When the biggest rapper on the planet releases his first album in years, it’s an enormous event. When a rising star in the fashion industry debuts a long-awaited new clothing line, it’s huge. Kanye West is both of those people, producing critically acclaimed and chart-topping hits with every album he’s released, while his shoes sell for $16,000 on eBay (please note, we do not currently offer 30-year-term sneaker loans). Anticipation has been enormous, leading to Kanye selling out Madison Square Garden for a simultaneous album-listening party and fashion show. That’s why it was so surprising to see all of that anticipation overshadowed by the news that Kanye is currently $53 million in debt. That certainly raises some questions, so it’s time to see what financial lessons we can learn from “The College Dropout” himself, Kanye West.
1). There’s good debt and there’s bad debt.
Since you were old enough to understand money, one of the financial lessons you’ve been taught is that having money is good, having no money is bad, and being in debt might be a tragedy. But that’s not necessarily the case. You can use a loan to pay for an education, buy a home or open a business. All of those options are good debt because they can eventually make a profit for you. Bad debt is what you carry for living past your means, spending money you don’t have on things you don’t need. Kanye’s debt, according to Vanity Fair, is good debt, because it represents his efforts to enter the fashion industry, which has notoriously large entry costs. With his clothing line finally generating revenue, he’ll soon be out of debt, and he’ll have a very nice asset to show for it.
The mistake Kanye made was using his personal fortune to finance his dreams instead of finding outside investors. If he had, he could have structured his payments better and had the infrastructure to avoid problems. If you want to achieve your dreams, whether it’s buying a home, starting a business, or going back to school, start by talking to us. We have great advice and options when it comes to making your financial dreams come true. If you’re stuck with too much bad debt, we can help you there, too. Follow this link to find out how you can turn all of those high-interest credit card debts into a single low-interest home equity loan.
2). Find someone who believes in you, and then collaborate willingly, honestly, and often.
Kanye West began his music career as a producer working with Chicago acts. In “Spaceship,” he described the surreal experience of having strangers recognize him from MTV while he was working retail to make ends meet.
Once he met Jay-Z, all of that changed. The two became collaborators, helping each other develop independent voices that defined popular music for the last 15 years.
You need someone to believe in you. It helps if they have something you don’t – a unique perspective, a challenge, or the means to help you accomplish your dreams. We’d like to help with that. If you’re ready for the next stage of your life, we’ve got resources to help you get there.
3). Money can’t save your soul, but don’t be ashamed to spend it.
When Kanye achieved success as a rapper, his lyrics addressed the tension between personal fulfillment and the allure of wealth. In “Watch the Throne,” he explained wealth can be a force for happiness when we use it to be ourselves. Kanye’s lyrics celebrated how much freedom he felt by no longer trying to impress strangers.
What are you doing with your money? Are you spending money to keep up appearances? Have you ever made a financial decision based upon what your neighbors have? In “The Millionaire Next Door,” author Thomas Stanley demonstrated that the route to wealth is a job that pays well, owning your home and avoiding the trappings of wealth. So, figure out what you really want and make plans for financial security that include the things you want. Another one of the important financial lessons in life – don’t try to impress people who don’t really matter.
We can help you get there. Drop us a line at email@example.com, give us a call at (800) 531-8456, or follow us on Twitter for more financial lessons and great information. We promise that our Twitter feed is more coherent than Mr. West’s, which brings us to the final piece of financial advice we can learn from Kanye West. It’s one he needs to learn, too:
4). Sometimes you need someone to take your phone away.
Please Kanye, get off Twitter, take a nap and come back when you feel better.
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