While you were sipping on lemonade, the artist, parents, and moguls, known as Beyonce and Jay-Z, have been busy building an empire. We’ve been making the wrong comparisons. Which is often the case with black artist, and particular sports superstars. In a decade we will be likely comparing these superstars not to their contemporary entertainers but to the Walton family, the Mars family, in other words, billionaire scions of industry. In may Forbes officially pronounced the couple as a billion-dollar couple. (Forbes)

A billion dollar net worth is undoubtedly generational wealth. Coupled with the time value of money, even with the most conservative of investments, they and their heirs should never be broke.

Time Value of Money

What is the time value of money? The time value of money describes the greater benefit of receiving money now rather than later. The theory holds that, because money can earn interest, any amount of money is worth more the sooner it is received.

For example, if you have $10,000 and place into an index fund that pays out 10% of interest over 25 years (without you adding anything else to it) that 10,000 will be worth slightly over $100,000. If you were able to add $750 a month to that index fund, for your retirement, in 25 years, you will have slightly over $1 million saved. That is the way the time value of money works. Interest and compounding interest, paying you.

Financial literacy and education is not taught in most schools but it should be. Most Americans live paycheck to paycheck and can not come up with an extra $1000 for an emergency. The lack of financial literacy plays out in a much more public scale when professional athletes go broke shortly after their career ends. How can any professional athlete go broke when they can take just 1 million never touch it for 25 years and when they are old have $10 million in the bank. It’s because they don’t know.

Ice In Winter

We all could use the financial wizardry of Jay and Bey. It doesn’t require dope lyrics or an amazing voice. It does involve seeing an opportunity and taking a calculated risk.

Jay-Z and his partners purchased the Tidal streaming service for $56 million in January 2015, after two years of re-branding and promotion. Sprint bought a 33 percent stake for $200 million, valuing the company at $600 million. (https://www.vanityfair.com/news/2017/01/jay-z-just-received-a-huge-new-investment-valuing-tidal-at-600-million).

“I sell ice in the winter, I sell fire in hell
I am a hustler baby, I’ll sell water to a well”
-U Don’t Know, by Jay-Z

Formation

Beyonce is the Queen when it comes to the gate. Her Formation World Tour sold over 2 million tickets and brought in over $250 million to the Carter family. Her album Lemonade was the best selling album in the world in 2016. In addition to touring and making new music, Queen Bey has investments in tech startups such as Sidestep and reportedly interested in investing in the Houston Rockets.

CONCLUSION

Together the two have set their expanding family up nicely. They’ve work their given crafts, they make calculated sound business decisions, and reap the rewards of their hard work. We can all take these lessons to heart whether your financial net worth is in the millions or billions or in the negative.

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