How to deal with money (with minimal effort)
Shaquille O’neal is one of the GOAT’s in the basketball world. Where athletes go bust after they retire due to poor money management. Shaq has made amazing investments that have been giving returns left right and centre. Some of the companies he has invested in are:
- Burger Joints
- Car Washes
- Restaurants
- Fitness centres
- shopping centres
- Movie theatres
The Question is, how is he excelling where a lot of his predecessors and successors have failed to retain money post retirement.
According to Shaq, the Formula is:
Break your investment into 3 pieces. Whatever you earn in per month cut that in half, one half you keep it aside, invest it for the long term, save it for the rainy day. the other half divide into 2 pieces again. The first 25%, put it into investments with a 5-10 year horizon for any major events in your life; marriage, kids, vacation trip etc.
With this you are left with the final 25%, this 25% is your ‘Play Money’, do whatever you want with this in the present. Pay rent, Eat out, buy cars, buy bikes or have fun. This 25% is what you live off of.
This will help create wealth in the long term.
How do you take care of your money situation?
~P
