Financial Lessons And Missteps You Can Learn From Billy Joel

I recently watched the Billy Joel documentary called And So It Goes. As a big fan, I really enjoyed the music and learning more about his fascinating life. One of the key stories was that he was taken advantage of by his managers and he has lost a lot of money over the years.

As a matter of trust, I went searching for the truth in his lyrics and found that there are many hints about his life and personality that, unfortunately, led to some poor financial traits . These core themes provide some clues as to why along with his tremendous talent, financial skills haven’t been a strength. Here are a few themes.

Big bets and bad habits

I’ve lived long enough to have learned
The closer to the fire, the more you get burned
But that won’t happen to us
‘Cause it’s always been a matter of trust
— A Matter of Trust/1986

I’ve made fortunes
Spent them fast enough
— Baby Grand/1986

But you know in my own heart
I’m a big man on Mulberry Street
I play the whole part
I leave a big tip with every receipt
— Big Man on Mulberry Street/1986

Well, you went uptown riding in your limousine
With your fine Park Avenue clothes
You had a Dom Pérignon in your hand
And a spoon up your nose
— Big Shot/1978

Lack of patience/want it all now

Darling, I don’t know why
I go to extremes
Too high or too low
There ain’t no in-betweens
— I Go to Extremes/1989

Where’s the fire, w hat’s the hurry about
You’d better cool it off b efore you burn it out
— Vienna/1977

I’ve gotta get it right the first time
That’s the main thing
I can’t afford to let it pass
— Get it Right the First Time/1977

When you’re counting on a killing
Always count me in
Talk me into losin’ j ust as long as I can win
— Easy Money/1983

Divorce is a killer of financial plans

I don’t want you to tell me it’s time to come home
I don’t care what you say anymore, this is my life
Go ahead with your own life and leave me alone
— My Life/1978

I hope it doesn’t take the rest of my life
Until I find what it is that I’ve been looking for
— The River of Dreams/1993

They lived for a while in a very nice style
But it’s always the same in the end
They got a divorce as a matter of course
And they parted the closest of friends
— Scenes from an Italian Restaurant/1977

“She asked me to stay, but I’d done my navigation
I drove her away, but I should have known
To stay tied up at home
— Storm Front/1989

Despite living a life of extremes, getting taken advantage of financially and divorcing three times, Joel still has a great deal of wealth.

On the positive side, he is a brilliant musician who is able to reach a large audience. He is committed to his craft, and he is resilient and hard-working. More than a couple of times he had to go back to the grindstone and make a new album or do another huge tour in order to pay the bills.

If we are going to take some financial lessons from his life, should you keep the faith and stay “just the way you are” or is this the time for a new “state of mind”? There are some lessons for all of us here.

One of the biggest is that your career is likely the main driver of your wealth. Invest in it, be committed to it and put in the hard work. It will likely get you through a lot of other ups and downs along the way that you may have less control over.

As a corollary to that, do your best to hire experts in the areas that are not your core strength or interest. The challenge is to find people you can trust, but also to put some time and effort into checking in on how they are doing.

There are definitely characteristics that can work against you and your finances. Being calm, patient, analytical, a little conservative and stable are likely personality traits that will help you financially over the long run.

However, if your personality has none of these things, being self-aware is very important. Maybe certain harmful traits can be minimized through therapy, and you can also try to stay away from the things that will cause damage.

• How to financially prepare for every stage of life
• How to find a financial adviser who is right for you

Of course, getting divorced three times is definitely going to be create a lot of storm fronts, including financially. I have no emotional advice on this one, but if you are entering a marriage when you already have some meaningful wealth, be certain to put in place a prenuptial agreement that will provide some financial protection in the case of separation or divorce.

Remember, it is never too late to learn or make changes. As Joel sings, “the night is still young.”

Ted Rechtshaffen, MBA, CFP, CIM, is president, portfolio manager and financial planner at TriDelta Private Wealth, a boutique wealth management firm focusing on investment counselling and high-net-worth financial planning. You can contact him through www.tridelta.ca.