Shaquille O'Neal is not a man to mince words, which is why it was cool to see the former NBA great give financial advice to children.
While at BITG's Charity Day, Shaq used an interview to tell kids how to best save loot. He explained it with words, trying to conjure a few imagines, which resulted in some percentages.
“Alright children,” he said while speaking to CNBC's Bob Pisani at BITG's Charity Day. “This is $100,” he continued, motioning to a blank sheet of paper. “What you want to do is, you want to rip the $100 in half.”
Take one half, he says, and “save it. Don't ever touch it. Put it away. Don't even look at it. Now you've got $50 left. Now, the smart people … the billionaires of the world, they'll take half of that $50 and put all that away,” he says, while adding another quarter of the piece of paper to the “save pile.”
“This right here,” he says of the remaining quarter, is your fun money: “You want to buy houses, you want to buy cars, you want to buy planes, you want to travel? This right here is what you have fun with.”
“A guy taught me that a long time ago, and it's been working for me,” he tells Pisani.
In short, at least according to Big Daddy Diesel, 75 percent of your loot should go to investments and savings, which leaves you with 25 percent to live off of. While his 25 percent is a lot more than our 25 percent, the theory he has isn't horrible.
Of course, if you're 25 percent is only a few hundred dollars per month, it might not be realistic to do such a thing. After all, there's rent/mortgage, bills, car payments, food, etc.
Again, Shaquille O'Neal meant well, even if there's a few holes in his financial plan.