Re: Your Music Your Money

[Cool Water]

I was sent an email a few weeks ago about Dougie Fresh having one of his homes in fore closer. The news is out on several artist whose homes have went into fore closer. The question i asked is why are artist, who have made millions of dollars going broke and filing bankruptcy and having their homes placed into fore closer?


Chili from the group TLC was shown on the news as having a home in fore closer along with, Evander Holyfield,Dougie Fresh, Scott Storch, and many other artisin the entertainment industry. So, the question remains how can one man or women make millions of dollars, and can't even keep the mortgage paid on a measly house. In my personal opinion, I think it stems from the fact that most people are not taught how to handle money, or invest their earnings properly. If you earn one millions dollars a year then you can probably afford a home in the five hundred to seven hundred thousand price range. Proper planning financially should allow you to pay that house off in three to five years providing you don't have the money in escrow to pay it off with cash. Many of are entertainer are to busy flossing to really acquire real wealth, their net worth is very low compared to the amount of money they are making. Assests are acquired liabilities are bought things like cars, clothes, and jewerly seem to be the stigma for most individuals with money in the entertainment industry. They truely don't own anything not even the clothes on their backs.

So, we ask the question now what is the soultion to the problem, I think its starts with the proper education, in the book "Rich Dad Poor Dad" the author clearly explains how one must become an investor to grow your wealth and buy assets not liabilities. Proper estate planning is second on the list of how one should keep wealth for generations . Taxes will eat up your income so its important to have a business name to protect your assets from the IRS when paying tax seasons roles around. Buying assets like Gold,Silver, Oil, land, and some fine art is important in the wealth creation process when you start to earn a million dollars or more. Finally, I think that saving twenty percent of your income also helps you with growing your wealth to fight inflation for future economic problems. It is really a shame to watch are so called millionaires entertainers get money to only lose it because of a lack of education on how to keep it.

I am in no way a financial planner or adviser this is just my personal opinion of what I think....

Cool Water
Rapper/entrepreneur, Artificially Flavored Records

www.coolwater101.com

www.getfreegetmoney.blogspot.com