Although not much has been revealed about the financial conditions of rapper Lil Wayne, there has been wide spread reports that he may be filing for bankruptcy and he may have to liquidate his assets. This would mean losing out on big money makers like Nicki Minaj and Drake.
Everyone knows I love my hip hop music like crazy (especially 90s and socially conscious stuff)…
But is it just me, or are you also curious about why such huge hip hop stars often seem to run into money problems… ?
This leaves us asking ourselves, ‘is something that Lil Wayne could’ve done or can do to prevent himself from going bankrupt’?
People close to me hear me go on about how frustrated I get about bad money management! Arghhh.
Instead of being another complainer on the Lil Wayne train, I’ll tackle this as a ‘case study’.
Why? Because there may just be a way out of this for him if he somehow manages to wait out the storm he is stuck in.
Here’s some practical solutions for Lil Wayne:
- 1. Accounting and Tracking the Royalty
Considering that the Young Money/Cash Money Records is a big label which generates several hits from all the famous singers that it has under contract, it only becomes obvious that there is sufficient royalty floating into the business.
This being said, it becomes highly necessary to keep track of these royalties and accounting for the same.
The rappers themselves don’t have the time to do this and so Lil Wayne will need an efficient accountant who can keep track of these royalties and account for the same and ensure that nothing is amiss.
- 2. Effective Money Management
The ability of managing money does not come easily and considering that label deals with enormous amount of money possibly on a daily basis, the need arises to hire an accountant who can handle as well as manage the money.
Just because the business is generating a lot of money doesn’t necessarily mean that it is being utilised wisely.
The rapper needs someone who can keep a tab on what is being done with all of the income.
There are several computer programs which are available to help get this job done as well.
- 3. Making Payments On Time
Apart from guiding Lil Wayne through the finances of the industry or advising him on the monetary aspect of the contracts that are being drawn, an accountant working for Lil Wayne should also ensure that all the artists who are working under the label are being paid on time.
It is very important to ensure that is not a single payment due irrespective of whether the payments are for the artists or otherwise.
This may have prevented the run in the rapper has had with the IRS.
These things could’ve saved Lil Wayne from getting on the verge of bankruptcy.
Well, here’s hoping he will hire a great accountant and not have to face the same thing all over again.