Understanding how money works and figuring out how to manage it wisely takes time and knowledge of markets and other factors. It has happened to many notable names over history: they lose everything. And if it can happen to them, it can happen to anybody. Smart financial decisions are a key part of maintaining a robust economic standing and peace of mind. Regardless of your tax bracket, knowing that your money is being well-handled and properly invested, is a great weight off your shoulders.
Notable Figures Who Have Mismanaged Their Cash
Take the case of notorious heavyweight champion boxer Mike Tyson. An unforgettable character and monster athlete, the young Tyson rose to prominence at a very young age. Yet, despite his many millions, a lack of money management and wise choices led him to bankruptcy. During his first 18 years of his boxing career, the boxer earned over $400 million dollars. His life during his prime, however, was nothing short of wild and full of excesses and mishaps with the law. All of this cost him everything, leading him to file for bankruptcy in 2003. Of course, it was said that Tyson’s lavish spending on jewelry, mansions, limos, motorcycles, and let us not forget the Siberian Tigers, had a lot to do with this financial downfall. Money can’t buy everything. It has a limit and if you stretch it too far, you might find yourself in dire straits.
Let’s take another notable figure and recognized name. You’ve likely seen actor Nicolas Cage in a movie or two in the last few decades. He is a household name for bad romantic films, overacting and cheesy action flicks of the late nineties. Here was a guy that was raking in up to 20 million apiece for action movies like Gone in 60 Seconds. By 2009, however, all that case had dried up after a mega spending spree that was said to rival that of Mike Tyson. Apparently the actor himself wanted to rival Tyson’s lavish spending style. Some of the things Cage threw money at included: supercars like Ferraris, rare jewelry, a shark, a crocodile, two king cobras, a dinosaur skull, and a private jet. Oh yes, let us not forget the pyramid tombstone in a famed New Orleans cemetery.
So how did Cage get out of this? Interestingly enough, the actor learned a valuable lesson, it seemed like. After his whirlwind spending, the actor worked his tail off in a series of movies from 2009 to 2016. He got a boost from this.
Why Money Management Can Help
Of course, not everyone has the ability to star in a few movies and rebuilt their finances from the ashes of their bankruptcy. And yet, managing money is important in all levels of society. In the higher tax brackets, it can get a little more complicated simply because there is more to deal with. Let’s take a look at how money management can help:
Develop an Investment Strategy. A goal without a strategy often falls by the wayside. A solid financial advisor of a money management team will make sure that an individual strategy for your situation is developed. A money management expert will sit down with you and discuss your goals and your vision for your investment and portfolio. With this information, they will be able to help you make sound financial decisions and better allocate your funds in productive and fruitful ways.
Maintain Peace of Mind. While this is somewhat of an intangible function, it is reported to be one of the biggest reasons why people choose to work with a financial expert. Worrying about your finances on a daily basis hardly seems worth all the work you’ve already done to get where you are. Most people want to be able to relax and know that their money is in good hands while knowing that they are involved and hands-on at the same time. A money manager will always consult you and maintain communication so that you are always aware of how your money is doing.
Comprehensive Financial Planning. Your money is not just about investment. There is a lot that goes into financial planning and, across the board, every aspect of it is important. Your retirement, for example, might very well depend on managing your finances as you approach that crucial time.
After all, the more money is at hand, the more time that is required to manage it. A professional can help guide you towards the most effective and efficient solutions for you.
Get Professional and Effective Wealth Management With Herrera Group
Here at Herrera Group, we help a wide range of individuals manage their wealth and prepare for retirement. An all-encompassing approach to your finances might mean the difference between peace of mind and constant worry. Give us a call today and prepare your finances for the present and future.