Michael Jackson (August 29, 1958 — June 25, 2009) was a singer, composer, dancer, and philanthropist from the United States. He is known as the “King of Pop” and is considered as one of the twentieth century’s most prominent cultural leaders.
His contributions to music, dance, and fashion, as well as his publicized personal life, made him a global icon in popular culture during the course of his four-decade career. Jackson impacted musicians from a variety of musical genres. He popularised sophisticated street dance movements such as the moonwalk, which he coined, and the robot through stage and film performances.
Why did Michael Jackson Die Broke And How Do We Learn From His Mistakes?
Michael Jackson‘s biggest issue was that, despite his declining salary in previous years, he never adjusted his spending habits. A forensic accountant testified in 2005 that Michael spent $20-30 million more per year than he earned and was in debt by up to $285 million. In order to stay solvent, he borrowed $200 million from Bank of America in 2001. Neverland, his 2,600-acre private retreat, cost $5 million per year to maintain and was repossessed twice.
Unfortunately, Michael was unaware of the distinction between good and bad debt. Borrowing money to cover living expenses and purchases that never pay off is considered bad debt. It may provide temporary pleasure, but it provides no long-term benefit.
Instead of buying the latest large-screen TV or going on exotic vacations, save more money to eventually start investing in assets that will increase in value over time. Good debt is defined as debt that generates money for you over time. Borrowing to pay for post-secondary education, seminars, books, retirement investments, strategic home upgrades, or the purchase of a revenue property are some examples.
True, Michael chose some good debt, such as purchasing the rights to 259 Beatles songs. His estate is now believed to be worth more than $2 billion.
Here’s the main point you should remember. Live within your limits and set aside at least 10% of your income to invest in assets that generate cash flow. If you do this, you will never have to lose sleep wondering about how you will make ends meet.
Talk to your Dominion Lending Centres mortgage consultant for advice on how to use the equity in your home to begin investing in return-producing assets so you may enjoy financial security. We can provide objective counsel as well as access to innovative, accessible financing to help you position yourself for a prosperous future.
Source: www.ghgossip.com
