One of the things that Michael Jackson was criticized for during life was his spending habits. He could easily run through hundreds of thousands of dollars per month in the kind of spending that could only be matched by a King. The struggle for Jackson was that this spending was catching up with him: He had to perform into old age in order to make enough money to repay his debts and to manage his expensive lifestyle.
Now that Michael has passed, his estate is finally in the black, obviously because he’s not around to keep lavishly spending it. According to the New York Daily News, Jackson’s estate has $18 million in cash after pulling in a whopping $600 million in revenue. According to court documents, Jackson’s children, Paris and Blanket, will be able to receive $8 million per year each, thanks to their father’s hard work.
According to court records, the family spent $3 million for the childrens’ educations, $250,000 for a single trip, $15,000 in pocket money, $600,000 in security and another $28,500 in monthly rent.
Here are some lessons we can learn from Michael Jackson’s life that your family should know…even if your last name isn’t Jackson.
1) What you do financially will impact your children, both good and bad. On the good side, Michael created a brand and some financial assets that would accrue massive amounts of wealth long after he died. On the bad side, he had to die and stop spending before his family could enjoy it. What are you spending the bulk of your money on? Is is on material things that lose value or on sound investments and other things that retain or increase in value.
2) No matter how much money you have, if you outspend your income, you’re going to be under severe financial pressure. Michael’s debts were overwhelming before he died, and that was a tragedy. Had he lived, he could have easily ended up like an old prize fighter who takes on dangerous boxing matches in order to repay the IRS. It would have been sad to watch.
3) Creating other financial strategies and building your assets means you’ll be making money without working for all of it. Michael built the kind of empire that can finance his family for generations by putting his talent to good use and making reasonably good financial decisions. While most of us can’t sing like Michael, we do have the ability to build businesses, buy real estate, and become invested in other financial assets that can make money for us long after we can’t work anymore. Money is not something you’re supposed to break your back to obtain. There should be a point where your money is working for you.