Shaq Gives Simple Financial Advice To NBA Players

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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[dresports]

Shaq was the smartest man on the court., Don’t underestimate his goofy character. He is wise and funny. I would hang out with him if we played on the same team,

[kaileeinatree]

"Don't spend one million bucks in a day"

[justinmetcalfe]

The cynic in me thinks there's not many NBA players watching Tech Insider videos.

[poweryoutuber]

Shaq is right about that "i got another coming" thought.

That is the most financially destructive thought in every finance bracket!
😱

[TDM]

He forgot to mention the best financial advice to give these athletes
“Don’t blow it, Keep it simple and Count ya money”

[amehta]

That’s why Shaq is Shaq! He made a ton of $$$ but he was never satisfied and wanted more unlike his contemporaries who spent and spent their way into bankruptcy.

[Will_Moffett]

Get drafted in the number one position in the NBA draft. Be unstoppable at both the offensive and defensive end of the court. Play with a teammate known as the Black Mamba. Profit.

[jumpstartmillion]

Damn Shaq is a sharp dude. That is really great advice.

[Nonotme]

People don’t realize even millionaires have problems and Shaq had his fair share.

[smec_]

Shaq always looks like hes about to cry

[johnmarco]

that's probably good advice for any job

[Soundafek]

Good advice, but players like to play the impressing game and shine for the ladies. They can't see the forest for the trees until the cash machine runs out..

[ordinaryextraordinarybrotha]

thanks a lot Shack that's good advice

[michaelyoon]

50 percent index fund. 25 percent YOLO wall street bets. 25 percent spend on consumer goods ;)

[dreday]

The day I come across big money this is what I'd do. First come up with how many years I expect to live. Divide that money by how many years I expect to live. That would be my yearly budget.

[someguy]

This should be obvious to everyone. Even I knew this a long time ago, but I guess some people just live in the moment.

But what he's not stating is that he made $20 million a year NBA compensation, but made another $10-15 million from endorsements/etc. It's easy to save $10 million a year with 3-4 large incomes!

[randyhendrix]

'Ahej heaheoh shoesuueh beahoe" Shaq

[ericmcdowell]

A good hunk of that goes to Fed and State taxes as well/

[png]

easy to say but ur 25% is nowhere near my 25%