How One Artist Blew Through 70 Million And Is Now Broke

[Silverhawk851]

Here is another wild Sidewalker story.
Imagine if this dude had even just put 30 million in a 5% return investment,
he would have 125K/month to blow, passively.

Guess money don't buy discipline.

----------------------------------------------------------------------------------

Article :

Former millionaire pop producer has only $100 in cash
http://www.aux.tv/2015/06/former-millionaire-pop-producer-has-only-100-in-cash/


Do you have more than $100 cash to your name? Congrats! You’re richer than Scott Storch.

The former production titan has filed for bankruptcy after mowing (and snorting) through a $70 million fortune with a good chunk of that dough spent on drugs, cars and other costly interests. If you don’t know Storch’s name, you probably know some of the mega-famous acts he worked with back in the 2000s like Beyoncé, Chris Brown and Christina Aguilera. Heck, Storch and Xtina even had a public falling out that included the venom laced diss “F.U.S.S.” (a.k.a. “F*ck You Scott Storch”) popping up on Christina Aguilera’s 2006 album Back to Basics.

Tales of Storch’s money woes are nothing new. In 2009, the producer’s manager Derek Jackson told MTV News that his client somehow managed to burn through $30 million in just six months.


“The cost of the drug didn’t effect my life,” noted Storch. “It was the poor decisions I made, that were so poor financially, that caused me to go into this situation where I was forced to change my lifestyle… forced to change a lot of things. [I had] 15 to 20 cars at all times… That’s not smart. I would take one of 15 half-million-dollar cars I owned and go to the mall and spend that much money. Stupid, stupid stuff. It’s like it didn’t make a difference. They were ego investments. I would have been great with three or four cars! I didn’t need a 117-foot boat.”

In 2015, Storch has $3,600 in assets to his name. There’s the $100 we mentioned, plus a $3000 watch and $500 in clothes.

If only you could a price on his value as a cautionary tale.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[AG356]

“Intelligence solves problems and produces money. Money without financial intelligence is money soon gone.”

 

[beatgoezon]

Darn that's pretty sad, add to the fact that how can you blow all that money... On blow? I can't even imagine what $5,000,000 worth of drugs even looks like, let alone how it could all be consumed by 1 (a few) people...

 

[AgainstAllOdds]

Darn that's pretty sad, add to the fact that how can you blow all that money... On blow? I can't even imagine what $5,000,000 worth of drugs even looks like, let alone how it could all be consumed by 1 (a few) people...

I was interested in seeing how drastically a drug addiction affects your finances directly, so I did some math.

Let's start here:

"Some doctors estimate that 1.2 grams of cocaine, when used orally, and 750-800 milligrams, when used intravenously or by inhaling, is fatal. It is unknown how much cocaine is fatal when sniffed. (Source: Cocaine Vraagbaak, Federatie van Instellingen voor Alcohol en Drugs, 1986). A user sniffs 0.1-0.2 grams of cocaine, i.e., 2-4 lines a night."

Using this research, lets assume that a cocaine addict uses the max (1.2 grams) every single day. They can't use more because it will kill them.

Then, let's assume that he purchases 5x that to accommodate for his entourage and "cocaine parties". That means he purchases 6 grams of cocaine a day.

Using a quick internet search, the conclusion is that a gram of coke will cost you $60 to $80. Obviously a lot less if you order in bulk, but for our purposes we'll assume that the individual pays $80 per gram.

Therefore, the daily spend on cocaine is:

6 grams x $80 = $480

Annually, that's $175,200.

Assuming a 60-year life span as an addict (let's be honest, you won't live past 80 with a coke addiction), that means that you'll need $10.152 million for your cocaine addition until you die. Using a 3% interest rate, and annual annuities, you need to set aside $4,848,758.75 to be set for life. This is assuming that you're consuming the max before overdosing, and buying for 4 other people that are near overdosing everyday.

If you're buying an amount that the average addict sniffs (0.2 grams), and ignoring your entourage, then your expenses are as follows:

0.2 grams x $80 = $16.

Therefore: $16 / $480 = 1/30th.

1/30th x $4,848,758.75 = $161,625 to be set for life.


Think about that. An I-Banker whose life goal is to be a cocaine addict can do that on less than 1 year's savings!



