Sep 6, 2024
Shaquille O’Neal, the legendary NBA player, found himself deeply offended during a transaction that was meant to be a heartwarming moment for his family.
During an appearance on the “Earn Your Leisure” podcast in July 2021, the basketball hall of famer described how a real estate agent asked to run a credit check on him while he was trying to buy his mother a house in 2019.
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“I was, like, ‘I beg your pardon?’” he recalled. “My mom was, like, ‘Baby, don't do that,’ and I was, like, ‘Hold on mama, she disrespected me.’”
Shaq, who earned $292 million in player contracts alone and continued to grace TV screens as a host on “Inside the NBA” since retiring from the league in 2011, is also known as a solid business investor. He wrapped up the story by saying he confidently asserted to the agent he was more than capable of effortlessly purchasing the home, and demanded a 10-day closing period.
Here’s how Shaq set himself up like a baller with immense financial resources.
Savvy business investments
When it comes to saving money, Shaq is just as much of an overachiever as he is on the basketball court. He once recounted to CNBC the best financial advice he’d ever received.
“It’s not about how much you make, it’s about how much you keep,” Shaq said. “Save 75% of your earnings and put it away. Use the other 25% as you please.”
That’s way easier said than done, especially for those of us who don’t earn as much as Shaq. By comparison, the U.S. personal savings rate was just 2.9% as of July, according to the Bureau of Economic Analysis.
Much of Shaq’s savings seem to have been deployed in business ventures and investments over the years. He operates a huge portfolio of restaurant franchises, including outlets of Papa John’s, Auntie Anne’s and Krispy Kreme. He was also an early investor in Google, before it went public, and acquired a stake in Ring before it was bought by Amazon.
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“I heard Jeff Bezos say one time [that] he makes his investments based on if it’s going to change people’s lives,” O’Neal told The Wall Street Journal in July 2019. “Once I started doing that strategy, I think I probably quadrupled what I’m worth.”
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Early lesson and motivation
Shaq wasn’t always great with money. In an interview with Business Insider in November 2017, he recounted how just days after receiving a $1 million paycheck at age 20 he found himself $50,000-$60,000 in the hole after spending the money on luxury cars for himself and his parents, as well as jewelry. It wasn't until he was alerted by a bank manager about his debt that he decided to be more careful with his finances and hire a business manager.
Motivation can be an important part of any wealth-building strategy. Shaq admits the driving force behind his playing career and money moves was to provide for his family.
“I never wanted to be rich,” he said during the live “Earn Your Leisure” podcast. “I just wanted to be able to buy my mother anything she wants.”
A study published last year in the journal “American Psychologist” found that people who successfully aligned their savings goals with their personality were more likely to save money. For instance, agreeable people would be better motivated when they consider saving money as a way to provide for their loved ones, while conscientious people were more likely to be motivated by securing a comfortable retirement for themselves.
Simply put, it’s important to understand your personality and motivate yourself to save money based on what’s most important to you.
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Vishesh Raisinghani is a financial journalist covering personal finance, investing and the global economy. He's also the founder of Sharpe Ascension Inc., a content marketing agency focused on investment firms. His work has appeared in Moneywise, Yahoo Finance!, Motley Fool, Seeking Alpha, Mergers & Acquisitions Magazine and Piggybank.
