A Lesson in Finance: 5 Things to Learn From Taylor Swift

Can’t resist a little Taylor Swift tune popping into your head? Us either. But let’s press pause on the music for a second and dive into the depth of Taylor Swift’s universe. This mega-pop sensation isn’t just about catchy tunes —  she’s smashed records, ruled the charts, and soared to stardom. She isn’t just hitting high notes in music; she’s also hit billionaire status. There’s a treasure trove of financial wisdom to be mined from her journey. Whether you’re a budding entrepreneur, small business owner, or someone figuring out and navigating the turbulent economic landscape, you can learn from her journey.

Say YES to Adaptability

Remember that whole Taylor Swift music rights controversy? If it’s slipped your mind, let’s jog your memory quickly. Swift was tied up with Big Machine Records until she split from the label. Then, just a year later, Big Machine got snatched up by none other than industry heavyweight Scooter Braun. And guess what? All of Taylor’s music rights suddenly came under Braun’s ownership.

Moving forward, every time someone wanted to use Taylor’s music in a film or TV show, Braun made money. Another reason this was possibly a worst-case scenario: Braun was tight with Swift’s arch-rival in the industry, Kanye West. Talk about Taylor’s worst nightmare coming true. That’s when Taylor decided to flip the script on her career strategy. She started re-recording all her old chart-topping hits with a new record label. She dropped her album, 1989, featuring those re-recorded tracks, ensuring she got back what was hers.

Now, let’s talk about finance. What can one take away from this situation? Sometimes, you’re not going to make the perfect choice. You might not always nail the investment game or build partnerships resulting in fairytale endings, but resilience matters. We’ve spoken about cyber resilience before, and it’s a big deal, especially for investors and financial advisors. In this digital jungle, threats lurk everywhere, but being quick on your feet is critical. It’s not just about companies or the bigwigs in the game; individuals must also stay sharp with their finances. Predictive strategies are absolute gold, so ensure you have a backup plan ready to tackle those threats head-on when they appear unannounced. That’s the ticket to sustainable success and steering clear of financial crises down the road.

Make Smart Investments

Invest. Invest. Invest!

Let’s talk shop, especially for all you HENRYs (high earners, not yet rich) out there. Swift’s a lesson for us: be wise with your earnings and stay ahead in the investment game. While you’re raking it in, put that dough to work so it grows over time, making more money for you. According to the Wall Street Journal, Swift parked a chunk of her earnings in real estate, boasting an approximate $150 million portfolio. If real estate’s your cup of tea, dive into property investments. Do you prefer mutual funds? Head in that direction. The key is to find what clicks for you and your wallet. If financial juggling isn’t your strong suit, contact a finance expert or investment advisor to steer you right. It’s all about squeezing the most out of what you make, keeping those returns flowing, and kicking debt to the curb.

Be Wise with Insurance

If one is to look at Taylor Swift’s prolific career and astounding financial success, a typical pattern you can observe is that she’s all about safeguarding her intellectual property. From trademarking her name to album titles and catchy song phrases, she’s got her creative empire under lock and key.

Now, what’s the big lesson here for businesses and individuals alike? Protect yourself and your assets like your life depends on it —  because it does. Whether getting property insurance, financial coverage, business insurance, or trademarking your genius ideas, ensure you’ve covered all bases. It’s your shield against unseen financial catastrophes that might knock on your door. And if you aren’t sure what insurance is right for you or your business, outsource it to an advisor who’s well-versed in the know-how of the industry.

Make Friends with Tech

In this digital world, Taylor Swift has transformed herself into a brand powerhouse, harnessing the force of social media and the digital domain to amplify her voice globally. In the same manner, finance can benefit from embracing technology, too.

For small businesses, integrating cutting-edge AI developments can elevate your tools and aid in crafting client strategies that shine above the rest. Stay ahead of the curve by leveraging resources, training staff, and implementing personalized, automated systems that yield tangible results.

On a personal level, use tech-driven apps to gain insight into your finances, make investments, or establish monthly budgets. Technology goes beyond expense tracking; it empowers you with knowledge on optimizing gains and making informed financial decisions.

Diversify for Financial Stability

Starting early, Taylor Swift diversified her income streams beyond music, branching into various creative ventures. She’s done everything, from acting in the movies to creating merchandise and leading marketing campaigns on social media.

Similarly, the lesson for small businesses and individuals is clear: don’t rely solely on one source of income. Diversification is critical to financial stability, whether expanding revenue streams, refreshing your brand or adjusting your investment strategy. Businesses face unforeseen risks, but by diversifying, they can weather economic storms and unexpected crises. On a personal level, the principle remains the same. Spread your investments across different assets — mutual funds, stocks, and assets alike — and don’t put your eggs in one basket to ensure the best returns. With a diversified portfolio, you’ll easily steer clear of the turbulent waters of the financial landscape.

The Final Word

Drawing inspiration from Taylor Swift’s career and monumental success, the critical lesson is clear: proactive planning and strategic foresight are paramount. Make sound financial decisions taylor-ed to the present moment. Additionally, be prepared for unforeseen challenges and rainy days by crafting contingency plans to mitigate potential threats that may arise unexpectedly. Read more from our series on celebrity entrepreneurs. 

Want to know more? In addition to HR, benefits, recruiting, and payroll through its PeopleOps, Escalon’s Essential Business Services include FinOps (CFO services, taxes, bookkeeping, and accounting) and Risk (business insurance). Talk to an expert today.