'Only play the devil, gluttony and greed. They do not care. They would go for me, for the money. They do not care. I used it for the money 'In his canciónMoney, Michael Jackson portrayed those who had approached him for his money. They proved dangerous liaisons who left faces the king of pop.
Michael Jackson entered more than 12 million euros a year thanks to his songs. However, it is estimated that at the time of his death his debts exceeded $ 500 million. The artist made crucial mistakes in managing their finances, including trust people should not. Know the lessons that can be learned from the failures of the singer.
1. Trust the right people. In the late nineties, which had been the manager of Michael Jackson said the singer had become obsessed with buying possessions to feed his ego, "listening to the advice of impostors and sellers of smoke". Bad advice, although free, can be very expensive and the star was aware of it after taking his worst decisions, also in the judiciary, in the last years of his life.
2. Do not spend more than you earn. Any however much you have, can be ruined. The singer earned large sums of money. However, their earnings seemed directly linked to the level of expenditure. Wearing an eccentric lifestyle and accumulated huge bills in toys and antiques. Maintaining his mansion -Neverland- and amusement park located in it also represented a significant outlay for the artist. In 2005, an accountant testified that Jackson spent between 20 and 30 million dollars a year, far more than he earned.
3. Distinguish the asset liability; spending, investment. Do not forget that until the mortgage is liquidated, a house is passive, not active. Michael Jackson was about to lose his mansion in 2008 for failing to meet their quotas. Neverland was built in 1988 at a cost of nearly $ 28 million. Thanks to her I got a loan of 23 million, which became invaluable in 2007 when California authorities identified him as debtor 24.5 million, generated by mortgage interest.
4. Invest in what you know. Not all were errors in the financial decisions of Michael Jackson. One of his greatest successes was the purchase in 1985 of the rights of ATV, the company that owns the rights to more than 250 songs by The Beatles. He paid less than $ 50 million when the current value of the company amounts to two billion.
5. The bad financial decisions create a vicious circle which is difficult to escape. One of the biggest mistakes the singer was his addiction to credit. The lavish way of life led by singer and mismanagement of its assets made the singer had to borrow several times. Bank of America took advantage of the rights of the songs of The Beatles to grant Jackson $ 270 million. In 1995 he had to sell half of the rights of 95 million euros and pay off part of the debt owed to Bank of America. Debts and loans were in crescendo until, as mentioned at the beginning, end up accumulating at the time of his death more than 500 million of debt.
And not a financial education but how to face life; hackneyed something that is no less true: money does not make you happy. Happiness transcends money, so you better worry and leave it to good experts managing their capital. Mutual funds are an excellent choice for this. Invest in funds and enjoy ...
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