Cardi B recently let it be known that she doesn’t think anyone’s fortune is recession-proof.
The hit rapper, who is worth more than $40 million, got into a Twitter spat with people who trolled her for tweeting, “We going through a recession…..Merry Christmas.”
“Says the rapper worth 40 million,” said the troll, using a GIF of an irritated man nodding his head and rolling his eyes.
In response to a critical tweet, the Bronx native rapper confirmed she is worth more than $40 million, but stresses she could lose everything if she mismanages her money.
Here Today, Gone Tomorrow?
“I’m worth more [than] that and guess what? If I don’t save, work and budget I could lose it too!” the rapper said. “What makes you think that no matter how much money you got you can’t lose it all if you don’t manage your money correctly. I too have bills, responsibilities and people I have to help.”
It is not unheard of for celebrities to lose their fortunes due to money mismanagement. One recent example is Kanye West, who went from billionaire status to having an estimated net worth of $400 million, after losing several business deals due to anti-Semitic comments he made, lawsuits and an IRS tax lien.
As Finurah previously reported, the rapper openly admitted he does not understand how tax evasion works. “So now I’m having — I get to actually learn how to run a company. I get to learn how to, you know, to count, really,” he said in an interview in December. He also said, “It’s like I didn’t even know where to put the money.”
Is Anything Recession-Proof?
In her tweet, Cardi B was alluding to the predicted recession for 2023 by financial analysts, which they are saying will be unlike previous recessions since WWII.
A recession is a period of time when the gross domestic product, the value of all final goods and services produced and sold, is in decline for two consecutive quarters while there is a rise in unemployment.
However, although GDP has slightly decreased, the unemployment rate in 2022 has significantly gone down, The Wall Street Journal reported.
In the past, such as the 2000-era “.com bubble” recession, recessions were caused by corporations over investing into a failed, or soon-to-be failing, asset. Businesses would lay off employees, furloughed employees would spend less on products or services, and ultimately businesses would make less of a profit from fewer paying customers.
With the exemption from the Great Recession in 2008 – caused by a housing bubble that burst – previous recessions left corporate profit margins in the single-digit percentage range.
The expected 2023 recession will be different, say experts. In 2022, corporate profit margins are in the double-digit range with businesses collectively having $4 trillion. The country is dealing with a complex post-pandemic economy, the global burdens of the war in Ukraine and inflation.
The nation has fewer workers, but the demand of services and goods is higher than before, thanks in part to the stimulus checks provided through government relief. And major tech firms have already made major job slashes.
How Cardi Built Her Fortune
When Cardi B was first added to the Celebrity Net Worth website on Jan. 12, 2016, she had a net worth of $400,000. By Feb. 9, 2017, it had jumped to $1.5 million and again to $4 million on Sept. 25, 2017. By 2022, she had a net worth of $80 million.
Her fortune was built on music sales, touring and endorsement deals.
Cardi B’s mainstream success started with her first big hit, “Bodak Yellow,” released in 2017. The official music video has been played more than 1 billion times on YouTube alone – just enough for a certified Diamond by the Recording Industry Association of America. She went to make several hit singles and features such as “No Limit,” “MotorSport” and “Finesse (Remix).”
Her first endorsement deal was her 2016 campaign with New York lingerie chain Romantic Depot. She’s landed partnerships with MAC Cosmetics, Gypsy Sport, Reebok and Pepsi. In November 2018, she debuted a clothing collection with fast fashion clothing brand Fashion Nova.
She and her husband, fellow rap artist Offset, also have been investing in real estate. In December 2019, the couple purchased a mansion in Buckhead, a suburb of Atlanta, Georgia. It was listed at $5.79 million, but they paid $5.5 million for the home.