by Scott Pape - June 5th 2009
Last Sunday’s newspapers ran the story that Mark Philippoussis had run out of dough, with a finance company seeking $1.3 million, costs and possession of his home after he served a few faults on his mortgage.
The playboy, who between sets lived in mansions, drove Ferraris, Lamborghinis, and Paris Hilton, apparently didn’t see that his wayward spending would soon catch up with him. OK, so a sports star flushing his dough down the dunny is a cliche – The Poo wasn’t the first and he certainly won’t be the last. That said, there were a couple of learning lessons for all of us.
The Dumb Person Advantage
In the interview Philippoussis was quoted as saying: “I didn’t understand that maybe I should ask questions about this or that or check things”
One of the wealthiest guys I know has a strategy he calls ‘dumb smart’. In any form of financial negotiation, he doesn’t try and impress the other party with how much he knows (which is generally always a lot more than the person he’s talking to). Instead he’ll say things like “Sorry, I just don’t understand, can you explain this to me really simply?”, or “What do you think is the worst that could happen here?”
Doing this takes the pressure off him and puts it straight back on the other person. The more they talk, the greater the chance they’ll say something stupid, and reveal the ace they’re trying to keep up their sleeve.
Income Doesn’t Equal Wealth
The most important lesson to be learned from the Scud saga is not to confuse a high income with wealth. My job puts me in contact with people who earn mega incomes, but they also have mega expenses. In many instances these people are poorer than the administrative assistants who do their dirty work and earn $40,000 a year.
Now at the age of 32, The Poo has had ‘game, set and match’ called on his estimated $10 million fortune.
He’d be wise to get a copy of my first book, The Barefoot Investor
It contains a solid, reliable, no-nonsense plan for managing your money that anyone can start immediately today.
Tread your own path!
Photo: http://www.flickr.com/photos/doomed/2051270533/
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