With career earnings that totaled $292 million, Shaquille O’Neal currently ranks as the third-highest-paid player in NBA history. We asked Shaq what financial advice he gives young NBA players who want to hang on to their fortunes.
Shaq stopped by Business Insider to talk about his collaboration with home security technology company Ring, to raise awareness about how homeowners can better protect their property this holiday season.
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Following is a transcript of the video:
I would simplify it for them. I would do what one of my friends did to me. I would take a $100 bill and rip it in half. And I’d say “$50, don’t even look at it. Don’t look at it.”
Now, this other $50 you can play with. Do whatever you want. But if you’re smart, you’ll rip this $50 up and you save that. And now this $25, do whatever you want. You want a house, 10,000 square feet? Do it. You want cars? Do it, but keep it right here.
If my son makes it to the NBA, that’s exactly what I’m gonna tell him. The NBA does a great job of, you know, preparing people and warning people, but you know, sometimes you just get so much money and you forget – like if you’ve got a five-year deal worth $100 million, you’re making $20 million, you spend like, $20 million in the first year, you’ll be like “You know what? I’ve got another $20 million coming.”
That’s how guys are thinking. I always tell them “Don’t think about what’s going on now. Think about what has to happen in the future.”
I never spent, like, an NBA check like my first four years. Then, when I got married and had kids, all that changes, but that’s, to simplify it for them because, you know, a lot of people don’t have the business mind or the business tact, so you have to break it down in their language.
So, I would say save 75%, and this 25%, do whatever you want to do with it. Take care of your family — boom, bam. House, apartment, car – but don’t ever do more than this.
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