From Yahoo Finance: 2025-06-10 09:17:00

Cam Newton, former NFL MVP, disclosed in a YouTube video that despite earning $20 million a year at his peak, he now creates online content to make ends meet. This highlights the common struggle athletes face post-retirement in managing expenses.

Newton emphasizes the importance of scaling back spending when income decreases to avoid financial ruin. He managed his money well during his active career, estimating annual expenses at $5-6 million after taxes.

Many wealthy athletes fail to adjust their spending when their income drops, leading to financial troubles. Newton stresses the need to recognize that income is temporary, while lifestyle expenses are permanent.

Lifestyle inflation is a major issue, with high-income families living paycheck to paycheck. A significant portion of Americans have no emergency savings and rely on credit card debt for expenses.

Newton advises avoiding lifestyle inflation by keeping expenses low. He suggests making smart money decisions to secure financial stability for the long term.

To live within your means, consider buying a house within budget and using cash instead of credit cards. Avoid going into debt for discretionary spending to maintain financial security.

Adjusting your lifestyle to avoid unnecessary expenses can prepare you for unexpected income shocks. Follow Newton’s advice and make wise financial decisions to secure your future.



Read more at Yahoo Finance: Cam Newton says athletes go broke because they keep living lavishly long after their million-dollar checks end