Taylor Swift is no longer the youngest homemade billionaire
Taylor Swift was once the youngest homemade female billionaire of the 35. According to Forbes, the new record holder is Lucy Guo, co-founder of Scale AI.
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With one large purchase, Taylor Swift did “to make her greatest dream come true.”
Music Mogul bought the Master for her first six albums after Scooter Braun-Some Swift publicly criticised in 2019. After Braun purchases the Master, the singer is about to regain ownership of her art, re-record those albums and release “Taylor’s version.”
But now it’s all over. Late last month, Swift revealed in a lengthy statement on the website thanks to negotiations with private equity firm Shamrock Capital, and perhaps the music that once belonged to Brown is now her all-cash boat road. Shamrock Capital purchased master rights to Swift’s first six albums from Braun’s Ithaca Holdings in 2020.
“To say this is my biggest dream is that I’m actually pretty understated about it,” Swift wrote. “Thank you to everyone at Shamrock Capital to the first person to offer this to me.
She added: “This was a business deal for them, but I felt like I saw what it was for me. My memories and sweat and my handwriting and my decades of dreams.”
Swift has clearly impressive business insights. After all, she had the greatest growth tour of all time. Forbes estimates its net worth of $1.6 billion. In October 2024, the publication designated her as the world’s wealthiest female musician.
But what is clear from her statement is that for her, purchasing these masters is more than a business decision (but financial experts agree that it will probably help her make more money in the long run). It was about her peace of mind: Finally, she is pleased to know that her music is her.
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Let’s be authentic: Most of us never buy such a quick size. That’s because most of us never have a quick-sized bank account. However, the singer not only buys her master, but her rationale behind the decision also raises important questions. When is the peace of mind in your bank account worthy of dents?
It’s a difficult question and the answer is not that cut and dry.
“What she did was buy back her powers, which are very emotional, especially for women, but it gives you the power to control your own destiny. For Taylor, it’s a huge thing…but she can afford to do it.” “For others, people who don’t have Taylor Swift’s money, it just depends on what we’re buying and why.”
What does Taylor Swift and her master mean to buy
Swift has not revealed how much she spent on the Master. Still, it’s safe to assume that these masters are not inexpensive. Some outlets estimate that the singer spent up to $360 million.
A source close to negotiation said the price range for rumors reported to USA Today was “very inaccurate.”
However, in any case, the selling price must have been high.
Kristen Kelly, co-founder of Financial Education Resource The Wall Street Skinny, says that business makes sense, even if the purchase was clearly very emotional for Swift. The power of Swift’s brand lies in her ability to control her story. Owning a Master on her first six albums is an important piece of that puzzle.
“Her whole business, her everything is her brand. …It was a very important strategic decision for her overall,” says Kelly. “To be honest, I think it was probably still the right strategic move, even if she had to pay more.”
Needless to say, this purchase sends a strong message to the music industry and other artists, to established and up-and-coming artists.
“She has the eyes open to other music artists too, and she’s doing that, so it’s like she’s pushing the industry back,” says certified financial planner Monica Dwyer. “I feel the industry is stronger than the individual.”
How to know when a big purchase is really worth it
Most of us never spend money like Swift, but the pop star business deals provide important lessons about personal finances, mental well-being and the real value of buying. Certainly you may not be able to purchase a master recording, but you may need to decide one day if you are buying a car of your dreams. Or dream house.
It’s important to be able to identify when something is important enough for you to guarantee that large price tag.
“Let’s face it. Many of our decisions are not made by the logical aspects of our brain,” says Dwyer. “The more you become richer and richer, the less you need to worry about those little accidents. The cost of repairs, electricity, gas and food in our home is not considered in the minds of Taylor Swift or very wealthy Americans.”
Here are some important considerations when deciding whether to make a large purchase:
- Think about the lasting power of what you are buying. “You can spend money in the sense of going out. You go to Peter Ger Steakhouse, buy steaks, eat them, and they’re gone,” says Kelly. “This is what she puts in and holds value in the same way you buy it for your home and it increases.”
- Ask yourself: Is it okay if what I buy becomes worthless? “What happens when the value reaches zero?” Kelly says. “Is that something you can live with?”
- Give yourself time to think about it. “Occasionally, what I do is if you shop on a website, I put what I want in my cart, but not buy,” Dwyer says. “I wait a week and ‘Do you even remember what you put in that cart?” And if that’s still what you want and you remember it a week later, it’s worth buying. ”
Contribution: Melissa Ruggieri