Basketball hall of fame Shaq is the only person to admit that when he remembers his earlier life to manage money, “he has done a lot of things wrong.” So he shares his techniques among young people so they don’t end up like him.
According to him, at the age of 20, he blew $1 million in an hour. This is a shocking thing to know as it takes a lot of time to make such amount of money. And losing in just 60 minutes can be a rough day.
“I went through a lot of trials and tribulation. A lot of failures,” the retired NBA star says CNBC’s Bob Pisani at BITG’s Charity Day. But now Shaq has made a name as a successful businessman & investor.
Today if he wants to share his money secrets he would sum up it into a similar brilliant analogy: “Alright children,” he told after asking the interviewer a piece of paper. “This is $100, what you want to do is, you want to rip the $100 in two half.”
Then he continued, don’t touch one half better save it somewhere safe so that you can even look at it. “Now, the smart people, the billionaires of the world, they’ll take half $50 and put all that away.”
And remaining quarter is the fun money that can be used to buy a car, a house that main purpose is to have fun.
In brief, he believes 75% of the earning should be used for saving & investing and reaming is for retirement or long-term plans. He reveals he learn the idea from a guy and is working efficiently for him until today.