to treat his parents for what they gave for him. You either aren’t a parent or never pushed HARD in sports it’s a 5k bag that shit is like 2 months wage for an average salary person this guy makes more than 10 times that a month gtfoh
I will speak to Shaq I soon as I enter the league 😂, that’s my financial advisor. He got more sponsors that I can count on my fingers. Seriously perfect advisor because he has made the stupid rookie decision with money and learned from it and started to invest smartly with it. Now he just chill and enjoy life while just showing up and getting paid
I live in Milwaukee and when I seen that he bought his mom a Porche I thought to myself oh that’s nice for the couple months she’ll actually be able to drive it 😂. He should have bought her something with all wheel drive lol
He’s definitely going to get a second contract. It’ll be a massive one too. He’ll probably make over 200 million in his career. And even if he breaks his leg, the heat will still pick up those team options since the amount of money they are paying his right now is a bargain for what he is providing for the team/his potential.
Exactly. This isn’t the NFL. NBA teams throw money at players just for being young even if they aren’t performing. And are willing to pay people with potential just to be injured under contract. A guy producing like Herro has about 5 years where he’s desired even if injured
@@gators9570 If you think what the content creator said is the joke,remember the tallest NBA player Hasheem Thabeet...He was the 2nd pick back in that year of KD,J.Harden...How many yrs he played in NBA?!
Happy Animals Tv 4!!! Lmao he was worthless on the court and played 4 seasons. Teams hoped they could develop him. Now for sure I hope he was cautious cause obviously he didn’t have a long future in the NBA. In the case of Herro 10 games into the season it was already clear his shooting will keep him in the league for a long time
Your take on the financial advisor part of the video isn’t necessary true. Advisors from big companies can still take advantage of naive investors. Hopefully tyler hired a fiduciary financial advisor, because they are legally bounded by law to put the client’s best interests before their own
When I first watched the video with Tyler, I thought he was making smart decisions compared to others. Granted, if I had that much money I wouldn't have made choices like his, BUT, still left the video thinking he was doing better than the average person who finds money like Tyler. But damn... this video analysis was very sobering haha.
@@matthewtestani6207 he has a lifetime contract with reebox that pays him $800k a year and a 32milliom dollar trust he will get in 2030. He did file bankruptcy after his playing days which is crazy because he made 200 million just from playing. It seems nobody ever taught him how to be financially responsible coupled with being over generous to the leeches that hung around with him. Hopefully when he gets that 32 million he will have learned how to use it wisely to last him the rest of his life.
Tyler also got his girlfriend pregnant... Now he has to put more money to the side raising his child and setting up a trust fund for generational wealth. He has to consider if he plans to enroll his child in private school or public. Even pay for daycare or nanny expenses.. I'm not sure how much Katya makes but she seems well off. And if ever tries to leave his gf he's gonna have to owe child support. He dug himself into a bigger hole!
with that much money, put it in the S&P every year. 5-6 years down the road, he'd be making more money from stocks each year than his NBA contract. That's when you can truly coin the term, "don't have to work again"
@@GigamonstersMinecraft I’ll be honest idk if your a NBA fan but career ending injuries don’t happen to most NBA players only to players that have to real worth and unproven. Herro after these playoffs has proved himself and even if the Heat don’t give him a second contract for some reason 29 other teams will. NBA is different in this league you can tear your Achilles then that summer sign a max contract. Or tear your Achilles and continue to be signed by two other teams while your not even really playing. You can literally snap your leg in half like Paul George and then go into prime and rake in all the money. NBA is different if your proven a team will take a chance on your even if you sustained a “Career ending injury”.
I don't get the idea of buying your loved one an expensive car as a present - they are high maintenance, ineffiecient in fuel, prone to being stolen or vandalized if you don't have your own garage, their insurance is higher than regular cars and their market value drops incredibly fast. Literally the second it leaves a car salon, it is already worth less. And that value decreases with each year - doesn't even matter if you ever drove it or not. If you really want to show gratitude to your parents, think of how can you spend your money to legitimately improve their quality of life. Buy them something that is either: a) Practical, b) Increases in value over time and/or c) is long-lasting. Or if nothing else, just cover their monthly expenses so they could save their own money.
If he continues to spend his money like this he might go broke. You have a bad mindset and you would go broke if you where in a position as Tyler Herro. The dudes giving him good advice.
@@liluzivert6456 it's his hard earned money, he should spend it how he likes, it isn't my mindset bitch, it's just do you your own life, don't worry about his or mine.
