When Family Wants the Payday

Jameis Winston, recently described giving family and friends $400,000 a MONTH. Many discussing this burden as a Black tax where when one family member makes it, all of their resources have to help the family. A very entitled behavior that for some can become abusive, enabling, and those who make it with skeletons, blackmail.

In terms of broader financial value, public estimates place his net worth around $20–25 million, largely from roughly $75–80 million in career NFL earnings plus endorsements. So essentially he has enough to recover without being destroyed but, how can people in his position protect themselves?

Correcting The Regret

With over $4 Million he’s personally stated as giving his family and friends a year here are ways it’s advised to stop this BS once and for all. If you’re income is over $3 million a year, you most likely have a financial manager but, there is no formal management against ain’t shitness. It’s too low level for high brow finance experts to factor in and give good advice without sounding evil (or racist). To show it’s not a “Black” thing there is a whole show called Succession on HBO showing 5 seasons of family entitlement without accountability and qualifications. So soak that in before you get offended. You’re not the first person to make it and its time to set better frameworks for protecting assets.

Funds Over Family

Many Black success stories come from family and friends pouring into these people before they made it. Please note, this only applies when the successful one who made isn’t ethically challenged and a dirt bag.

When the Giver Isn’t a Scammer

Knowing many have helped to protect the family and friend dynamics, there need to be Investment Fund registered for family and one for friends. Just because someone is family doesn’t mean they don’t have the ability to be the next big thing either. Many great family investments turned from say pro sports to amazing film directors and lawyers. So if there is potential of gains providing an investment towards other familiar talent, make everyone apart of the process. If money is being given and nothing else can be done, include a system that makes everyone accountable for all gains and investments.

When the Giver is A Scammer

Not everyone who makes it is a good person. Some make it using family and friends and then distancing themselves to not repay or acknowledge their so called greatness came from group and family sacrifices. When you see someone who’s going pro or getting movie deals or the dream job that comes with financial advancement, leave a paper trail and digital-third party contract signing systems that require witnesses to keep your return and investment viable. If you’ve paid for school don’t just pay, create a fund showing these investments and turn that person’s high potential outcome a business within itself. This is to protect you’re investment in them when they make it. Unfortunately people with questionable business practices either by their own choices or when they bring in people in who have their own agendas, can practice illegal activities that implicate you. Your own accountability system can provide proof to show the purpose and reason for the financial support was clear, the repayment was agreed, and understood as legal when you gave the money or invested in them.

When It’s Legitimate Help

For more altruistic funding, when family or friends need that GoFundMe level support, knowing your income is over $3 million, always have a foundation. This requires those who need help to file for a grant or documented applications so that the support is transparent and potentially nontaxable. It also requires people to put in the effort of showing why they need it and involve others to share the empathy or at least an accountability system to prove it’s a legitimate need. This method requires a set amount of funds per year and payments directly to the rent or mortgages. Directly to the utilities. And when the funding for that year is up, then nothing else should be provided, with emergency exceptions. If there is a solid for profit, investment group system the foundation funds should rarely dry up before the end of the year.

This can also apply as scholarships and student fees (athletic or equipment based). Make it a public family acknowledgement so no secret funds can be exploited or distorted.

Funds To Floss

When someone wants money over $5,000 for frivolous things, this may be harsh but force them to lease it. And when there is no need for the flossing, setup a consignment or family eBay page or pawnshop to return value in these items. There are consignment system to submit for higher values items. There are also jewelry resellers that should be included in the purchases with then agreement, with the resellers knowing they got an item they can sell within 2-3 years. If the family member wants to keep the item they’d have to pay a fee every 2-3 years similar to leasing until they can buy it flat out. In some rare cases have the purchase owned by the investment fund itself. So that everyone can earn and gain from it knowing exactly what’s happening. We all know for some people, group awareness is stronger than private contracts, making it harder to “what has happened was” anything. All and all, just don’t give anyone anything without proof. This includes anything from a car or a T-Mobile bill. Doesn’t matter if it’s your mother, or how nice someone was in the past.

Action or Literacy

Everyone is so sure if you take Cousin Peanut and all the family to college they’re learn financial literacy. No, for those who aren’t academics, the best way to catch them up to the perils and responsibility of money is to simply include them. Free the need to solely control the funds and use the investment group and foundation setups with caps that require group and family voting. Make them apart of the process where they can judge and collectively gain from investing and be aware of the losses. Force the family to discuss and raise awareness. That conversation alone would outpace any night school class. Think about how valuable gossiping time would be if it was toward actual tangible discussions?

This inclusion stops a lot of entitlement when it’s known the successful person isn’t the end all of the money. When they know others are now in on their request (or scams) it frees that one resource from not only saying no, protects them from the individual guilt of their success.