Baller Financial Advice from The Rock

I’m not gonna lie: I’m a HUGE fan of Dwayne ‘The Rock’ Johnson. One of the earliest pieces of media where I truly started to appreciate DJ’s craft as an actor was in the HBO exclusive ‘Ballers.’ For those who don’t follow, the show portrays life after pro football for Spencer (played by Dwayne Johnson) as he dives into the world of financial advise for other pro athletes. The show does a great job of bringing the viewer into the complexities of navigating life as a, and after being, a professional athlete.

In season 1, we find a scene where Spencer is meeting up with some other pro athletes, one of whom is very excited about a cash purchase he just made: a brand new sports car!

Dwayne Johnson’s character wastes no time in offering some quick financial advice: avoid purchasing a depreciating value. If it drives, flies, floats, lease it.

Don’t get me wrong: I understand that leasing anything is a piece of financial advice that can be met with various opinions depending on your financial philosophy. Regardless of your financial philosophy, there is one truth that we can all agree on: depreciation is a real thing.

Whether you are against leasing altogether or are on board Spencer’s ‘lease, don’t buy’ advice, either position is based on the reality that assets have the potential to depreciate.? Here’s 3 quick ideas following that train of thought:

• Research Your Potential Purchase’s Depreciation Trends: whether you decide to make a purchase or not, it’s a good idea to have some awareness of depreciation trends for the purchase you are considering. At the very least, be informed about the value your purchase will lose once you become the owner so you can make the best decision.
• Consider a Comparison of Purchases: This is referring to more than comparison shopping, where you price out the same or similar products among different providers (although this has been very lucrative for me when I’ve done this). In the example above where a sports car can be leased or purchased, simply run a comparison between the 2 scenarios: how much money will you lose by purchasing a vehicle then selling 2 years later VS how much money will you spend by leasing a vehicle for 2 years. Chances are, one of these figures is significantly lesser than the other.?
• Have a good reason when purchasing a depreciating asset: The goal of this article isn’t to prevent you from purchasing depreciating assets, but rather making sure you consider what you can prior to doing so. One great way of doing this is making sure you know your ‘Why’ in life, as it can be a very helpful tool when making decisions like these. If you don’t clearly know your ‘Why,’ this might be a good thing to investigate first before compromising yourself in further instances

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Ish (ishspeaks.com | LinkedIn | Instagram) is a communication expert that works with students & young professionals to make the most of their journeys. Ish travels to schools, organizations, and conferences all across the country to help participants make memorable experiences, grow as leaders, and be workforce ready contributors. He’s also an author and podcast personality, leveraging these spaces to ensure students are clear on their purpose along the way.

Do you organize co-curricular or professional development events for #rezlife #studentleadership or #youngprofessionals? I would love to learn more about your goals in 2024. Perhaps you and I are in alignment (or you and someone in my network) for a collaboration. DM me or send an email to [email protected]