Months After Joining the Billionaires Club, Magic Johnson Gives Valuable Banking Advice

It takes a lot of financial understanding to become a billionaire. Well, Earvin “Magic” Johnson recently spoke about making wise decisions to achieve long-term financial stability. His transformation from a standout basketball player to a prosperous businessman is proof of how strategic steps can do wonders for wealth. As a result, he spoke about the vast $5.8 trillion commerce- the banking industry.

During the “ON With Mario Interviews Magic Johnson“ podcast, Magic mentioned, “Well, first of all, about money. Understand that you know the credit cards. You know it can put you in debt fast and in a hurry. So make sure you understand that first, understand that, uh, the dollar.”

“Because a lot of us didn’t grow up in money. So you have to learn money, the power of it. How to save money, uh, how to invest money, you know, so, uh, make sure that you educate yourself about those things. And then last but not least, make your money. Make money for you.”

He also shared how he grew up poor, along with several siblings. However, having role models and mentors who taught him how to make money and invest it correctly is what eventually helped him accumulate wealth. In fact, he has spoken about having good mentors several times. “Get yourself a mentor – get somebody to help you,” he once said.

Magic’s observations serve as a sobering reminder of the risks associated with debt accumulation and the necessity for people to practice financial prudence. Clearly, he practices what he preaches. How else would be become a billionaire?

Read More: LeBron James’ 40,000 Points Leave Magic Johnson Astounded With Another Crazy Element

How Magic Johnson became the fourth billionaire athlete

As good as he was during his time with the Los Angeles Lakers, he made it big because of smart business investments. In 2023, ‘Forbes’ announced that he joined the billionaire club; the fourth billionaire athlete, right after Michael Jordan, LeBron James, and Tiger Woods.

As per the information available, Johnson’s career earnings add up to  $40 million and he also earned around $5 million per year in endorsement money off of the court. But what about the rest of his net worth? Well, he owns small stakes in professional teams. If you didn’t know, he is a minority owner of the WNBA’s Los Angeles Sparks and MLS’s LAFC.

Further, he is also a founding member of Guggenheim Baseball Management- the ownership group of the Los Angeles Dodgers. Plus, he is a part of the membership group that purchased the NFL’s Washington Commanders. But it doesn’t stop here.

Magic Johnson Enterprises was a major game changer. The company is a big player in movie theatres, fast food, real estate, and healthcare. The company has a controlling stake in EquiTrust- a life insurance company that further bolstered Johnson’s net worth to $1.2 billion.

What do you think about Magic Johnson’s financial advice? Let us know in the comments below.

READ MORE: “Happy Birthday to the GOAT”: Newly Turned 27-Year-Old Simone Biles Receives Heartfelt Note From Magic Johnson