Stevie Wonder has been a prominent figure in the music industry for over five decades, having won 25 Grammy Awards and sold over 100 million records worldwide. In addition to his musical accomplishments, Stevie Wonder is known for his financial acumen and wealth management strategies. By examining Stevie’s financial secrets, aspiring artists and entertainers can learn valuable lessons on how to manage their finances and invest wisely.
Secret #1: Early investments
One of Stevie Wonder’s financial secrets is his early investment strategy. Stevie began investing in stocks and real estate at a young age, which contributed significantly to his net worth over time. By investing in companies such as Microsoft, Honda, Apple, and Pepsi, he was able to reap the benefits of compound interest and grow his wealth over time.
Wonder also invested heavily in the music industry during the earlier parts of his career, which we’ll get more into later on. This strategy also allowed him to diversify his income streams and not rely solely on his music career.
Secret #2: Real estate investments
Another financial secret of Stevie Wonder’s is his real estate investments. Stevie has a diverse portfolio of properties, including a 160-acre ranch in California, a waterfront home in Newport Beach, and several other properties across the United States.
Another one of the amazing properties that Wonder purchased was in Bel Air, California where he spent $14 million for an 11-bedroom estate with around 20,000 square feet. This came shortly after he made a massive profit when he sold his Beverly Hills home for $10.5 million. His real estate investments have contributed significantly to his net worth over time, as well as provided him with passive income streams.
Secret #3: Smart spending habits
Despite his significant wealth, Stevie Wonder is known for his smart spending habits. He has avoided financial pitfalls common in the entertainment industry, such as overspending, frivolous purchases, and debt.
Because of his impairment, Wonder hasn’t had to spend big on flashy items like cars, focusing more on being comfortable in his own home. Instead, he has focused on investing in experiences and assets that provide long-term value.
Secret #4: Business ventures
Stevie Wonder has also been successful in his business ventures, which have contributed significantly to his net worth. He founded a music publishing company, Black Bull Music, as well as a production company, Wonder Productions. These ventures allowed him to diversify his income streams and not rely solely on his music career.
Wonder is one of the rare musicians who was able to secure the publishing rights to his songs from early on in his career. While many relinquish those rights in exchange for more exposure, Wonder continues to receive royalties and is able to write his own music, and was free to collaborate with anyone despite their studio affiliation. Wonder also knew that radio was a valuable industry for musicians and receiving further exposure, and he launched a company that focused on acquiring large-market radio stations.
Secret #5: Philanthropy
Finally, Stevie Wonder’s philanthropic efforts have also contributed to his finances and reputation. He has supported numerous charities over the years, including the American Foundation for AIDS Research, the Children’s Diabetes Foundation, and the United Negro College Fund.
In addition to making a positive impact in the world, his philanthropic efforts have also helped him build a positive brand and reputation. “The reality is, your money is only as good as you’re able to help others with it,” Wonder said.