The Seven Laws of Gold: Protecting Your Treasure
Mega star Nicolas Cage is on the verge of bankruptcy. According to the Associated Press, he owes the IRS $6.3 million in back taxes from 2007. Additionally, he has a lien on his real estate holdings and is being sued by East West Bank for $2 million that he borrowed and hasn't paid back.
Nicolas Cage is one of the highest paid actor's in Hollywood and has purchased a significant amount of real estate in California, Nevada, Louisiana and Rhode Island, as well as in Europe which included his 11th century German castle called Schloss Neidstein. He has recently sold his castle and much of his property, most likely in an attempt to pay his IRS debt.
How does this happen to someone who has made over $40 million in the last year? He says it was the fault of his manager and financial advisors not taking care of his finances properly and is suing him for $20 million in damages. However, his manager states that it was Cage's excessive spending which includes but is not limited to $276,000 on a 67-million-year-old dinosaur skull, 15 palatial homes, yachts and several Rolls Royces.
"Levin repeatedly warned Coppola that he was living beyond his means, urged him to spend less, and warned him that financial disaster loomed if he continued to spend uncontrollably," Levin's filing said. Levin is also counter-suing for unpaid tax preparation of $167,000.
Although Cage has earned millions of dollars and has an entourage of managers and financial advisors helping him manage his cash flow and assets, the same rules apply for money management, and we can learn something from it.
I read a book when I was teenager that I consider required reading for everyone who has any money, whether you work or come into an inheritance, the same rules still apply. Maybe Nicolas Cage could have saved himself from financial doom if he took the time to learn some basic financial sense.
The Richest Man in Babylon is a series of financial parables. The setting is in ancient Babylon with a young man who used basic financial laws called the Seven Laws of Gold to accumulate a great deal of wealth. Here are some highlights of those financial laws.
Seven Laws of Gold
1) Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family- One-tenth of everything that comes into your hands should be put away in a savings. It could be a savings account or a piggy bank in your closet, it doesn't matter as long as one-tenth of everything you earn goes into savings. This is a goal everyone should have.Continued on the next page