If you’re looking to get some free financial advice, it pays to listen to someone who has money… and learned how to not squander it. Talking with Yahoo Finance’s “On The Move,”Shaquille O’Neal talked about his money, saving it, building wealth, and learning to not throw it all away.
His first revelation: the difference between being “rich” and “wealthy.” To make the point easy to understand, he took a piece of paper and pretended it was a $100 bill. From there he said, a “rich” person will save half of it and use the other half as “do whatever you want with it” money. A “wealthy” person will save that half, and then save another fourth…using that last 25% as their spending cash. That’s advice he got from the most reliable source of all…”a guy in a bar.”
Then, there’s his own experience. When he signed his first big trading card endorsement deal, he went on a spending binge – buying cars for him and his family, bling, and was suddenly in the hole by $50K. That’s when a bank manager called him and gave him advice about not ending up broke after thinking it’s all never going to end… so he got a business manager. From that point, he never “touched his first check” from the NBA until he got married and had kids. Though he still admits to having a soft spot for cars (and even bought a Rolls Royce Cullinan truck that’s he’s only driven once).
His last bit of investing advice is simple – invest in the future and for the future. Stay away from anything that promises to “get rich quick” because it rarely works out that way.