In many ways, celebrities live vastly different lives from the vast majority of individuals. Their net worth and daily habits are more than many people will ever dream of. But still, they have many of the same problems that the average family faces. Some of these problems are associated with keeping and taking care of money. By looking at what celebrities get right and wrong with regards to taking care of money, individuals can gain a better sense of how to handle their own financial affairs.
Try to earn side income
Celebrities are masters of the side hustle. There are dozens of different things a celebrity can do to bring in money outside of their specific specialties. Many actors, for instance, make money on the side directing or perhaps teaching an acting class. Actors and sports stars make money through endorsements. These strategies help to provide extra income for amenities and for times when their primary job is not paying well. They should be emulated by the vast majority of the public. Most people in today’s economy need a side hustle. Wood Harrisargues that these people need to have some other job that gives them fulfillment and helps them meet their obligations. A side hustle is the best way for people to combat the trend towards lower wages that has engulfed the American economy in recent years.
Spend within your means
It is possible for people to learn good and bad finance lessons from celebrities. One negative finance lesson is that individuals should always spend within their means. There are a number of stories about celebrities forced to declare bankruptcy because they were unable to meet all of their obligations and pay their debts. Celebrities have had to sell their homes and auction off their possessions. Some celebrities have even gone to jail because their bad finances have extended to the crime of tax evasions. Individuals should learn from these celebrities to always spend within their means and keep track of their purchases. Keeping track of where their money goes is essential to understanding how much money an individual can spend at any one time.
Defer to experts
One smart financial decision that many celebrities have made is the hiring of financial professionals to manage their money. The large sums of money that celebrities bring in must be wisely managed. To that end, many celebrities hire tax accountants and financial planners. They set up trusts, wills, and accounts to help out their family members with metered sums of money. Financial managers also launch stock and real estate investments on behalf of celebrities. Wood Harris believes that many individuals need to follow this advice and meet with certified financial professionals. Financial professionals will help individuals manage their own fortunes and handle their estates.
Conclusion
Individuals should not try to emulate everything that celebrities do. Many celebrities are in a context where they can get away with behavior that would be self-destructive for any other person. But celebrities are people often surrounded with smart financial professionals who guide them to wise choices with their money. Members of the public can often look to these professionals and celebrities for guidance on how and where to spend their money. Jump to top