B*tch better have my money: life lessons from Rihanna
happy birthday to the consummate bad gal
Robyn Rihanna Fenty, better known to us all by her middle name, turned 37 on February 20. I wanted to send this on the 20th, but my kids’ snow days got in the way, so the Barbadian billionairess gets a belated birthday wish.
I know I promised you more tax talk; some of you are probably waiting impatiently, what with the 6,000 employees that were just laid off from the IRS (gift link) in the middle of tax season… but I want to do something fun real quick first.
See, you may not know this, but Rihanna is actually one of Fortuna Money’s unofficial patron saints. In honor of her birthday, I’m going to share some surprising life lessons I’ve learned from Riri’s story, starting with the time she almost went bankrupt… right after the break.
The break
Club Fortuna (a.k.a. my paid community): Office Hours are 2/28/24 at 11:30am ET.
All questions are welcome, but it’s a great time to bring your tax questions. I am not a tax advisor yet, but I am an IRS-certified VITA tax preparation volunteer 🤓 I’m happy to help you come up with smart questions to bring to your tax pro and/or remind you of stuff you might be forgetting to enter into in your filing software.
I’m also beta testing a Slack channel for Club Fortuna — current members should have gotten your invite this week. (If you’re a paid subscriber and you didn’t, let me know!) If you’d like to check it out, it’s a great time to subscribe!
This is what you came for
I was listening to a podcast about three years ago when I had a record-scratch moment. The interviewee mentioned something about the time Rihanna almost went bankrupt.
Say what?
The billionaire multi-hyphenate, infinitely GIF'able music star, CEO, mom, and philanthropist?
A woman so unflappable that she looks completely unimpressed while riding a jet ski?!
THAT Rihanna?
Being the financial nerd that I am, I had to know more.
The lessons I learned from her story are surprisingly relevant for anyone, even those of us who don't have industry-disrupting cosmetic and lingerie brands to manage in between Super Bowl performances and Met Gala appearances.
The story
Rihanna was only 17 when her first single, "Pon de Replay," came out in 2005, and not even 20 when "Umbrella" really crashed through in 2007. Although her musical career was going strong for another 10 years before she took a hiatus, her financial life almost ran aground in the hands of the accountants she'd hired while she was just 16.
In 2007, around the time Rihanna released the hit “Umbrella,” she had a net worth close to $50 million. But just two years later, the songstress-turned-entrepreneur faced bankruptcy. Business Insider reports Rihanna started 2009 with $11 million in cash and ended the year with $2 million. Her fall in income was attributed to ill advice from her ex-accountant who she later sued for managing funds incorrectly, keeping an unfair amount of profits, and not properly filing taxes, according to the HuffPost. Rihanna went on to win the lawsuit against Berdon LLP in 2012, coming out on top with a $10 million settlement.
- Afrotech, "How Rihanna Nearly Went Bankrupt, Then Rebuilt Her $1.7B Net Worth"
Rihanna's lawsuit stated that she "was a minor with… no knowledge or understanding of financial matters whatsoever," and that she relied on her accountants completely, placing full trust and loyalty in their actions. She alleged that her accountants charged exorbitant commissions on Rihanna's tour earnings, mismanaged her cash flow and expenses, mishandled her taxes, suggested that she buy a $7.5M house in Beverly Hills that she could not afford (and that turned out to be riddled with problems), failed to advise her on how to lower expenses, assumed control beyond the industry standard, and failed to uncover millions in unpaid royalties.
And now, after being driven nearly bankrupt, Rihanna has a net worth of $1.4 billion-with-a-B.
She’s one of Fortuna Money’s unofficial patron saints because she reminds us all that while it’s possible to go from prosperity to financial catastrophe, it’s also possible to come roaring back even better than before.
Lesson 1: Stay engaged.
I want to be crystal-clear here: I think Rihanna was preyed upon by unethical financial managers who committed professional malpractice, and victims are never responsible for the actions of the perpetrators who harm them. And I think it is no coincidence that as Rihanna got more engaged in her financial life, she saw a radically different trajectory.
