Ryan Lochte Went From Millionaire To Almost Broke. The Lesson Is Clear: Save Money!

Ryan Lochte went from millionaire to almost broke. The lesson is clear: save money! The Olympic swimmer won his first gold medal in 2004, and finished his career with a total of 12 Olympic medals. He is one of the most decorated swimmers of all time, and was on top of the world.

But that success didn’t last forever. A scandal during the 2016 Olympics in Rio resulted in a 10 month suspension from swimming and a loss of his major sponsors. Two years after that, Lochte was suspended again by the US Anti-Doping Agency for receiving an intravenous vitamin B-12 infusion.

Lochte says he went from making “well over $1 million” a year to earning $75,000 from a single sponsor. He had to downsize from a 4,200 square-foot home to an 1,800 square-foot apartment. But Lochte was still spending beyond his means and was quickly headed into debt. He estimated he had about $20,000 in savings.

Lochte has learned his lesson, and now understands the importance of saving the money you make, no matter how much or how little. While Lochte’s example of profligate spending might be a little extreme, it is a fact that too many Americans spend too freely.

Not enough Americans make deliberate efforts to save money every month. It doesn’t matter if you are making good money if you are spending it all. Making $50k but saving $15k of it is better than making $80k but saving $5k of it. Saving is also important to give you a safety net if something unforeseen happens; an accident, a sickness, or a job loss.

Obviously, we live in a time where housing prices, and frankly, the prices of everything, are out of control. It’s not “simple” or “easy” to save enough for big purchases like a house, or a car, or your child’s education. These are real problems that the people in power need to address.

But what we all can do, is help ourselves in the ways that we can. Just make whatever situation you are in life a little easier by not spending on unnecessary things. I’m not going to lie and say that frugality alone will allow you to buy a house. But it may give you the breathing room you need to not be living paycheck to paycheck.

Investing is also critical. In a time of rising inflation under President Biden, simply putting all your money in your checking and savings account will result in your wealth being devalued. If you can diversify where your money is, you are on the right track. And it doesn’t have to be a lot of money. Just get started.

Once you get started and get into the habit of saving and investing money, it will come easier. You can set small goals for yourself. Save $200 a month. Do that for a while. Then raise that goal, to $500, $1000, and more. If you can do that consistently, you will be able to withstand the difficult, unforeseen moments in your life.

This is something that applies to people of all walks of life, incomes, and experiences. Ryan Lochte went from millionaire to almost broke. The lesson is clear: save money! You will be thankful you did in the future.