So, rapper Kanye West was broke — $53 million, to be exact.
Despite adorning his 2-year old daughter in pastel furs and riding around on private planes, the Stronger rapper bombarded social media when he announced his debt problems on Twitter. This “poverty,” as he noted, was due to his passion of pursuing a career in the fashion industry.
His first Tweet read, “I write this to you my brothers while still 53 million dollars in personal debt… Please pray we overcome… This is my true heart…” followed by a series of sentiments concerning the financial consequences of his dream.
Follow your Dream, Ditch your Wallet?
Experts from Rapid Loans say that investing on fast cash or any loan to pursue your passion excessively might have its consequences — just look at what happened to Yeezy.
Kanye leaves commentators puzzled when it comes to his debt claims. Apart from his lack of frugality, Yeezy seems to endlessly spend on his designs. Despite his growing following, West learned the truth about the industry the hard way.
Apart from the tragedy of his label Pastelle (a 7-month story of failed endeavours), he also invested $30 million in his G.O.O.D. merchandise line, which never made it to stores. His collaboration with Nike for the Air Yeezy sneakers fell short in stemming the losses. The Yeezy seasons aren’t helping much either; in fact, the first one resulted in his $16 million debt.
There’s a Fine Line
Thanks to his wife Kim Kardashian, Yeezy is slowly regaining financial stability. This, however, should not void the lessons there are to be learned.
For example, separate savings and personal assets from your venture funds. Instead of funding his creative projects with his main money-making tools (concerts and albums), Kanye relied heavily on venture partners and bank loans. Sorting your priorities and the money for it will spare you from debt. Pay off all necessities first before others.
A sound strategy will also keep you away from Yeezy’s path. Wishful thinking will never cut serious financial decisions. Make everything work by developing a plan that covers all bases and by partnering with financial advisors.
Don’t reach a point where you beg for a loan the way Kanye did with Mark Zuckerberg. Keep your passion and finances in tact by sorting your priorities and knowing your limitations. Yeezy will be proud…probably.