As tempting as it can be to fully delegate unpleasant or frustrating tasks — especially financial tasks — it is still incredibly valuable to be engaged with those processes. It’s your money on the line. You don’t have to know enough to do your CPA or mortgage broker or realtor or financial advisor’s job for them, but you should know enough to ask the right questions when you talk to them. You should remain engaged enough to notice trends, and seek second opinions if necessary.
Also, you should work with professionals who want you to be engaged. If your CPA or financial advisor gives you recommendations, they should also make sure you fully understand those recommendations and how they fit your situation, and what the pros and cons are for each outcome. If they don’t have that level of patience and thoughtfulness with you, or if it’s like pulling teeth to get them to answer your questions… consider looking elsewhere.
Lesson 2: Hire people who respect and understand you.
Confession time: I liked Rihanna a lot before I dove into this story — I enjoy some of her songs, over the years I have owned more than a few items from her Fenty makeup and skin care lines (the face wash is amazing for sensitive skin), and she’s always seemed incredibly cool in a very effortless “no f*cks given” kinda way — but I hadn’t gone full Natalie Portman.
The true reason I had to go digging into all of this was that the podcast interviewee said something kind of snide about Rihanna (technically, I guess, he was quoting her accountant saying something snide, but the way he said it still made me mad), and condescension really pushes my buttons. The interviewee said something like “she tried to blame her accountant when she almost went bankrupt, and her accountant said ‘I couldn’t get her to understand that when you spend all your money on things, you have things, and not money.’” I was really pissed off about that dismissive, contemptuous attitude. It sent me down the rabbit hole to get the full story, and it also led me to what was probably the origin of the podcast comment:
[Her ex-accountant] slammed her in court papers, saying the celebrity blew her cash on clothes, jewelry and private jets.
“At the core of her claim is this belief: someone else is responsible for her conduct and its consequences,” he said in court papers.
That accountant’s job was to act in the best interests of an incredibly talented 16-year-old, to be her financial agent, to act in her best interest, to advise her on decisions, and to set her up for success. Yes, we are all responsible for our conduct, but he was the one responsible for giving her the advice to make wise decisions.
The fact that Rihanna became a billionaire after she kicked him to the curb is, in my opinion, a strong indicator that she wasn’t the problem.
A professional who respects you and understands you will work to communicate their advice to you in a respectful, clear, and decision-useful manner. They will keep trying until they know you have the information you need to make the best decision for you. And they will care about your wants, needs, and goals when they advise you. We’re all responsible for our choices, but an advisor who doesn’t understand what makes you tick isn’t the right fit — especially for a long-term relationship like financial management.
Lesson 3: Diversify.
Although I’m sure the $10 million settlement was nice, it’s a rounding error compared to Rihanna’s current net worth. But if Rihanna’s livelihood depended solely on her music career, this story would look very different — especially since she hasn’t toured or released an album since 2016!
Rihanna did something very, very smart: she diversified her income sources. In 2011, she started releasing perfumes. In 2014, she became a creative director for Puma. In 2015, she became a co-owner of Tidal. In 2016, she began releasing her music under her own label. In 2017, she launched Fenty Beauty (and has since expanded it into skin care and haircare). In 2018, she launched a lingerie brand. In 2019, she launched a fashion brand. She’s got sponsorships, movie roles, and a nonprofit. (In fairness to all the working moms who are reading this and feeling exhausted, please note that she did not have her first baby until 2022.)
Not all of Rihanna’s business ventures have been a success, but she hasn’t had all her eggs in one basket in years. She can afford to take aggressive risks in some places because she has multiple other strands woven into her safety net.
You might not be in a position to start eight businesses and a charity, but you don’t have to. You can look for other ways to add an income stream, make smart investments, and build your skillsets so you’re more indispensable and/or easier to hire. Also, increasing your “safety-net worth” might look non-monetary. Investing in your relationships and your community can create reciprocal support systems that make your life easier, happier, and more secure, even without an exchange of dollars.
Lesson 4: Lean into your passions and show up for your values.
Most of Rihanna’s net worth is a product of her ownership stakes in her beauty and fashion brands. Rihanna speaks often about her love of beauty and fashion, and has been widely acclaimed as a style icon — and she successfully turned that passion and talent into a business empire.
