Some of you may have long held the assumption that celebrity life will not be devoid of luxury. As well-paid centres of public attention, they spend on big houses, shiny cars, and the latest fashion from top to bottom.
However, this assumption does not apply to some celebrities. Some of them even prefer to put into practice the financial knowledge they have acquired rather than spend a million dollars in 30 minutes.
In this post, we will look at how the rich and famous manage their money. We will also expose the frugal practices they employ that have contributed to their financial success.
After all, these celebrity financial lessons could be a guiding light in your financial journey, especially if you are thinking about becoming or are already an entrepreneur or investor.
Be ready to get wiped away
Celebrities at the top of their popularity may have a lot of checks in line. Feeling like there’s a lot of money on the horizon because the job offers never end will make celebrities refrain from considering using their income as a pleasure that ‘pays off hard work.’
Kerry Washington, one of the top actresses in Hollywood, revealed in an interview for 2020 that the shine may fade sometimes. As an actress herself and surrounded by similar professional people, she revealed that many famous individuals are not rich.
She even encourages ‘mediocre’ celebrities to focus on reality and not waste money in anticipation of one day becoming marginalised celebrities. “For all of the Oprahs and people with a lot of money, most of us are one or two checks away from not having enough money to pay for everything.”
Have two streams of income: investment
Many celebrities have adopted and prioritised long-term investments that focus on their assets that appreciate in value.
In an interview with CNBC, comedian Jay Leno stated that he is required to have two streams of income to have a consistent cash flow. He revealed that, aside from being a comedian, he opened his own business in the dealership industry.
He revealed he has never touched the money he earned from The Tonight Show (lately, it was reported about $30 million per year); he has never touched it. Instead, he invested it. Even though the income from the 150 comedy gigs a year produced a lot, he would spend the money from the car dealership.
Even a well-known Hollywood celebrity, Ashton Kutcher, said that anyone wishing to invest in or start their own business should develop a solid plan rather than just a concept. He was proven correct when he was able to turn a $30 million fund into a $250 million fund by investing in well-profitable firms such as Skype, Uber, Airbnb, and Spotify.
Take advantage of price-cutting opportunities
If you still think that coupons can only be used by ordinary people, you just assumed wrong. Actress Kristen Bell confessed that she has been relying on the power of a coupon. She started this way before she starred in her phenomenal movie, Queenpins.
In an interview with Conan O’Brien in 2012, she depended on a 20% coupon whenever she wanted to shop at Bed Bath & Beyond, a home furniture brand. If the coupon goes off, she will never shop. She even confessed that she always shops exclusively with coupons, which probably applies to every shop that she knows that offers coupons or discounts.
The way Kristen Bell’s shopping trick showed that she knew clearly how she could emphasise the opportunity of saving for impulsive buying. By her unwillingness to shop without a price chopper, she has set her clear financial goals.
Always thirsty to learn
Being fortune tigers, celebrities understand their resilience, find a way to bounce back from setbacks, and try to learn valuable lessons.
Mark Cuban, a television personality who later became a well-known businessman and investor, detailed his financial strategy for amassing a net worth of 4.6 billion (according to Forbes).
He stated that he is in his position now because he is constantly learning. And he believes that what he has learned will boost his own value in the workplace.
He has seen people who don’t want to make a mistake because they’re so unhappy that they can’t wait to go out, and they don’t know that they can learn more from jobs they don’t enjoy than from positions they do like. Those awful events, nevertheless, could be the source of ambitions for management or to establish and conceptualise a company.
Pay your obligations; don’t put everything in one basket
Most ordinary people prioritise saving and purchasing basic essentials. However, this celebrity has always advocated the second primary expense in adulthood that must be part of her financial plan: taxes.
Queen Latifah, an award-winning rapper and actress, stated that she considers herself fortunate to have received money and investments from her mother. And even before entering Hollywood, she was already an entrepreneur who instilled the importance of a good financial strategy in her mind. She learned a valuable lesson when she received her first paycheck: save, pay your obligations, such as taxes, and don’t put all of your eggs in one basket.
Conclusion: Take advantage of the ‘to learn’ part of it
The lessons from the rich and famous can help you make better decisions, whether you are considering investments, creating a business, or simply managing your budget. We hope you will agree that there is no reason not to appreciate the value of financial education if you want your financial journey to be successful.
Lastly, if you are seeking more personal financial advice or even financial assistance, you can consider going to a registered money lender to have them help you navigate your financial life confidently and responsibly.