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Keeping Up With The Knowles-Carters, Or Nah

Kendrick Lamar onstage with a microphone
Kendrick Lamar performing at Bonnaroo in 2012. Photo by Jon Elbaz

A rapper exhibiting sound financial management skills may seem like an oxymoron.

Rappers tend to be portrayed as open-handed consumers, by themselves and others. Fancy cars, designer clothes, top-shelf liquor and especially huge mansions are often taken as necessary trappings of success.

While superstars like Sean Combs or Dr. Dre have the talent, business savvy and celebrity to maintain such lavish lifestyles, the majority of musicians can’t forever keep up with the Joneses (or the Knowles-Carters, as the case may be). Like all but the biggest name entertainers of any variety, their careers may bring them high compensation if they are lucky, but not incomes that are unlimited or wealth that is immeasurable. Even so, many rappers and other pop musicians fall into the trap of spending in the most conspicuous way possible, rather than planning for the long term.

Enter an exception. Up-and-comer Kendrick Lamar raised some eyebrows by bucking the trend toward securing the largest, flashiest house possible - a trend driving shows like MTV’s “Cribs.” Instead, Lamar recently purchased a relatively modest 4-bedroom home in Eastvale, California, about an hour away from downtown Los Angeles. Elite Daily called it “the most non-rapper house ever.” The home reportedly cost $523,500 - a far cry from the multimillion-dollar properties acquired by other hip-hop artists, some of whom have enjoyed only a fraction of Lamar’s substantial success.

Lamar is both young and popular, and he may very well be the next big thing in his genre. He received multiple Grammy nominations in 2014. “Good Kid, M.A.A.D City,” his third album and his first on a major label, debuted at number two on the Billboard 200 and featured guest artists including Dr. Dre, Drake and Jay Z. The album eventually went platinum, selling over 1 million copies. GQ named Lamar its Rapper of the Year in 2013. A career on the highest level is far from unthinkable for him.

Yet Lamar has evidently decided not to focus on the acquisition of a certain kind of lifestyle, despite his artistic and commercial success. Instead, he continues to focus on his music. His “Control” verse, one of his highest profile lyrics last year, outright criticized his fellow rappers for giving too much weight to lifestyle trappings and too little to art. Several of his own tracks are also critical of the industry’s materialism.

Lamar is presumably comfortable, but isn’t chasing extravagant, brand-name clothes, watches, cars or mansions. He’s discussed publicly that while he will help family and friends - he bought a house for his parents - he is less comfortable spending large sums on himself. In an interview with Complex magazine, he recently acknowledged his worry about losing his money in the future.

“I treat myself every now and then, but for the most part I be wanting to be smart about it,” he said. “If my music were to stop today, how would I make this stretch for the rest of my life? My kid’s lifetime? Hopefully my grandkids. If I stopped today, how would I do that?”

These questions show the prudent mindset that is the foundation of financial planning, not just for rappers or musicians, but for anyone. Life is unpredictable, and thinking about what a loss of work would mean in the long term allows you to make sound financial choices. Part of that decision means looking at not only whether you can afford a certain house, but whether you really need it.

Many rappers have protected their affluence by diversifying their sources of income, notably through working as producers, heads of media companies or founders of brands. But younger artists who want to emulate the appearance of a successful lifestyle without the durable resources that make it possible may later find themselves broke or deep in debt. While Lamar’s future is bright, the fact that he is cautious with his spending sets a great, if unusual, example.

After all, it isn’t only the artists themselves who take their cues from the music industry. Many fans are also watching musicians’ lifestyle choices and internalizing them. Lamar’s message is that a comfortable home that suits both his needs and his budget is more important than outward appearances. It is a message that fans and fellow artists alike could do well to take to heart.

Executive Vice President and Chief Operating Officer Shomari D. Hearn, based in our Fort Lauderdale, Florida headquarters, is among the authors of Looking Ahead: Life, Family, Wealth and Business After 55. He contribued Chapter 2, “Relationships With Adult Children”; Chapter 9, "Life Insurance"; and Chapter 17, "Retiring Abroad." He also contributed a chapter to the firm’s book for young professionals, The High Achiever’s Guide To Wealth.

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