I’m a keep it 100. Nipsey Hussle is my favorite rapper. Period. If you know me or have been following my journey here at Black Market Exchange for some time then you know I’m an avid fan.
To show my loyalty to the Marathon, here are two articles I wrote to explain why:
As you can see, Neighborhood Nip is about that cash homie and I’m here for it.
As a Certified Financial Educator with a deep love for hip-hop, it only makes sense that Nipsey would reign supreme among the sea of other rappers in the game. With that being said, I’d like to introduce more money lessons that can be learned courtesy of his latest release, Victory Lap.
“I got checks and balance.” from Victory Lap feat. Stacy Barthe
The phrase “checks and balances” is nothing new, particularly in politics, and in this marathon it’s providing insight as to how to manage your money better.
The best way to keep up with your checks while monitoring your balances (i.e. expenses) is to use a budget. Now I ain’t saying you have to have a zero-based budget like the homie Dave Ramsey, but you do need to check that cash flow to make sure you’re not paying too much for something or overextending your coins on things you don’t need.
“White boy in Manhattan, pay my tax.” from Rap N***s
Okay, at first glance this one may be a little confusing so let me clear the air. Nipsey is a smart businessman and knows the importance of paying his taxes to keep the IRS off his back and block. Since transitioning from the street life to going legit, he knows how valuable a tax preparer, accountant, or financial planner can be when it comes to managing his dough.
The best part is, whoever handles your taxes, which must be done annually if you ain’t know, doesn’t even have to live where you live. Nipsey is LA born and bread but states his tax guy is thousands of miles away in NY.
Personally, I live in TX and my tax guy is in NC.
“In the end, you have to protect yourself at all times.” - Floyd Mayweather
“Open trust accounts deposit racks.” from Rap N***s
Trusts have been in place for a long time and the super rich (and wealthy) have taken full advantage. To brush up on what a trust is, peep game.
Nipsey not only has a daughter but now a son with actress Lauren London. So it’s only right he manage his money right today, tomorrow, and for his legacy. This isn’t the first time he’s mentioned trust funds in his raps though. Back when The Marathon dropped in 2010, he spit on Love?, “Trust funds for Imani, in case this life take me.” Needless to say, his kids can trust that pops is making the right moves in regards to their future well-being financially.
If you’re considering opening a trust fund for kids, be sure to consult a lawyer and make sure it’s set up right. You don’t ever want your child to be in a situation where he or she can’t access the trust’s assets on a technicality.
“Million dollar life insurance on my flesh.” from Rap N***s
This may go without saying, but tomorrow isn’t promised. Since everyone won’t be able to set up a trust for their families, another option that’s typically cheaper and more of a standard for financial wellness is life insurance.
Now, I’m no life insurance guru but I do know that it’s necessary so thanks to Courtney Richardson over at the Ivy Investor, here’s all that you need to know about life insurance and how to make it work for you.
“Re-invest, double up.” from Last Time That I Checc’d feat. YG
Last time that I checked, if you don’t reinvest your money your bound to lose what you’re trying to keep. Have you heard of inflation? Yeah playa, the decreasing value of your dollars is a realer than a $2 bill.
Another reason to reinvest your cash is to double it. A neat trick to find out how long it’ll take to double your money is the Rule of 72. The math goes like this:
You divide 72 by whatever interests you’re expected to earn on your money. So if you invest $1,000 today and expect a 10% return on it every year, then your $1,000 will be $2,000 in about 7 years (7.2 years to be exact). Now that compound interest working at its finest.
“Only difference is now the money more mature.” from Young N***A feat. Puff Daddy
Although we get older and mature, money doesn’t really mature in the same way. However, one way it does mature is through bonds.
Bonds have what’s known as a maturity date which is the date you would get your money bag after receiving interest payments for a designated period of time. Think of bonds like a loan and one day that loan must be paid be back. That’s what maturity means. Simply paying the loan back.
“For generations we been dealt bad hands with bad plans.” (Kendrick) from Dedication feat. Kendrick Lamar
The wealth gap is a big issue and doesn’t seem to be closing anytime soon. As a matter of fact, data shows that it would take over 200 years for the average Black family to build wealth of a White family today.
