Boom 💥 Charles Barkley says Michael Jordan gave him 1 financial tip that made him millions, and you can use it to get rich, too
Young athletes have been known to blow through their first big paycheck. Former NBA star Charles Barkley almost did, too — until Michael Jordan gave him one life-changing financial tip.
In an episode of The Steam Room podcast, Barkley says he and Jordan were about to sign endorsement deals with Nike at roughly the same time. Barkley’s deal was originally for $3 million, but before he signed on the dotted line, Jordan asked him one simple question: “Hey man, why you need all that money?”
The conversation led Barkley to make a decision that could have cost him millions, but instead made him a fortune. Here’s the game-changing money move that he learned from Jordan, and how you can apply it to your own wealth-building strategy.
Equity over cash
Although $3 million was no small sum, Jordan recognized that with the right strategy, Barkley could turn it into something much bigger. He told Barkley to renegotiate his contract and take only $1 million in cash and the rest in Nike stock options.
After a brief discussion with his team, Barkley took the advice and set himself up for an immense windfall down the road. “I actually made probably 10 times that amount of money and I’m still with Nike to this day,” Barkley proudly proclaimed.
Barkley didn’t mention if he still holds his Nike stake, but the stock is up a jaw-dropping 4,000% since his signature basketball sneaker, the Nike Air Force Max CB, debuted in 1994. His story highlights how gaining equity can be far more lucrative than a quick cash payout, especially when it’s tied to a strong, growing business.
Charles Barkley says Michael Jordan gave him 1 golden financial tip in his early NBA days that made him millions — here is the big money move and how you can use it to get rich, too
Here’s how you can apply this lesson to your investment strategy.
Aiming for long-term growth
Like Jordan and Barkley at the dawn of their respective careers, young investors should be more focused on capital appreciation and growth rather than immediate cash flow.
This is why some financial advisors recommend using the Rule of 100 for age-appropriate asset allocation. To use this rule, subtract your age from 100 and the remainder represents the percentage of your portfolio that you should invest in stocks. So, if you’re 30 years old, you would set aside 70% of your portfolio for stocks while 30% can be allocated to safe havens such as bonds.
Another way to prioritize growth over cash is to set aside a portion of your paycheck to invest in stocks every month. As of January, 2025, the personal savings rate is 4.6%, according to the Federal Reserve. By saving a greater portion of your income — say 15% — you could reach your financial goals faster.
Young investors with an appetite for risk and the patience to wait for compounding growth can also focus on growth stocks over dividend-paying blue chip stocks.
Tobacco giant Altria Group, for instance, pays a hefty 7.3% dividend yield but the stock has appreciated only 34% over the past five years. By comparison, Nvidia, which doesn’t pay a dividend and reinvests all its cash flow to expand its business, has appreciated 1,563% over the same five-year period.
When you’re young, much of your career is still ahead of you. Like Barkley after his first Nike contract, you may have decades of income to look forward to, which gives you room to invest and look at the bigger picture. Prioritizing long-term wealth growth over quick cash can set you up for a far richer future.
