Category Archives: Celebrities and Money

Celebrities and Money, Financial Freedom, Self-Made Millionaires

How Beyoncé and Jay-Z became a $1 billion couple

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I don’t like to gamble, but if there’s one thing I’m willing to bet on, it’s myself. – Beyoncé

Hip-hop is more about attaining wealth. People respect success. They respect big. They don’t even have to like your music. If you’re big enough, people are drawn to you. – Jay-Z

The 2018 Grammy’s have come and gone. And even though Jay-Z went away empty-handed on January 28th, he is far from empty-pocketed.

Forbes listed his net worth as $810 million and Beyoncé with her own at $350 million net worth.

That’s right. Beyoncé and Jay-Z are a billion-dollar couple.

Through not only music and touring, but lucrative business dealings have made them a fortune.

Here is where it all began.

Jay-Z builds an empire

“By the time I got to record my first album, I was 26, I didn’t need pen or paper – my memory had been trained just to listen to a song, think of the words, and lay them to tape.” – Jay-Z

Back in 1996, a rising rap star named Jay-Z, who was known for memorizing lots of rhymes without writing them down, put out the album Reasonable Doubt.

It all began when Jay-Z and two others started their own record label, Roc-A-Fella Records, when the talented artist was unable to get a record deal.

It eventually went platinum. From there he would go on to record the commercially successful and critically acclaimed album Hard Knock Life in 1998.

He has not slowed down since.

Jay-Z was a business owner and rapper as he rapped for the very label he owned.

And he would eventually go on and sell the label to Def Jam.

He became a record exec who helped launch the careers of Kanye West and Rihanna. And eventually served as CEO of Def Jam Records in 2004 (a job he took to assume control of his earlier master recordings with the label).

Jay-Z signs another huge deal with Live Nation for $200 million in 2017, his second big payday with the concert promoter. The first 10-year deal was for $150 million in 2008. Through this deal he makes millions in merchandising and concert revenue.

His interests outside of music (Rocawear, and stakes in 40/40 Club and the New Jersey Nets as a sports team owner) have netted him millions more. He sold Rocawear for a reported $204 million. It was said the deal in 2007, would net him around $35 million in cash. This cash infusion would be the seed money used to fund his other business ventures.

He has sold more than 28 million albums in his 15 plus-year solo career.

He has done numerous solo tours including going out on the road in 2013 to support one of his most recent albums, Magna Carta…Holy Grail.

He purchased the streaming service Tidal for $56 million back in 2015. It is now said to be worth $600 million.

He has used his ownership of Roc-A-Fella Records and Rocawear clothing brands to build what he has today.  In 2018, he is one of the richest musicians in the world.

Beyoncé builds her own empire

“Do what you were born to do. You just have to trust yourself.” – Beyoncé Knowles

Beyoncé decided at the tender young age of five that she wanted to be a performer after going to a Michael Jackson concert.

She sang in the choir at church, at school, and everywhere. She honed her craft. Practice, practice, practice.

After appearing on star search in 1993, and later landing a record deal with her singing group in 1997 with Columbia Records, from there she would rise to fame in the late 1990s with the R&B girl group Destiny’s Child.

As a member of Destiny’s Child, she has sold 17 million albums. The group went on to sell more than 60 million albums worldwide. Their 1999 album ‘The Writings On The Wall’ sold over 15 million copies worldwide and was one of the top selling albums of 2000.

The release of her debut album Dangerously in Love, in 2003, turned her into a solo artist. From there she would go on to do films such as “Pink Panther” and Academy Award winner “Dreamgirls.”

Her 2007 tour, ‘The Beyoncé Experience’ grossed over $24 million following the release of her 2006 record B’Day, her 2nd studio album which spawned numerous hits and videos. She then followed up this tour with an even bigger one in 2009, ‘I Am… World Tour’ which grossed $119.5 million. 

She set a new record when she earned 6 Grammys in 2010 for ‘I Am… Sasha Fierce. Her 2009 single from the Sasha Fierce album ‘Single Ladies (Put a ring on it)’ was a huge success and in constant rotation on radio stations worldwide.

She has performed for presidents and as the headliner for the super bowl half-time show in 2013.

She also has multi-million dollar endorsement deals with L’Oreal, Coty (the perfume company) H&M and Target. She has also released at least three fragrances which has made $400 million in sales.

In 2012, Beyoncé inked a deal with Pepsi for a reported $50 million dollars.  

BEYONCE became the fastest-selling album in iTunes history and solidified her as one of the most powerful women in music.

She released her own documentary in 2013 ‘Life Is But A Dream,’ which she directed and produced. It was a rare inside peek behind the curtain of her personal life.

The 2016 release of Lemonade exclusively on Tidal debuted at No. 1, and became her sixth album. She is the first ever female artist to have every one of her solo albums debut at No 1.

As a solo artist, she has sold 16 million records in the U.S. alone and 100 million worldwide.

