Though popping bottles and brandishing Bugattis may not be thoughtful investments, beyond sonic displays of reckless spending hip-hop can be a surprising source of sound financial advice.
Among the most fruitful verses is Hip-Hop Cash King Kendrick Lamar’s on the otherwise-unmemorable “YOLO.” Amid other recommendations, Lamar advises low risk investments, saving in a 401(k), purchasing real estate, loaning only what you can and buying rather than renting. (According to FORBES estimates, the 26-year-old Compton native pulled in around $9 million over the last 12 months.)
Full coverage: Hip-Hop Cash Kings 2013
To coincide with the release of Forbes' 2014 Investment Guide, here are a few tips re-imagined through hip-hop lyrics.
"Floss a little; invest up in a mutual fund." (Busta Rhymes, “Dangerous”)
Rhymes may be talking about bragging, but the American Dental Association recommends flossing daily. Forbes' 2014 Investment Guide suggests diversifying your portfolio by spreading wealth in at least three mutual funds.
"Men lie, women lie, numbers don’t.” (Jay Z, "Reminder")
Don't rely on a partner to manage your finances. Check bank statements for yourself, and maintain at least some separate accounts from your spouse.
"Get your money right, be an international player.” (Dr. Dre, “Get Your Money Right")
Invest internationally. Forbes' 2014 Investment Guide recommends using ETFs to keep the cost of diversifying internationally low.
“Control what I hold and of course be the boss of myself, no-one else will bring my wealth.” (Big Daddy Kane, “A Job Ain’t Nothing But Work”)
Don't rely solely on your financial advisor. Know how she is getting paid and whether she is earning commission, and don't be afraid to fire your financial advisor if the relationship is not beneficial.
“Let’s toast to paid mortgages, lasting marriages.” (Talib Kweli, “Art Imitates Life.")
Get married. A marriage bonus could earn you a tax cut. Paying down your mortgage will also free you up to invest as you would like.
“Never loan somebody what you need right back.” (Drake, “All Me”)
Don’t lend if you can’t. Be sure to report all family loans to keep peace with your relatives - and the IRS.
“Invest in your future, don’t dilute your finances, 401k, make sure it’s low risk, then get some real estate, 4.25% thirty-year mortgage.” (Kendrick Lamar, "YOLO")
Kendrick Lamar's verse on this track is a veritable gold mine of financial advice. Adding commercial real estate to your portfolio is a great idea, as is maxing out your 401(k) contribution: In 2014 you can contribute $17,500, or $23,000 if you’re 50-plus.
"We don't lease we buy the whole car." (Jay Z, "Can I Live")
Buy, don't rent. Though Hova's advice pertains to automobiles, the principle can be applied to any asset. Purchasing leaves you with a valuable object to resell, rather than just money spent.
"Diversify your millions, you can live off the interest / Make every revenue stream flood, see where it took me." (Xzibit, "Everything")
If you aren't an expert investor, diversification is a safe bet. Forbes' 2014 Investment Guide recommends diversifying globally to boost your portfolio's risk-adjusted performance.
"I'd be lying if I said I didn't want millions / More than money saved, I wanna save children." (Common, "The 6th Sense")
Don't forget to give back - investing in your community may be the most meaningful contribution you can make. Consider building a philanthropic component into your business and plan annual gifts.
