Picture this. You’re a young kid from the block, grew up facing some hardships along the way, but you’ve got mad talent you could shoot three-pointers in your sleep.
Soon enough scouters take notice, and you’re on your way to the NBA. You make more than just an impression, and cash starts streaming in. You’d be sucked into extravagance, wouldn’t you?
$1 Million in 1 Hour
This was Shaquille O’Neal’s story. The young lad was quite the talent, and an hour after turning pro and signing a contract, he had already spent $1 million. At 20 and having his fortunes suddenly change, we can’t really blame him.
He did spend some of that cash for some good though, paying off his mama’s house for example. But then again he also bought a $150,000 Merc for himself and another one for his dad. Actually, dear mama also got a car too J
Now that he’s older and wiser, Shaq admits that he wasn’t always that good at managing his finances. He managed to transform himself into the young spendthrift he had become and into a successful entrepreneur known for his smart moves.
The former athlete was among Google’s earliest investors; little did he know that the company would grow to conquer the tech world. He also invested in Apple, and the firm has been named the most valuable company in the world time and time again. Unquestionably, the man’s investments more than paid off.
What’s more, Shaq didn’t just pour his money into the tech industry. The man is also in the food business owning a couple of restaurants, Auntie Anne’s, and Krispy Kremes. And as if that’s not enough, O’Neal also owns several car washes and gyms. That’s quite an empire he’s built for himself, his 20-year-old self would be surprised.
Enviable Saving Habits
How did he manage all that? His saving habits. And it’s all thanks to an unnamed mentor. While at an interview, the retired pro spoke of a gentleman who gave him the best piece of advice. Taking a piece of paper to represent a $100 bill, the man tore it in half, telling Shaq that smart people invested one half and kept the other.
However, the gentleman continued, the wealthy take one of either halves, cut it into two, then save that new half along with the initial $50. Smart, no? And from that moment on, Shaquille O’Neal stuck by those words, never to depart from them.
To put it into context, Shaq saves/invests 75% of all his income, using just 25% of what he earns to finance his daily life. This 25%, he says, is for whatever he wants; jewelry, cars, all sorts of fun, so long as he never touches his savings.
He’s also preaching the same to all young kids coming into heaps of cash to do the same, insisting that these huge paychecks won’t always be around. He’s especially directing these words to the new NBA draftees, seeing as their lives are just about to change significantly. He doesn’t want to see them make the same mistakes he did.