Basketball Hall of Famer, businessman, and broadcaster Shaquille O’Neal says people who experience a significant increase in income should prioritize saving and investing before upgrading their lifestyle, sharing a personal financial strategy that has helped shape his long-term approach to building wealth, Money reports.
In the interview, O’Neal said he saves and invests 75% of his income while living on the remaining 25%. He said the approach is particularly relevant for professional athletes and other high earners whose careers may generate substantial income over a relatively short period.
“The first thing you should do is save 75%,” O’Neal said during an interview with The Wall Street Journal. “Then live off the other 25%.”
O’Neal said his philosophy developed after he quickly spent much of his first major endorsement check early in his NBA career. The experience prompted him to rethink his financial habits and focus on preserving wealth through disciplined saving and long-term investing rather than unnecessary spending.
Since retiring from professional basketball, O’Neal has built a diverse business portfolio that includes investments in technology companies, restaurant brands, and commercial real estate, as well as his work as a television analyst and entrepreneur. His business ventures have made him one of the most successful athlete-investors of his generation.
O’Neal’s advice comes as financial experts continue to encourage Americans to build emergency savings and invest consistently amid ongoing economic uncertainty. While personal finance professionals generally recommend savings goals based on an individual’s income, expenses, and financial obligations, O’Neal said his 75/25 formula reflects the realities of careers that may produce high earnings over a limited period.
Rather than immediately increasing spending after receiving a raise, bonus, or lucrative contract, Shaquille O’Neal encouraged high-income earners to establish strong saving and investment habits first, arguing that long-term financial security depends less on how much money is earned than on how much is preserved and allowed to grow over time.
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