RWR Women Who Are Rich
For those of you who read this blog regularly, you have come to know of me as a financial planning fanatic and a bit of a fashionista…but allow me to take a moment out today to show you another side of me – a very proud Mom.
My son, Erik Findling, is a musician and he has been selected to play at the 2017 Grammys in Los Angeles on February 12. He will be one of 32 high school kids who will be playing on the red carpet while the musicians arrive at the event. Erik is so very passionate about his music and he works so hard to promote himself in an effort to pursue his dreams. I am beaming.
And so when I was thinking about this week’s post – I thought that a bit of a Grammy’s-inspired mashup might be appropriate. Instead of Rich Women Rock – we’re going to be looking at Rich Women [who are] Rich this week.
Technology has changed all of our professional lives and rock stars are no exception. With the introduction of MP3s followed by streaming apps like Spotify and Apple Music, people are listening to more music, while paying for less of it. Musicians who are succeeding financially aren’t necessarily creating their fortunes from their music alone. In fact, they use new music as a promotional tool to drive interest and remain relevant. If they can stay in demand, then they can make the most of other revenue streams, such as touring, merchandising, becoming brand spokeswomen, and more.
Some of the music industry’s most successful women have created lasting wealth with some of the same techniques that we talk about throughout this blog. Diversification, investing in businesses you believe in, and more…let’s take a look at some of my favorite success stories.
Diversify like Dolly
Dolly Parton was one of the very first musicians to maximize her financial opportunities through diversification. She has been writing and performing music since the late 60s, but she has since created other forms of revenue that augment her music career income. These revenue streams include acting, a movie production company, clothing lines, and of course, her own theme park, Dollywood.
Creating additional streams of revenue is definitely a strong approach (some say, the only approach,) to build meaningful wealth. And, while I am not suggesting that you open a theme park – I do want you to think about how you’re getting paid and think outside of the box – beyond just payment for your time. (i.e. a paycheck). You might consider pursuing equity agreements with your clients and/or employer. Another approach might be asking your employer or client for residual commissions on the projects where your efforts are driving ongoing results. Many of us work on projects that will make our employers money long after we’ve been paid. (I.e. think about the woman who designed the Nike logo for $35 in 1971…) It’s important for you to consider the value that your work will have beyond the paycheck and advocate for yourself and what your work will be worth to your employer or client as the years go on. In many cases, if you can develop a payment strategy that pays you over time for your success, you can create on-going additional income streams that may help secure your financial future.
Be Frugal Like Beyoncé
In addition to her myriad revenue streams – sold-out concerts around the globe, endorsement deals, a clothing line, and more – Beyoncé has been known to tout her frugality as one of the secrets to her success. Especially when it comes to her famous frocks.
Now – it’s easy for Queen Bee to tell us that she doesn’t have to pay for clothing because designers flock to her with free threads — but there is something to be learned from her formula.
There are so many awesome clothing rental brands these days. From Rent The Runway to Le Tote and Gwynnie Bee – you can stay current and fashionable while still having enough left over to help pursue your investment goals. You know I am all for a good investment in your closet – as long as you’re not sacrificing investing in your future at the same time.
Mark Your Territory like Taylor
There are so many things that impress me about Taylor Swift. She has stood her ground with music streaming companies…opting out of Spotify and demanding that she and her fellow artists get paid appropriately by Apple Music. She has built on her own success and now she calls the shots with her record label – not the other way around. And, for a 25 year old – she is surprisingly dedicated to investing in Real Estate. From Los Angeles to Nashville and New York to Rhode Island, Taylor has reportedly invested nearly $70M in real estate around the country. Her net worth is estimated at $250M, which means that she has a little less than a third of her money in real estate. This is a pretty traditional percentage….it’s just that when talking Taylor…the numbers get exponentially bigger as a result of her rising stardom.
Investing in Real Estate involves special risks such as potential illiquidity and may not be suitable for all investors.