First of all, congratulations are in order to rapper Kendrick Lamar’s sister for graduating school. To accomplish such an achievement deserves to be acknowledged first and foremost. Second, the Compton rapper celebrated his sister’s graduation by buying her a brand new Toyota sedan as a celebratory gift. The rapper caught heat from many social media users, stating the rapper could have given his sister a much “nicer” car.
Many people worry about why others spend money the way they spend it. We associate top dollar spenders with high earnings and expect the rich and famous to automatically purchase expensive houses and cars but that’s not always the case.
Warren Buffet does not stay in a mansion but in his modest Omaha, NE home he bought in 1958 for $31,500. Yes that’s right the multi-billionaire lives as humbly as he did decades ago. So why bother Kendrick? This is the same rapper that bought his own home in Eastvale, just outside of Los Angeles, for $500,000…HIS own home. Why would someone spend more money on other people than themselves, with no return on investment? More importantly, why are we judging someone who is being fiscally responsible so that his children’s children can benefit and further their financial education?
What can we learn from both Warren and Kendrick? Never spend more than you make and can continuously upkeep. Taxes associate with this gift is part of the upkeep. Gifts in excess of $14,000 for the tax year of 2016 come with taxes that you have to report at the end of the year. We will never know if Kendrick’s sister will pay the taxes next year for this “gift” and guess what, it’s not our business. Kendrick’s sister may not be in a position at this time to keep up with the maintenance of a $100,000 car. Furthermore, I’m sure Kendrick’s sister loves the gesture, no matter the type of car. Also it’s time to worry about our own spending than to judge how “nice” other people’s gifts that are given.