When billionaire John Kluge and his wife Patricia divorced in 1990, she received about a $1 billion settlement. Twenty one years later, her luxury estate and vineyard have been sold off after foreclosure. What happened? According the Wall Street Journal and Washington Post articles, it was a combination of the bad economy, bad business decisions, and most importantly, debt.
This is really sad and I feel bad for Ms Kluge but there is a lesson we can all learn. It does not matter how much money you have, if your spending exceeds your income, you are headed for trouble. We all have to live within our budget.
If you would like to learn more about creating a budget and using a spending plan, stay tuned. I am writing an e-book on the topic and it will be available within the next couple of months.