Tag Archives: Superbowl

Credit Cards the silent wealth sucker

Credit Card, Master Card, Visa Card

The world is in love with credit cards. – Warren Buffet

I’ve heard it so many times before.

Your favorite sports team is coming to town. You have wanted to go see them play live for years, but you don’t want the nosebleed seats. You want to be close to where the action is.

Tunnel Celtics GIF by NBA - Find & Share on GIPHY

So close that you can almost touch your favorite player and shake their hands or pat them on the back while their names are announced as they come out of the tunnel.

Lebron James Running GIF by NBA - Find & Share on GIPHY

This year you have decided to treat yourself and will go see your team play.

However, tickets aren’t cheap.

After reviewing information on ESPN.com, you will see that watching James Harden dunk on LeBron James comes at a hefty price.

Lebron James Running GIF by NBA - Find & Share on GIPHY

The average ticket in the NBA now costs $51.02, according to the Team Marketing Report, which monitors the business of sports leagues. Add charges for food, drinks and parking, and that cost rises to $72.53 per person.

And if you want to sit front row, the range for a courtside seat in the NBA is generally anywhere from $300-$20,000 just from a quick price check on Ticketmaster.

See my post How buying Super Bowl tickets could cost you $2 million dollars

Since almost everything in America costs more than the federal minimum wage of $7.25 that millions of low-wage workers are earning; Americans are turning to plastic to fund clothing, doctor fees, college, medical bills, furniture, cars, excursions, and jewelry. You name it, then folks are dropping down their American Express to make a purchase faster than The Rock can put out another film!

The problem with that is pretty obvious. You don’t have the money to go to the game so you put it on plastic instead. This can have serious consequences down the line. If you are unable to pay off the balance, now you have to pay interest on this purchase.

With the average credit card interest rate hovering around 18 percent, you could end up paying double or triple the cost of this little excursion to go see the LA Lakers play at Staples Center over the next several years!

In the book American Plastic, the author stated she saw consumers going into debt to pay for cosmetic surgery, which could cost you $7,000 for one procedure. Putting many Americans further behind in their wealth building.

The book Credit Card Nation by economist Robert D. Manning, published in 2000, provides a comprehensive overview of a social and economic crisis going on in America-escalating dependence on credit. The deregulation of financial services in 1980 paved the wave for Americans to become dependent on credit cards.

According to CNBC and USA Today, the average credit card debt in Americans held is approximately $6,200. And Alaska topped the 50 United States with the most credit card debt at $8,026. This is also the state that gives all its residents annual checks from its rich oil supply. Just something to chew on right there.

Meanwhile, the average credit card debt is now becoming a major wealth killer. Those households with it and more likely to have lower 401(k) balances, less in savings and investments, and less home equity.

Billionaire investor Warren Buffet says you should avoid using credit cards like a piggybank; it doesn’t work because a piggybank is filled with cash and credit cards are not cash. Credit cards funnel all your cash that should be used for wealth building into the banks coffers. Banks are now making a billion dollars a month thanks to easy credit access!

The credit card love affair usually ends in trail of past due bills.

Game, Game Over, End, Hand

Once the minimum payment (usually a paltry one percent of the balance) becomes unmanageable, you can get into serious trouble. Instead of making minimum payments are paying interest, you should be earning it instead in Mr. Market.

The one percent you are paying could be going to your retirement accounts or toward the down-payment of a home. How important is once percent really? It is enough that if you subtract that amount from the expense ratio of a mutual fund, then that one percent difference can be enough to fund 10 years of retirement. Very important in my book.

Forget credit card debt. Go max out that 401(k) at $19,500 annually and/or a Roth IRA at $6,000 per year and $7,000 if you are 50 and over.

This will of course take discipline, but so what. If you are willing to fork over $10,000 for season tickets to see the San Francisco 49’s play, why can’t you put away $100 a month for your future?

Maxing out a 401(k) over 20 years with a 9 percent return would net you 1,087,408.34. Don’t let credit card debt take this away.

Just my 2 cents.

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

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.