Now we can all improve when it comes to many management, me included. But some obstacles are out of our hands. Neighborhoods we live in, elected officials pushing certain agendas, and access to resources can all play roles in being dealt “bad hands.”
So what’s a person to do when the odds are stacked against them financially? A great starting point is right here at Black Market Exchange, which is a personal finance and investment education site that incorporates hip-hop in its money lessons and mixtapes. How dope is that?
“I f**k with Rick Ross 'cause he teachin' wealth.” from Blue Laces 2
Game recognize game and Nipsey is paying respect to a fellow economic empowerment rapper, Rick Ross. ICYMI, Rick Ross has been huge in buying back the block by franchising several Wingstops and Checkers round the country. Nipsey actually has deep ties with Fatburger, an LA-based burger joint.
In addition to buying back the block, many of your favorite restaurants are actually in the stock market in which you can own a piece of. Some well-known chains include Domino’s Pizza (NYSE: DPZ), Cheesecake Factory (NASDAQ: CAKE), and even Wingstop (NASDAQ: WING) to name a few.
“So one of our investments had become strategic.” from Blue Laces 2
Nipsey has been not only making moves in the media, but also in his neighborhood in a big way. He and the District 8 LA City Council have teamed up with Vector90 to create a co-working space and incubator dedicated to helping the inner city and underrepresented entrepreneurs. The space opened on February 15th of this year.
Nipsey is the definition of hustle and his efforts have helped him achieve much success, but the odds are typically against someone with his upbringing and resources simply aren’t available. He’s decided to dead that and bring resources directly to the hood.
“Ain't really trip on the credit, I just paid all of my dues.” from Hussle and Motivate
There’s a debate between whether credit or cash is king but in all honesty, they both are just in their own ways.
If you’re looking to buy a home or a car, get a small businesses loan, or do other things that may require borrowing money, then your credit score will be king in whether you get the loan and how well the loan can be in your favor.
Your credit score ranges from as low as 350 to as high as 850 and is comprised of 5 components each carrying different weight to make up your specific score. To better understand your credit score, here are 5 lyrics that make it plain.
“F**k livin' basic, I'm takin' risks.” from Hussle and Motivate
When it comes to investing and business, risks can range from safe (conservative) to not so safe (aggressive). Although having safe risks in place such as money market accounts and certificates of deposit is cool, real money and wealth are made by including some higher risk moves like stocks, currencies, and entrepreneurship.
“Never stop grindin', cherish no possession.” from Status Symbol 3 feat. Buddy
There are two main categories that will encompass all of your money matters are assets and liabilities. Although Nipsey is saying to not cherish possessions, you do want to have a healthy amount of assets in comparison to liabilities to have a higher net worth.
What’s net worth? Simple. Take how much money you have in assets (i.e. real estate, stocks, cash) and subtract how much money you owe in liabilities (i.e. auto loan, mortgage, credit cards) and the result is your net worth.
Net Worth = Assets - Liabilities
“We ain't get accepted, we just reinvested.” from Status Symbol 3 feat. Buddy
Nipsey mentioned reinvesting in another track called Ocean Views as well.
Essentially, he’s saying to reinvest your money so you can make more money. One way this is done passively in the stock market is through Dividend Reinvestment Plans also known as DRIPs. Find out more about how DRIPs work here.
Follow the money with our stock market newsletter, PAPERTRAIL, your daily dose of Wall Street flavor.
“I negotiated a better deal.” from Song: Succa Proof
Nipsey has said time and time again that if he were to enter a deal with a major record label, it would have to be on his terms or essentially, a better deal than what many artists are given.
Whether your putting bids in for investments against a seller or negotiating a deal such as a partnership, be sure to read over the terms and that they are fair and with some favor to you.
“Goin' crazy spendin' all this cash, goin' crazy spendin' all this cash.” (TeeFlii) from Keyz 2 the City 2 feat. TeeFlii
Answer this questions with all honesty, would you rather spend that money or save that money? Most likely, you’d spend that money and it’s understandable. But even Neighborhood Nip has realized that stackin’ his paper through savings and investing his money to make more money is truly the way to go.
