Jay-Z on Money, Cash, & Wealth
Why Financial Freedom Is A Consistent Theme on His 4:44 Album
By: Acquania Escarne
Just to be crystal clear, I am not a Hip-Hop head by any means. But I do recognize good music when I hear it. On June 30th, Jay-Z released his latest album, 4:44. Track by track, Jay –Z unleashes a barrage of witty and thought-provoking lyrical content that seems to run circles around some of today’s younger artists. While people buzzed for days about Jay’s poetic apology to Beyonce in the song 4:44 (apparently the time he woke up to write the song), it is also worth noting that Jay-Z dropped serious knowledge on this album about how to become a creator of generational wealth in addition to his admission that he was working to become a better husband and father.
My personal favorite track is The Story of O.J. This song, named after O.J. Simpson, references several basic financial literacy principles. In this one song, Jay-Z raps about generational wealth, financial freedom, and black entrepreneurship. Read some of the my favorite lyrics yourself and tell me what you think. It’s quite obvious to me that Jay-Z has taken up another cause, financial freedom. To that end, he decided to use his platform, Tidal, to school millions of Millennials and People of Color — two groups who tend to need the most help when it comes to financial literacy.
Invest in Real Estate
I coulda bought a place in DUMBO before it was DUMBO for like 2 million/That same building today is worth 25 million/Guess how I’m feelin?/Dumbo…
As a real estate investor, I can definitely relate to what Jay-Z is talking about here. The goal of real estate investing is to buy a property low, and then reap the benefits of the property’s appreciation later. Two million for a building might seem like a big investment in DUMBO (short for Down Under the Manhattan Bridge Overpass), but if Jay-Z used his money wisely and made the purchase, he would have had an 11.5 percent return on his investment (ROI). Even with decades of growth, most blue chip stocks only see 10 percent ROI.
There are plenty of communities around the United States that are going through revitalization. The key is to invest in the neighborhood before it becomes a popular place to live and gentrification pushes the market beyond many People of Color’s reach. It’s not always easy to know what communities will make this transition, but signs of big name investors or retail stores moving in or evidence of the local government putting additional resources into the community is a good sign of impending change.
The Importance of Credit
You wanna know what’s more important than throwin’ away money at Strip club? Credit.
There is no doubt that your credit score, besides your social security number, is one of the most important numbers you have associated with you. This number puts you into one of two categories: (1) people with good credit or (2) people with bad credit. With good credit you can have access to capital, which you can then leverage to do more, such as start a business, go back to school, or buy a house. Once ruined, bad credit can jeopardize your ability to own a car or a house, get utilities, or even affect your ability to get gainful employment.
So if you have extra cash to splurge, use it wisely. Pay down debt, save for retirement, or repair your credit. Over time, consistent contributions to retirement savings, stock and mutual fund investments, and other savings vehicles, will have a greater return thanks to compound interest.
Buy Appreciating Assets; Then Pass Them On
I bought some artwork for 1 million/2 years later that s@#t worth 2 million/…I can’t wait to give this s@#t to my children…
Brand new cars lose 30 percent of their value as soon as you drive them off the lot. However, land, property, and in Jay-Z’s example, art, increase in value overtime if you make a wise purchase.
While you are alive, think about what you can leave for your children and their children and remember to teach your family how to maintain their wealth for generations. On another track, Jay-Z waxes poetic about the love he felt from his mother’s effort to take what little she had and invest it in treasury bonds for her then young son, Shawn Carter. We can see through 4:44 such efforts are the seeds of financial wisdom that can grow as your children mature.
Also, consider saving for your children and grandchildren to go to college by investing in a 529 Plan. Even a small contribution to their college education, can help them avert significant debt just to get a degree. Being debt free after graduation gives people opportunities and options they would not otherwise have. For example, without the pressure to start paying off student loans, recent graduates can be more selective about the job they take and seek the best one for their career versus the first offer they get to pay their bills.
Financial Freedom is Key
Financial freedom my only hope/F@*k livin’ rich and dyin’ broke…
I respect Jay-Z as an artist, and most importantly as an entrepreneur. He has become a renaissance business man taking proceeds from his music and creating an empire. Tidal is his most recent venture but definitely not his last. I respect the fact that he is using his platform and his influence to educate others about money.
I agree with Jay-Z that for People of Color, financial freedom is our only hope. I have a day job but have a few side hustles too. I plan on retiring early, and I have a financial plan that includes establishing generational wealth for my family. Education is important but financial literacy is invaluable. Financial freedom gives you flexibility and the option to decide how you spend your day.
As Chris Rock once said, “Wealth is not about having a lot of money; it’s about having options.”
I don’t work this hard just to pay bills or pay down debt and neither should you. Get your money right people. Teach yourself how to properly manage your finances. Support each other in our businesses and wealth management goals. That’s the only way to create change in ourselves and our community.
