To most of us, it seems like glitter and gold to see rappers in their Bently, Maybachs, gold chains and $10k bottles in the club, but as we have all seen, money can come quickly with number one hits, sold out tours, appearances and endorsements. Check out the top 5 reasons why rappers go broke in the game!!
Poor Money Management
Becoming a rapper often comes with a kit that includes expensive jewelry, a nice fleet of cars, big spending nights in the strip club, continuous alcohol and marijuana consumption, a needy entourage and purchasing a mansion.
Compulsive spending can be a rapper’s biggest nightmare. Years of keeping up with the cliché rap lifestyle can cause a financial disaster.
In most cases, the rapper’s entourage doesn’t include a financial adviser who will have his or her back throughout their career. As a result, many rappers are forced to hire financial advisers who aren’t completely dedicated to making sure the artist is levelheaded about expenditures. At other times, some artists are stubborn and unwilling to take proper financial advice.
Failure to Pay Uncle Sam
Money in the music industry can come fast if a rapper releases several hits. Rappers with chart-placing singles and albums can earn from $10,000 to $100,000 per show. But most of the money earned is not taxed and a lot of rappers fail to pay Uncle Sam at the end of the year. That mishap usually comes back to haunt them during the waning moments of their careers.
Lack of Continuous Success
When a rapper releases a string of hits, it’s hard to imagine them losing their standing in music. But the average hot-streak for a rapper is 3 to 5 years. This means they have about four years to earn money and save as much as possible before the next big sensation comes along and takes their spot. There are dozens of artists who were hot in 2002 who can barely sell a record or draw a large crowd today.
Baby Momma Drama
Baby momma drama can be a financial back-breaker for a rapper. Artists who struggle to produce more hits often fall behind in child support payments. The monthly payments can add up quickly and leave a once successful rapper searching for new ways to earn income.
Spotted @ ROLLINGOUT.COM