How Do Millionaires Go Broke?

I am posting portions of this AP article about Ed McMahon not to make fun of him or make light of the situation, but to continue to point out the fact that if you do not plan (me included) you will be broke.
His story is front page today, but it too will fade and the economy will turn around. The question is how will you act once it does? Will you get settled in and get used to how much “stuff” costs or will you continue to pursue getting out of debt and staying out of debt?
clipped from


Ed McMahon talks about possible home foreclosure

LOS ANGELES – Ed McMahon blames the possible foreclosure of his multimillion-dollar Beverly Hills house on a set of problems all too familiar to many Americans: a foundering economy, health problems and poor planning.
“If you spend more money than you make, you know what happens,” McMahon said Thursday night on CNN’s “Larry King Live.” “You know, a couple of divorces thrown in, a few things like that. And, you know, things happen.”
Asked why a millionaire couldn’t make house payments, Pamela McMahon said the couple had less money than people may think and suggested they could have done a better job managing their finances.
“We didn’t keep our eye on the ball. We made mistakes,” she said. “It’s embarrassing to say the least, and it’s sad, because you know, Ed’s worked his whole entire life.”
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