Hello Sophisticated Spenders!
If you haven’t heard, there’s a new story about a celebrity going bankrupt.
Tisha Cambpell-Martin and her husband Duane Martin.
It’s both a sad and all too common occurrence.
I started this blog to make sure this NEVER happens to you!
Here’s what they did WRONG:
the Martins say they owe: $39,000 to American Express; $455,000 to City National Bank; $500,000 in loans given to their company, XE Visions; $400,000 to a company called Money Real Estate; $17,000 in student loans they borrowed for a nephew; money for a 2016 Range Rover they leased for $43,000; money for a 2014 Range Rover they leased for $67,000; and money for a 2016 Jeep Wrangler they leased for $17,000. (source the Root)
-Overextended their finances-You’re living beyond your means when you can’t pay your credit card off in full every month. That’s the plain and simple truth. Emergencies happen and that’s what an emergency fund is for. There’s nothing wrong with saving up for a big purchase (furniture, car, house) and then splurging AFTER you’ve saved the money.
-Jumped on the investing bandwagon-in one tweet, Mrs Martin claimed:
“Quick statement, have y’all seen the movie ‘The Big Short?’ … Yup we did file but its becuz my hubby n I invested n real estate, got involved w some loans b4 the BANKS caused the market to crash … Obviously couldn’t agree 2 a settlement with the banks, so we filed to reorganize, that’s all, but I so appreciate the genuine concern 4 my fam. I got the best supporters ever thanks TWITTER FAM,”
Girl bye! NEVER invest in things you don’t fully understand. Riding a trend or jumping on something that you aren’t familiar with is financial suicide.
-Simply made bad decisions: They leased a car and took out a loan for their nephew. I’m not saying never lease a car or help out relatives, but you need to help yourself first and do those things if you can pay for them in cash! They simply didn’t have the cash for those financial endeavors. Nice gesture but wrong delivery.
The Martins reportedly earned $7,655 monthly with their combined income. However, the couple was reportedly spending nearly $17,000 a month. (source Rollingout)
-failed to make adjustments with the times-[tweetthis]Once their income dropped below $8,000 per month, they STILL spent $17,000 per month. That can’t work cause…math.[/tweetthis] They should have downgraded, cancelled unnecessary expenses and services. They could have sold items they simply no longer needed. They could have read my posts all about starting side hustles.
Avoid team bad decisions and you’ll be just fine. I have respect that they were brave enough to share their story with the world. That takes courage. Please learn from these mistakes and live your life they way you deserve-bankruptcy and worry free!