It may be hard to remember the Before Times, but way back in 2017, Fenty Beauty was hailed as a true disruptor in the beauty industry. It offered one of the widest and highest-quality ranges of foundation shades available at any brand, across the spectrum from fair to deep — and, in what was considered especially noteworthy, the brand ensured all shades had a range of undertone options. The brand’s shade range was hailed just two months later as one of Time Magazine’s Best Inventions of 2017. Most beauty brands simply were not offering options for the entire spectrum of skin tones, but Fenty Beauty offered their full range of makeup products designed for the broadest possible palette of skin tones and types.
Rihanna knew that there was a void for these products; she was reportedly very hands-on in every stage of the development process, and she put inclusivity at the heart of her brand:
Fenty Beauty by Rihanna was created for everyone: for women of all shades, personalities, attitudes, cultures, and races. I wanted everyone to feel included. That’s the real reason I made this line.
- Rihanna
What’s also cool about this is that Rihanna’s phenomenal success in this arena has prompted many other brands to do better.
And it’s not just makeup. I admit I don’t know as much about Rihanna’s clothing lines, but I know they’ve been praised for offering size-inclusive options. Her brands’ marketing campaigns and fashion shows regularly hire models of different ages, sizes, genders, sexualities, races, ethnicities, and abilities.
It’s clear from the many ways that all of Rihanna’s brands show up for inclusivity in both marketing and design that she’s not just paying lip service — Rihanna is deeply committed to her values here, and she’s also shown the world that diversity, equity, and inclusion are really good for business. (Maybe some of these companies should be paying attention?!)
Please note, I’m not shilling the millennial myth that we should all be “following our passions.” Rather, I think the world is a better place when we bring our passions and show up for our values in whatever we do. As a very different sort of patron saint once said, “Not all of us can do great things, but we can do small things with great love.” These days, that might mean swimming against the current, which brings me to my last lesson…
Lesson 5: Try not to care too much about what other people think.
What Rihanna doesn’t do a whole lot of? Giving f*cks about what other people think. As a branding genius, it’s clear she understands what people think pretty well. I’m not going to sit here and defend every choice she’s ever made, but I also think she wouldn’t be nearly so successful if she let the possibility of other people’s disapproval stop her. And as someone who occasionally spends too much of my own precious energy worrying “but what will people think?” I find her DGAF attitude more than a little inspiring.
There’s this incredible moment that lives rent-free in my head when Rihanna was riding on her security guard’s shoulders at Coachella in 2012… and rolled a blunt on his bald head. (Note: recreational weed wasn’t legal in CA until 2016.)
Yes, I know; she’s a global star, it’s a concert, it’s California, no one’s going to arrest Rihanna at Coachella for rolling and smoking a joint. BUT STILL! It’s such fabulous audacity!
So what if we took a little more of that “who’s gonna stop me?” attitude with us into our next job interview, salary negotiation, or sales call? What if we made more of a practice of meeting our needs out in the open? What if we let ourselves be fully supported by the people in our lives, even if it seems a little over-the-top? Could we make space for ourselves to flourish in new and unexpected ways, even in a world that doesn’t really want to let us?
Rihanna makes me think the answers to those questions are worth finding out.
Thanks for reading!
Everyone who makes it to the bottom of my newsletter is my favorite. If you enjoyed this, please tap the heart or drop a comment (or write back!). It might seem small to you, but those little acts of engagement help other people discover Fortuna Money (and really keep me going). 💖
If you have a financial patron saint you’d like to suggest, I am open to submissions, especially if you tell me the lessons you’ve learned from them!
And if you’d like support untangling and calming your money life, hop on my calendar for a session or a no-cost discovery call.
Finally, if you know someone who might enjoy reading this, please forward it. No one should have to money alone!
p.s. There’s speculation that the very NSFW video for Bitch Better Have My Money is an elaborate revenge fantasy against the terrible accountant. Seems legit.
I'm inspired by this analysis of Rihanna badass-ary and I deeply love the 'how to apply' framework. Chef's kiss!