Shaq once spent $1 million a day on luxury, but found that taxes have been cut drastically

NBA icon Shaquille O’Neal was aware of the fact that he had exhausted his $1 million salary in a day or that a portion of his income was allocated for taxes.

What happened: O’Neal revealed this financial fake in an episode of the Financial Literacy Podcast, “Get Your Leisure.” The retired basketball superstar confessed that he was already mapping his spending plans, even before the money landed in his bank account.

Upon receiving a million dollar check from his agent, O’Neal quickly splashed over a black Mercedes for $150,000. He was later convinced he would buy two more luxury cars for his parents, and jewelry and suits also appeared on his shopping list.

During the interview, O’Neal admitted that he was not informed of payroll tax deductions under the Federal Insurance Contribution Act (FICA).

“I don’t know no… Fika. They took something like $200,000,” he said.

Also Read: NBA Legend Shaq’s Walmart Shopping Spree ends with a decline in credit cards.

After running out of money, he was surprised to discover from the bank manager that he had spent his entire salary. The incident served as a wake-up call for him to educate himself on taxes to prevent similar financial failures in the future.

“I didn’t know what FICA and what income, state taxes, sales taxes were. So, ‘Okay, I didn’t want to be like the other players in these NBA players, I could teach myself,” he added during the podcast.

Why it matters: O’Neill’s story highlights the importance of financial literacy, especially for high-income earners who may face complex tax situations.

His experience serves as a reminder that understanding the fundamentals of personal finance, including tax credits, is important to avoid costly mistakes.

It also emphasizes the need for financial education to be more accessible and widespread, allowing individuals to make informed decisions about their money.

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