frugal underground

10 Interesting Money Facts about the King of Pop and My Thoughts on These

In his death, Michael Jackson, the King of Pop has left legions of fans mourning over one of the greatest pop artists the world has ever known. His legacy of music is one that will live on through the years despite his early demise.

I’ve grownup on Michael Jackson songs and for a time, was obsessed about learning how to “moonwalk” – until I finally just gave up. Being a Jackson fan however has not made me oblivious to the fact that in the later years, his finances, as with his career, were quickly taking a turn for the worse. When you think of the millions that have passed through his hands from being a performer extraordinaire, it’s just bewildering how he left this world reportedly awash in millions of debt as well.

Let’s take a closer look at some of these mind-boggling money facts:

$700 million – For the entire duration of his career, it is said that Michael Jackson earned at least this much in album sales, concert tours, and other business interests.

$115 million - Thriller, his second album released in 1982 which went on to become the best-selling album of all time with over 51 million copies sold (according to the Guinness Book of World Records), was estimated to have earned a whooping $115 million for the King of Pop.

$1.5 million - Was the settlement amount Michael received from Pepsi Co. after pyrotechnics accidentally caused his head to be burned while shooting a Pepsi commercial. He donated the whole amount to the Brotman Medical Center in Culver City, California where he was treated. Brotman later renamed its burn unit to “Michael Jackson Burn Center.”

$5 million - His share of the 1984 Victory Tour headlined by The Jacksons – an amount he later gave to charity.

$47.5 million – Was the amount he paid for a music catalogue of 4,000 songs including about 200 of the Beatles’ best tunes, which he bought from ATV Songs in 1985. This venture is said to have earned him about $300 million in later years.

$17 million - Neverland Ranch was reported to have cost this much way back in 1988 when he acquired it.

$20 to $30 million – Living the life of a music superstar apparently cost a lot. At some point in his life, Michael was reported to overspend in the tens of millions every year.

$4 million - Was how much the upkeep of Neverland cost. Enclosed in the 2,800-acre property were a private zoo, a movie theater, a ferris wheel, and a roller coaster.

$30 million – The amount reportedly spent already by AEG Live, the organizer for Jackson’s series of 50 concerts set to start supposedly on July 13, 2009. An estimated 800,000 people have already bought their tickets.

$236 million – The King of Pop’s estimated net worth as of 2007.

Looking at these figures, here are perhaps some of the lessons we can pick up from them:

Give as much as you receive.

Maybe Michael did lead too lavish a lifestyle. But he was also known for his philanthropic work that span across countries around the world. Hungry children, the poor in Africa, hospitals, and the HIV/AIDS research were only a few of those who benefited from his largesse.

Invest in worthwhile ventures.

Before all the trappings of the superstar life got to him, Michael Jackson was also a savvy businessman. Proof of this is his going into the music cataloguing business, which proved to be his one lifeline when the going got tough.

Spend less than what you earn.

Whether we earn by the tens or the millions, the basic principle of not spending more than you earn applies obviously applies to all walks of life.

Have a care for the future.

It’s sad to see that for all the people surrounding him, he was really financially ill-advised. And because most of us will never have the chance to make even a tenth of what Michael Jackson earned in a year, it makes it even more important for us to keep our own goals and security in mind.

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I’m a big fan of Freecycle, it not only leverages the power of the internet, but also works on the local level so it helps build community.

At base it’s not much different than handing something you don’t use down to your younger brother or sister – and most of us have done that.

The way it works is that you go to the main Freecycle website and find the closest local group.  Each group has its own Yahoo! group which provides a mailinglist.  If you have something you just want to get rid of, you post it on the group and if any member has a use for it they can email you back through the group.  If you get multiple offers, you choose whichever one you like best.

The catch is that you can’t accept anything in money or trade for the item.

Everything has to be completely unencumbered and free.  You provide it, they pick it up, no money changes hands.

It’s a great way to be frugal:  you can often get fairly expensive items like couches and washing machines for nothing.  Now the best stuff does go pretty quickly, so if you’re serious about Freecycle you need to set it up so you get immediate notifications and call or email as soon as you see something you want.  The early bird really does get the worm.  (Please pardon the cliche)

I touched on this briefly at the beginning, but I really have to discuss the local aspect of Freecycle because I think it’s one of its greatest strengths.  Humans are naturally social, we’ve lived in groups and communities for as long as we’ve been on Earth.  Freecycle builds on that strength by making sure groups stay relatively small and locally focused.  It builds a community within a community and that helps cut down on “freeloaders,” who would try to game the system to get as much as possible whether they have a need for it or not.

Freecycle works because it’s in tune with human nature and doesn’t try to fight it.  Give it a try, it can save you a ton of money.

If you have anything you want to add – good stories or bad – or even competitor sites – don’t forget the comment box at the bottom.  That’s what it’s there for.

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Some research says it can.

I just read an interesting article on the topic called “C’mon, get happy. Seriously, it pays.” According to the article,

“[researchers] found that those with a song in their hearts are more likely to, among other things:

• Get a job interview
• Be employed
• Perform well at work
• Get higher evaluations from bosses
• Make more money
• Have jobs with more autonomy, meaning and variety
• Avoid job burnout

Sounds like quite the deal, huh? And the important take-away from this info is that the research suggest that some people are successful because they’re happy, rather than happy because they’re successful (which seems like the order what most of us would expect).

They also found that how often you’re happy matters more than how happy you are when you’re happiest. (It’s more a question of your general disposition.)

Of course, happiness isn’t everything—other qualities (like talent, perserverance, etc.) can make you successful even if you’re a sourpuss. But I’d suggest that happier people can also get by with less, so aside from doing better at work, they also can save more money.

What would make you a happier person? Can you do it right now? Or do you even go for this idea?

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