Former NBA star Kenny Anderson made a reported $63 million during his professional basketball career yet was forced to file for bankruptcy.
Anderson, the focus of "Mr. Chibbs," a feature length documentary, offered to share his hard-learned financial lessons with Newsmax TV.
“Value your money and educate yourself on investments and your future,” he told this week’s “The Income Generation Show.”
“Don't spend your money. Certain things I look back on I didn't need in my life. Right now I live with a need and not a want,” explained Anderson, who played point guard professionally from 1991 to 2006, mostly in the National Basketball Association.
“That's how I live now but I would think education is really important about money, about learning how to invest. What you put your money in and not so much how you spend it but just investing and understanding the value of money,” he said.
“When I was young I didn't get that. I was just playing basketball and trying to enjoy myself and trying to help the world,” said Anderson, who was selected by the New Jersey Nets with the second pick in the 1991 NBA draft.
And once Anderson started making an NBA star’s salary, he quickly realized that Uncle Sam takes a huge chunk in taxes.
He was able to fulfill some personal goals before money became overpowering. In 2005, despite earning $63 million during his NBA career, Anderson filed for bankruptcy
“Coming from nothing – you know my first goal and my first dream was to buy my mother a house and I was able to do that,” he said.
“The more money you make, the more money you spend because you don't know how to value money. Coming from a dysfunctional home, my mother did the best with what she had — educationally wise, financially, but she didn't understand,” he said.
“And like I always say sometimes your family can be your worst enemy. I would never say no to my mother, but my mother was one of the reasons she spent a lot of my money and I wouldn’t say no to her,” he said.
Anderson confessed he had trusted professional advisers during his career, who did offer sound advice. “I didn’t listen to them when they told me what I should do with my money early in my career but I just lived. That's what a lot of athletes are — really hard-headed. You don't trust anyone. So they're like 'no, it's my money. I'm going to do this.' And what are they going to say? They let you destroy yourself,” he said.
“I think when you get a lot of money then you become powerful. So some of your friends and some of the people that deal with you don't know how to treat you. So they want to be 'yes' men so you could take care of them. Then you're dealing with demons,” he said.
“You're dealing with demons also. I know I hid mine through fame and money. I held it in for 30 something years and it finally came out,” he said.
“A lot of athletes, they're hiding behind their money so they're dealing with other demons.”
"The Income Generation" airs on Newsmax TV every Sunday at 10 am ET.