Recently a lot of artists and celebs have surfaced regarding their tax troubles. R Kelly must have wanted his share of media attention, and now he has it. He owes $4.8 million to the IRS that goes back as far as 2005! For a man that must have amassed over $100 million in his career, this is inexcusable.
R Kelly’s rep, according to TMZ, reports that he “is in the process of working everything out with the government and is confident that all his obligations will be satisfied.”
If we were to check, we’re willing to bet that R Kelly’s other discretionary activities are completely paid in full. Strip club visits? Paid in full and beyond. Fancy cars? Paid in full. Music studios? Paid in full. Clothing and jewelry? Paid in full. It’s amazing how we psychologically go above and beyond financially in our leisure spending and pay underwhelming attention to the finance issues that really matter.
Finances can be complicated. The old adage “more money, more problems” is entirely true. Yet, it’s completely necessary. There are many resources available to the wealthy, impoverished, and anything in-between. For every dollar you own, only a fraction of it is truly yours depending on your obligations. So even if you have a net worth of $100 million dollars, only a portion of that truly belongs to you.
Since R Kelly doesn’t come from an environment of money, it’s understandable that finance management isn’t innate. However, after being in the industry for over two decades, all excuses are completely gone. What example are you setting for children? What message are you sending to your fans that look up to you?
Wealth is In the Mind
Money will come and go for most people. It will stay for those who can master the responsibility of finances. This is why money flows from the hands of the hardly wealthy (majority) back into the hands of the wealthy elite (minority). We reference this all the time as we witness celebs foolishly lining the pockets of designer brand owners. These celebs will never stay “rich” for very long, and it’s proven over and over again.
Wealth goes beyond numbers. It’s about behavior. Anyone can have a million dollars, but only the frugal can KEEP a million dollars, and only the wealthy elite can increase it beyond a million dollars.
Do the wealthy elite pay a horde of taxes? Absolutely not. However, to play that game you have to learn the rules. You don’t simply just not pay your taxes. If anything, the wealthy elite anticipate their taxes and learn how to legally negate them (offshore, trusts, donations, foundations, corporations, etc.). No one will ever know how much the Royal British Family, a Rockefeller, or a Carnegie makes because they are smart enough to distribute their money in other vehicles secure from massive taxes.
If R Kelly isn’t careful, he’ll be facing bigger financial troubles. Hopefully, this is a wake-up call, and he’ll avoid these issues in the future. If not, he can look forward to sharing a homeless shelter with Young Buck and many, many others.
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