Cam Newton says athletes go broke because they keep living lavishly long after their million-dollar checks end

At the height of his career, the former Cam Newton, NFL MVP, and Carolina Panthers Qurtubbere, says he earns nearly $ 20 million a year. However, in a recent video on his YouTube channel, Newton admitted that he was making online content “to keep the lights.”

The overwhelming acceptance of the Newton is withdrawn on a common struggle for retired athletes: money management as soon as large salaries stopped.

He points to his own situation as the “first reason” why many wealthy players ended – their failure to expand the scope of spending when they take their income.

Here is how unwanted expenses can flutter until the salaries of eight numbers.

Unlike the stereotypical athlete, Newton insists that he did better in managing his money while his career was still active.

“I had never had a financial advisor, but I was never surprising-I am still still,” says 36-year-old.

Although federal income taxes and state income reduced his salaries at home to approximately $ 12 million per year, Newton estimates that his annual expenditures range between 5 and 6 million dollars-blessing some fields for saving and investments.

However, he says that many athletes fail to admit the fact that their income is temporary, while their lifestyle is permanent.

Although he no longer makes eight numbers annually, he says that his expenses remain more or less than the same, with private schools, home maintenance, alimony and luxury purchases that drain his savings.

“These things never leave,” he says. “Your public expenditures never change. Your income changes, but your expenses must change with it.”

Unfortunately, most Americans expect their expenses to change more than their income. According to the latest survey of consumers’ expectations from the Federal Reserve in New York, consumers expect that family income will rise by only 2.7 % next year, while expenses are expected to increase by 5 %.

This rapid lifestyle is one of the main reasons for struggling with highly high income families. Nearly 36 % of consumers who received $ 200,000 or more per year lived in a salary, according to PYMNTS survey. Meanwhile, a bank survey poll found that 13 % of American consumers had no emergency savings and that 1 out of 3 have more credit card debts than emergency savings.