Notorious B.I.G. on protecting your financial assets

Living every day like a hustle, and other life lessons

By Courtney Jordan

I don’t know if we can agree that more money would mean more problems, but it certainly means different problems. Sure, it’s tough to imagine having the kind of cash to shell out for Bentleys when Amtrak seems like a splurge, but should you find yourself with a windfall of wealth, Biggie has left us with some sage advice on dealing with issues that only come from being part of the 1%.

Higher Taxes

“I don’t know what they want from me, it’s like the more money we come across the more problems we see”

They want your fair share, Christopher. According to Pew Research, income taxes paid by Americans who make over $250k a year constitute about half of annual income taxes collected by the IRS, though they file less than 3% of the returns. It has been reported in recent years that the top 1% pay an average of 27% of their income to taxes. The is a hotbed for political argument that we’re not jumping into, but your tax bracket certainly changes with income.

Money Managers

“Never keep no weight on you.”

What Biggie means here is that when you make it to the big leagues, you can’t be worried about liability. You need other people to handle the day-to-day for you. The more money you have, the more people you have to employ to count it. Wealth managers and investment advisors help high-income individuals decide how best to invest their funds to multiply their money. These experts typically run on commission and their base salaries don’t come cheap.

Credit Increases

“That goddamn credit? Dead it.”

He’s talking about that low-fat liquid diet. While debt-to-cash ratio may seem like your biggest issue when you’re broke, this often doesn’t change for people with drastic revenue increases. As wallets grow, so do spending limits, causing many people to run up credit ratios just as high as before. When faced with a sizable salary increase, many trade in their condos for Cribs, with mortgage payments they can’t sustain. Using your new money to pay off debt, rather than make new purchases, is your best bet for financial success. You know you don’t wanna ride the bus like this.

Lifestyle Changes

“Birthdays was the worst days, now we sip champagne when we thirsty.”

But maybe stick to LaCroix. When you think of the super wealthy, you might think of swimming pool grottoes and suicide doors, but the most intelligent rich people keep spending habits well below their means. For example, despite his billions, Warren Buffet still resides in the Omaha home he purchased for around $32k in the 1950s. What we’re saying is, if you sip a diuretic to fight the summer heat, you’ll likely find you’re still thirsty 30 minutes later.

Relationship Strains

“Keep your family and business completely separated.”

Blessid Union of Souls was probably a little too secure in that relationship because in most cases she really will care that you hang with Leonardo. Should’ve called Biggie and he would have woven a tale of his relationship woes. When you’re ultra rich it may become difficult to know who likes you for you and who’s trying to edge into your living will. Creating a clear separation between your family and your finances ensures the longevity of health in both departments.

Financial Responsibilities to Others

“Never let no one know how much dough you hold.”

If you’re running a public corporation, we do not condone withholding your earnings information from investors (#GAAP), but as a private citizen (or even if you’re running a privately owned company) keeping your financials under wraps can protect you from financial predators and allow you to make investments based on your passions and interests without the hard sell. Take a lesson from Kim K., and keep it secret, keep it safe.

Invest In Your Own Wealth

“Take a better stand. Put money in my mom’s hand. Get my daughter this college plan, so she don’t need no man.”

Here’s the proof of his success: not only is Biggie looking to pay substantial dividends to his original investors, but he’s actively developing a plan to ensure the security of his fortune by selecting future board members. By investing in his daughter’s education, the family can maintain controlling share of the business without assistance from The Man.

So if you don’t know, now you know.