NBA Millionaire Gone Broke?

If a former NBA superstar can start pulling out his dreadlocks as he faces foreclosures, just imagine how much panic that can subject average income earners like us who have families to feed.

Ex-NBA star Sprewell sells $1.5 million yacht, home could be foreclosed

MILWAUKEE -- Former NBA star Latrell Sprewell's home is up for foreclosure and his yacht sold at auction to help pay off the $1.3 million he owes on the boat, according to court filings.

Sprewell, who once turned down a three-year, $21 million contract extension saying, "I've got my family to feed," has apparently fallen on tough times.

RBS Citizens NA, or Citizens Bank, filed a foreclosure suit last week in Milwaukee County for the $405,000 home Sprewell bought in the Milwaukee suburb of River Hills in 1994.

In court documents, the bank said Sprewell owed $295,138 in outstanding payments plus interest.

I think it's important to learn at least two important lessons here, so we don't fall into the same trap. One, living beyond our means is never a good idea. I don't know how common sensical enough that is. Two, I guess out of so much money he was able to amass during his glory days, he never spent time to being financially literate; or maybe he has a financial planner that he just didn't pay attention to. A "Rich Dad, Poor Dad" book only costs less than $20.

Please take these two lessons to heart. It could be all that Latrell needed to have prevented him from being in this rut.

As they say, "It's not the money you earn, it's the money you keep." I'd rather be financially literate with little money, than be financially stupid with a winning lottery ticket.