So in conclusion: It's not the drug expense that makes you go broke. It's the mindset that makes you do drugs, and inevitably the altered decision making. Those two elements combined create a recipe for disaster.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Silverhawk851]

@AgainstAllOdds

 

[beatgoezon]

@AgainstAllOdds

Wow That really opens up a new perspective to this whole drug addiction problem, thanks for taking the time out to give a visual of it All I can say after reading that is that I think you're spot on, it's not the drug that caused him to go broke, it's the mindset of instant gratification!

 

[Mattie]

I'm sure they left out what he spent it on. Yes, I think the world can be very tempting, an easy fall if you're heads in the clouds, and you're having a good time, and say "What the heck, I"ll be rich forever."

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Boo Blizzi]

This dude was MURDERING THE GAME!!! Everybody wanted his beats. He was like Dre and Timbo getting like 200-300k for 1 track.
How in the F*ck?
He got royalties coming in from all those hits unless he sold them for bread upfront.
I can understand not being able to support the lifestyle he was living after you're not hot anymore... dude had a sick a$$ crib in Miami and some next level shit in LA with a gazillion high end cars at both cribs...lol
But to only have $3600 left?
He must have burned a lot of bridges and major artist were like dont play any song I did with Scott Storch on the radio...he cant eat no more!

 

[obrian]

i got this out of a kendrick lamar's song where dr dre was talking about money this sums is all up what he said:
[ Dr. Dre ]
Yo, what's up? It's Dre
Remember the first time you came out to the house?
You said you wanted a spot like mine
But remember, anybody can get it
The hard part is keepin' it, motherfcker

so anybody can get it but the hardest part is keeping it, even the billionaire owner of alibaba jack ma said that he felt happier when he was working for about $10 an hour because he never had so much responsibilities when it came to managing money.you got to be very responsible, but i guess this guy just never got the concept maybe he was looking at the short term gain of partying and have fun instead of investing in some assets for the future which could've gain value overtime. maybe he was buying up all these liabilities in his life and not too many assets but overall maybe he just wasn't financially literate. he was logically rich back then but had a poor mindset and your inner world reflect your outer world, so although he had alot of money he wasn't "FINANCIALLY"smart enough to keep it.

 

[obrian]

I was interested in seeing how drastically a drug addiction affects your finances directly, so I did some math.

Let's start here:

"Some doctors estimate that 1.2 grams of cocaine, when used orally, and 750-800 milligrams, when used intravenously or by inhaling, is fatal. It is unknown how much cocaine is fatal when sniffed. (Source: Cocaine Vraagbaak, Federatie van Instellingen voor Alcohol en Drugs, 1986). A user sniffs 0.1-0.2 grams of cocaine, i.e., 2-4 lines a night."

Using this research, lets assume that a cocaine addict uses the max (1.2 grams) every single day. They can't use more because it will kill them.

Then, let's assume that he purchases 5x that to accommodate for his entourage and "cocaine parties". That means he purchases 6 grams of cocaine a day.

Using a quick internet search, the conclusion is that a gram of coke will cost you $60 to $80. Obviously a lot less if you order in bulk, but for our purposes we'll assume that the individual pays $80 per gram.

Therefore, the daily spend on cocaine is:

6 grams x $80 = $480

Annually, that's $175,200.

Assuming a 60-year life span as an addict (let's be honest, you won't live past 80 with a coke addiction), that means that you'll need $10.152 million for your cocaine addition until you die. Using a 3% interest rate, and annual annuities, you need to set aside $4,848,758.75 to be set for life. This is assuming that you're consuming the max before overdosing, and buying for 4 other people that are near overdosing everyday.

If you're buying an amount that the average addict sniffs (0.2 grams), and ignoring your entourage, then your expenses are as follows:

0.2 grams x $80 = $16.

Therefore: $16 / $480 = 1/30th.

1/30th x $4,848,758.75 = $161,625 to be set for life.


Think about that. An I-Banker whose life goal is to be a cocaine addict can do that on less than 1 year's savings!



So in conclusion: It's not the drug expense that makes you go broke. It's the mindset that makes you do drugs, and inevitably the altered decision making. Those two elements combined create a recipe for disaster.

that's true man.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Red]

It was the poor decisions I made

That’s not smart.

Stupid, stupid stuff.

They were ego investments.

Hopefully he's had a true revelation of what caused his financial demise & can build himself back up. He did it once, he can probably do it again. He still has the talent that built the original fortune & hopefully, after laying the ego aside, he's a much better person to work with than before.

 

[M&A]

Its a pretty popular story I thought he got back on his feet looks ok in the 2nd video