During the 20-year span of his career, Mike Tyson’s income exceeded $400 million. Yet, in 2004, before his 39th birthday, this amazing moneymaker was $38 million in debt….

The faster money came in, the faster it went out. Stories about his profligacy are already legendary. Tyson employed as many as 200 people, including bodyguards, chauffeurs, chefs, and gardeners.

He spent:

• Nearly $4.5 million on cars and motorcycles
• $3.4 million on clothes and jewelry
• $7.8 million on "personal expenses"
• $140,000 on two white Bengal tigers and $125,000 a year for their trainer
• $2 million on a bathtub for his first wife, actress Robin Givens
• $410,000 on a birthday party
• $230,000 on cellphones and pagers during a three-year period from 1995 to 1997.

The purpose of this is not to shake a finger at Mike Tyson but to alert you to the dangerous temptation to spend more when you make more. As someone who grew up drinking powdered milk and wearing hand-me-downs, I understand the strength of that temptation.

[Ed. Note: The above was excerpted from Michael Masterson's New York Times best-seller Automatic Wealth for Grads... and Anyone Else Just Starting Out.

If you know a young person who's going to graduate this year... or if one of your 2008 goals is to increase your income... pick up a copy. Learn more about this and all of Michael's books at his website.]

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This entry was posted on Friday, April 11th, 2008 at 5:10 am and is filed under Wealth Building, Wealthy .