Private jets and undervalued real estate
While a luxury yacht is a liability that requires constant maintenance, Jackson told Roberts he considers spending to fly on private jets worthwhile, although it's not clear if he currently owns any.
“With all of that touring and stuff like that, if I decide I’m not going to be on a bus, I’m gonna fly private everywhere I go,” he said. “If it makes less wear and tear on me because I'm going to 93 different territories, yeah, I don't care about the expense.”
This is reminiscent of finance guru Suze Orman’s attitude to spending. She said eating out is “one of the biggest wastes of money” out there but she likes to splurge on private air travel because “time in money.”
When he’s not touring the world for events, Jackson is busy investing in real estate. In June last year he spent $2.4 million to buy multiple properties in downtown Shreveport, Louisiana, according to the Shreveport Times, citing official records.
As the reportedly second-largest landlord in the city and the owner of G-Unit Studios downtown, it appears Jackson wants to revitalize Shreveport and build equity through these investments.
His savvy moves offer some lessons if you’re trying to build wealth too.
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Learn MoreLessons for ordinary investors
Jackson’s decision to fly private but not buy a yacht demonstrates his ability to prioritize needs over wants. While a jet serves as essential transportation, saves time and offers possible tax benefits, a yacht would’ve been a drain on his cash flow.
Similarly, most families can bolster their finances by avoiding expensive purchases they have little need for. For example, instead of buying costly vehicles and taking on large auto loans, they can pour that money into real estate or stock investments to protect their retirements.
In 2024, the average auto loan balance was $24,297, according to Experian. The New York Fed recently observed that auto loan delinquencies have been rising across credit score bands and area income levels as "higher car prices combined with higher interest rates have driven monthly payments upward."
One guideline to keep in mind is that your total car costs, including gas, insurance and loan repayments, shouldn't be more than 20% of your pre-tax income. Trading in your car for a cheaper model to reduce or eliminate the auto loan could allow you to start saving and building wealth.
As Jackson once rapped in his 2007 track "I Get Money," “Bling like "Blaow!, you like my style Ha, ha! I'm heading to the bank right now.”
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