When you spend, spend, spend, mentally you’re in a different place. You’ll constantly want to get more money just to spend it all over again. Discipline is the key to financial wellness and proper money management can truly improve your health as well.
Stressful situation from money mismanagement and lack of money can dictate things like unhealthy eating habits which affect your physical health and increase levels of anxiety which affect your mental health.
“Got a safe that's full of Franklins.” from Grindin’ All My Life
Nipsey took a turn with this one but with good reason.
As much as you need to save your money in a bank account and invest it into things like the stock market, real estate, and businesses, it’s always good to keep some cash on hand that you can access very quickly.
The difference that Nipsey is pointing out here is that you should have a safe in your house somewhere. Now I ain’t talkin’ about Ocean’s Eleven style safe, but something that requires a key code or lock of some sort. That money under the mattress, in a shoebox, or in that Crown Royal bag is too easy to access. That may have seemed cool when you were young, but step your security game up and grab a locked safe from your local discount department store.
“Can't be f**kin' off your lucci, gotta save up.” from Million While You Young feat. The Dream
“The marathon continues.”
That’s the infamous mantra throughout all of Nipsey’s music and online media. He consistently pays homage to the idea of success is a marathon, not a sprint and building wealth is no different.
A big part of building wealth is saving your money for emergencies as well as to cover for bills and expenses in the event you lose a primary source of income or any source for that matter. A great way to save is to make it a habit through challenges.
“I ain't gon' make a hundred mil' off in these streets.” from Loaded Bases feat. Cee-Lo Green
Nipsey Hussle knows how to get money. That’s no secret. But it took for him to realize that he wasn’t going to become wealthy by just hustling on the streets. The saying goes most millionaires have at least 7 streams of income which is why it’s no surprise that this article on self-made millionaires talks about how they made their money with one of the most important things they did was diversify your income streams.
Since Nipsey’s Bullets Ain’t Got No Names mixtape days, he has since opened a tech-driven clothing store with his brother, Black Sam; partnered with a local Fatburger; opened a dispensary that sells the only true strain of Marathon OG; and invested in cryptocurrency-based companies like FollowCoin and Vezt Inc. This is in addition to his albums and streaming sales, live concerts, and everything else that generates him a profit through music.
“Large profit margin on the longshots.” from Real Big feat. Marsha Ambrosius
If you’re new to investing then something you should know is that usually if there is more risk involved then the reward tends to be bigger as well.
Growing up in South Central LA is no easy task as depicted in Nipsey’s lyrics and movies like Boyz N the Hood which tends to place labels on the youth as underdogs. Many of the affluent believe that, “they’ll never make it out and those kids are just a product of their environment.” But that’s far from the truth.
Nipsey made it and is bringing his whole crew with him so show that they’ve made something out of nothing and continue to make more with less. That’s the true definition of a large profit margin.
“Tryna make a slow change, mama still slavin' for a low wage.” from Double Up feat. Dom Kennedy and Belly
You’re probably asking yourself, “Who the hell wants slow change?!” Well if we’re talking passive income then sign me up.
One of the biggest issues with a typical 9-to-5 is that you can only make so much money within a given time frame. This could be an hourly wage or annual salary. But with passive income there is no cap on how much money you can and it’s not as dependent on time.
Some of the most tried and true ways to make passive income in when it comes to investing is through dividend paying, interest income from bonds, and rental property income.
“People looking like, "Hey! Black nigga' stay in your place." from Right Hand 2 God
Unless you were living under a rock then you should be pretty familiar with Donald Sterling’s disgusting departure as owner of NBA team LA Clippers. It’s crazy to think that I’m 2018 we’re still dealing with racism to this degree and it’s not just towards Blacks but towards Latinos, Indians, Asians, and the list goes on.
It’s because of racism like this that wealth gaps and wage inequality exist. Don’t ever let someone short change you of your coins because of the color of your skin.
Investor Takeaway: There's much to be learned from this west coast legend so pace yourself on this money marathon until you hit your victory lap.
Disclosure: This editorial is by no means a solicitation to buy or sell any of the above-mentioned securities. It is merely a means for educational purposes. All investors are subject to their own research and due diligence.