Rihanna’s 2016 Album Anti featured a song which was, in all likeliness, about her former accountant, Peter Gounis. The singer-songwriter sued her former accountant in 2012 and won almost $10 million in the settlement. The high-profile lawsuit revealed that in 2009, Rihanna’s accountant led her to a near-bankruptcy situation. "BBHMM (B**** Better Have My Money)", the song in her 2016 album Anti exactly depicted her mental situation after getting duped by her accountant, and we have good reasons to believe that she co-wrote the song along with the likes of Travis Scott and Kanye West to take sweet revenge on her financial accountant. However, as every failure teaches us a lesson, we have something very important to learn from Rihanna’s insolvency. What is it? Read on to know more.
The Entertainment Industry Has Many Such Horror Stories To Tell
Pop artists like Rihanna often find out a way to vent out their emotions following real-life failures through what they do best — their songs. Often, they end up creating some masterpieces. Take the case of Rihanna. She was screwed up by her financial manager, someone she trusted, and she came up with this gruesome music video. If you have already listened to Kendrick Lamar’s "FEAR", you already know how exactly he expresses his fear about bankruptcy, and Kendrick refers to Rihanna’s case in his song, too. The showbiz industry has plenty of financial horror stories to tell and if you just use Google, you'll be surprised at the number of reports about Hollywood stars who bellied up pretty bad. But what do these horror stories teach us? You must know your money.
Watch Your Money Carefully
Rihanna accused her accountant and his firm of money mismanagement and sheer negligence. The firm swindled the pop star by charging her unreal commissions which amounted to almost one-fourth of her net worth at that time! In the court, Rihanna claimed that her accountant advised her to invest in a Beverly Hills mansion which caused a big dent in her bank account. She even lost money on a tour and alleged that her accountants didn’t inform her that the tour was going to be a big failure. The firm even didn’t take due care of her taxes. As Rihanna is a top-line pop star, she could recover from the financial ruins by releasing one hit single or album after another. Her net worth stands at an estimated $230 million now. But if you cannot sing like Rihanna and are unable to write such strong lyrics, what would you do if you face a similar situation? The first step to prevent insolvency is to watch your money carefully.
Choose Your Financial Advisor Wisely
Not all financial advisors are as bad and shady as Rihanna’s. There are certainly trustworthy advisors around you who can almost always guide you in the right direction. Always go for a certified financial planner or a CFP as these professionals and firms are well-regulated and do not forget to do a thorough background check. If possible, go for a fiduciary as these professionals are legally bound to work in the best interests of their clients. Do not choose a financial planner who brags about beating the market. Not everybody can. Everybody is not Warren Buffet. If you come across some financial planner or advisor who’s seemingly trying to take certain risks which you certainly don’t want to take, simply walk away and look for another advisor.
Be Financially Literate
The first step to avoiding bankruptcy is to become financially literate. If you understand your finances, the industry jargon, and the nitty-gritty of personal finance, your advisor would be able to discuss in detail the opportunities, the threats, and the possible pitfalls. This way, you can have a more meaningful conversation with your advisor. You can read a few books, get a smartphone app, or attend some webinar to get financially literate. Knowing the basics of your finances is the first step toward preventing bankruptcy.
Don’t end up learning financial management the hard way as Rihanna and many others did. In the unlikely event that you get swindled by your accountant or personal finance manager, you can always get legal advice. Be smart with your finances in the first place to avoid bankruptcy. You can’t recover from financial losses as Rihanna did, can you?