Beyoncé enjoys making video diaries with the help of her favorite item to do so which is a MacBook.

Beyoncé is a singer, dancer, songwriter, and entrepreneur who continues to tour worldwide while making money from concerts, merchandise, and albums.

Jay-Z and Beyoncé empire as a power couple

“Those who are successful overcome their fears and take action. Those who aren’t submit to their fears and live with regrets.” – Jay-Z

“And we have to teach our girls that they can reach as high as humanly possible.” –Beyoncé

They both own equity in Tidal, which is worth $600 million. That is more than 10 times what Jay-Z paid for it.

In addition, together they both own over $100 million in Real Estate holdings.

Headlining tours independently and together for the 2014 joint On The Run Tour with Beyoncé,  has netted them millions more. This tour earned well over 9 figures with a staggering over $100 million in ticket sales. Making them one of the most profitable touring and recording artists today.

Jay-Z and Beyoncé amassed their fortune from hard work, savvy business acumen, and ownership. Simply put, they own what they do.

All this combined has made them into the billion-dollar couple you see today.

Basically, to build wealth, you have to own. Whether it is a business, stocks, or real estate the money comes from owning.

Side note: Jay-Z is a 21-time Grammy winner and Beyoncé is a 22-time winner. Just in case you were wondering.

Celebrities and Money, Financial Freedom

Money Basics: The Rule of One

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“There is brilliance in simplicity.” – Bruce Lee

Do not listen to those who say live for today or have to treat yourself or have fun. Those are the same people in debt up to their eyeballs.

Avoid debt, especially credit card debt, at all costs. The money paid to these institutions lines their pockets while you go broke.

Case in point, LL Cool J, the famous rapper, entrepreneur, and actor had some telling advice as he was quoted as saying that “I lease a Honda Accord for $399 a month while other rappers are going broke”.

Therefore, buy a smaller house, car, and wardrobe. The money you save can go in the bank. You can earn interest instead of paying it when you don’t spend.

I recently read that Americans are in over a trillion dollars in each category of auto, student loans and credit card debt.  An all-time high! I bet.

Considering that everyone or system of some kind seems to be in cahoots to separate you from your hard earned money; it is no wonder that the savings rate in America is so abysmal.

For example, you need a college degree to get a good job, i.e., one with good benefits like health care and a retirement plan as many low-paying positions offer none.

You now have to sell a kidney to afford the ever increasing cost of college. So what do you do instead? You finance it.

If you are one of the lucky ones, as only 33 percent of adults hold a college degree meaning 67 percent may be struggling to find decent work and wages. In contrast, in 1940, a mere 4.6 percent had a four-year college degree.

Don’t get me wrong. There are many out there without a degree that are doing well but, they in many times are the exception and not the rule.

Then you go out there and get a job now that you have the coveted golden ticket… err uh I mean a college degree. Jobs nowadays pay peanuts so you have to finance a wardrobe, car, home, and furniture.

And dating? Forget about it. That costs money. If you go out for more than coffee, you have to finance it.  That’s right, you charge it on the plastic because that’s the only money you have and thing you own that the finance company won’t repo.

If we could ask how the finance companies feel about customers no longer wanting access to their credit lines, in my opinion, I suspect a humdrum response. A customer wants to return their credit card as they no longer can afford to continue payments.

For example, the exchange may go something like this.

Question: Do we turn the card over to you as we no longer want it?

Answer: You can keep the card, but we want back all the things that clothe, transport, and shelter you.

When you can no longer afford your automobile. Your car can be repossessed by the bank.

When you can no longer afford your mortgage. The bank forecloses on your home.

It may take time for the finance company to pick up its property, but it will happen if you can’t pay.

Maslow’s hierarchy of needs says you really need the basics first and foremost which is food, clothing, and shelter. After that, you must make the slow ascension up to the top of the needs hierarchy pyramid; culminating in self-actualization: one’s full potential.

So let’s recap.

You do and have the following: Go to college. Finance it. Get a job. Finance a car to get to work. Get a mortgage to finance a home or rent an apartment to have a roof over your head. Buy a wardrobe because you need professional clothes as the t-shirts and hoodies no longer work. Stagnating wages. Tons of debt. Pay your bills. No money left for saving and investing to get out of the hole. Rinse and repeat.

The only way to get out of the proverbial rat race is to buck the trend.

Start at a community or low cost local college. Live like a broke college student until your debt is repaid. Then put into practice living like a real adult. College is all about theories, but being an adult is about practical application.

This is where the rule of one will serve you well.

One house, one car, one nice piece of jewelry.

The problem is that many people let their lives become too complex. Simplify it.

One bank, one credit card, one motorcycle, etc. etc.

Keeping it simple with this rule can save you hundreds of thousands of dollars over a lifetime. That is money that can be invested or spent doing other things like starting a business or traveling to see family.

I know you may have learned a lot from the post above and it may take some time to sink in.

So let’s keep it simple. Just do one rule at a time.