It may interest many black folks that incoming president Donald Trump was once hired by Mike Tyson as a wealth advisor. Tyson, once the “Baddest Man on the Planet,” earned over $300 million as a boxing champion but later filed for bankruptcy. Meanwhile, Trump, known for his real estate empire and a stint in politics, turned financial stumbles into billions.
What can their relationship and different trajectories teach us about wealth creation and preservation, especially in the context of building generational wealth?
Here are 7 key takeaways in making & keeping generational wealth.
Big Savings for Big Wealth
Making money isn't the hard part; it's keeping it. Tyson's fortune was enough to support his children for life, but his fortune quickly disappeared. Trump faced setbacks like bankruptcy and lawsuits, but he preserved his core assets, diversified investments, and turned his name into a billion-dollar brand. Despite these setbacks, Trump preserved his core assets and diversified his investments.
Takeaway 1: A big pay check doesn’t mean financial security. Focus on turning income into assets that grow over time.
Flex Less, Save More
In Black communities, success often comes with unspoken pressure to show it off, with flashy cars, designer clothes, and extravagant vacations being symbols of "making it." Tyson's downfall serves as a cautionary tale about the consequences of unchecked flexing. Trump's approach was less flex, more leverage, reinvesting in real estate, licensing deals, and ventures.
Takeaway 2: Build wealth by prioritizing long-term goals over short-term gratification. You don’t need to impress anyone—your future self will thank you.
Financial Literacy Is key
Tyson had talent, fame, and fortune, but one thing he didn’t have early on was financial education. Without the knowledge or tools to manage his money, he relied on advisors who didn’t always have his best interests at heart.
Trump, love him or hate him, mastered the art of leveraging debt, minimizing taxes, and navigating the business world to his advantage. Whether he learned it in business school or through sheer audacity, his financial savvy kept him afloat even during tough times.
Takeaway 3: Financial education isn’t optional—it’s essential. Learn how to budget, invest, and protect your assets. And if you’re hiring advisors, make sure they’re trustworthy.
Diversify your portfolio
Tyson's financial plan was solely focused on boxing, resulting in a single income source after his career ended. Trump, on the other hand, diversified early and often, investing in real estate, reality TV, and branded stakes in products. Black wealth builders should diversify their income streams to protect against financial shocks.
Takeaway 4: Don’t put all your eggs in one basket. Multiple streams of income mean multiple chances to build wealth.
The Role of Systemic Barriers
Black communities face institutional obstacles, including limited credit access, discriminatory housing policies, and under-representation in financial systems, which hinder wealth-building. Trump's success was attributed to a $1 million loan from his father and access to networks, while Tyson, despite his fame, had less systemic advantages.
Takeaway 5: Recognize the systemic challenges but don’t let them define your story. Seek resources, build networks, and leverage tools like credit unions and community investments.
Resilience and Reinvention
Tyson and Trump both demonstrate resilience, turning financial missteps into opportunities. Tyson reinvented himself as a media personality and entrepreneur, reviving his cannabis business and podcast, Hotboxin' with Mike Tyson, after losing his fortune. Trump's ability to turn setbacks into opportunities is also noteworthy.
Takeaway 6: Mistakes happen. What matters is how you bounce back. Reinvention is a powerful tool in your wealth-building arsenal.
Adopt Practical Wealth Habits
Here are some habits you can start today:
• Live Below Your Means: Make your money work for you, not the other way around.
• Invest Early and Often: Whether it’s stocks, real estate, or a small business, let your money grow.
• Educate Yourself: Financial literacy is power. Take courses, read books, or watch YouTube tutorials.
• Build a Legacy Mindset: Shift from “flex culture” to “legacy culture.” Think generationally, not momentarily.
• Choose Your Circle Wisely: Surround yourself with people who share your financial goals and values.
Conclusion
Mike Tyson and Donald Trump's financial journeys highlight the importance of wealth preservation and growth. Black wealth builders face a steeper path, but the principles remain the same: discipline, learning, and focusing on the bigger picture. Wealth is not just earned, but passed down, so it's crucial to build, preserve, and grow for the next generation.