Ed McMahon Can Save Your Financial Life.
June 27, 2008
He’s the guy who surprised people every year with those million-dollar checks from Publisher’s Clearing House. He hosted or co-hosted a ton of shows. And he pitched everything under the sun.
But at the tender age of 85, Ed McMahon finds himself in a deep financial mess. His mortgage company is foreclosing on his multi-million-dollar house. Citibank is suing him for hundreds of thousands of dollars in credit card debt. And he can’t work because of an injury – at age 85.
I can see how some people can feel sorry for Ed – he’s an 85-year-old celebrity who’s broke. And I can see how some people can’t feel sorry for him – he’s a celebrity who’s made hundreds of millions of dollars.
But whatever you feeling are about him, there’s one thing you can learn from him – manage your money wisely.
You see, if Ed had just done a little better job managed his money, he wouldn’t be in this situation now. If he didn’t spend more than he made. If he didn’t buy so much on credit cards. If he kept a closer eye on where his money was going, he’s be fine now. And we wouldn’t be talking about or reading about his financial problems.
OK, so what can you do to prevent your life from being “Ed McMahoned”?
Well, here are a few simple things to start with:
1. Don’t spend more than you make
2. Don’t buy anything with credit cards unless you can pay them off in full at the end of the month
3. Build a solid retirement plan - so you don’t have to work at 85
4. Have enough disability insurance - so if you can’t work due to illness or injury, you’ll still get enough income to live
5. Keep a close eye on where your money is going
Those are 5 simple things that can make a world of difference for your finances and your life. And Ed could’ve done them, but for some reason he didn’t. But you can.
So, today when you take out that credit card to buy that iced mochacino, ask yourself “What would Ed McMahon do?” And then just do the opposite.
Being in the biz, as it is known in the wild west, you sometimes hear chatter. One such example was that Ed liked to live high on the hog. Spend spend spend. Well now the hog isn’t even available for Christmas ham.
I hear stories of other’s who make fortunes and spend fortunes and make fortunes and spend fortunes with no actual desire to sock it away. But usually you hear such things from the youth of the show-biz culture.
Who expected Ed, a guy who made millions of dollars for years and years, to be the MC Hammer of AARP. Don’t be too surprised if Ed starts ransacking the Publishers Clearinghouse mailroom