Ah, the lifestyles of the rich and famous. It seems that for some of the most wealthy celebrities in the world a helicopter ride to the top of a mountain or a sunset on a beautiful yacht is simply a matter of which buttons to press on your speed dial. Rock stars are notorious for their hard partying lifestyle that may or may not involve breaking hotel walls to later be charged to an “accountant”.
So what about all those financial transactions that go on behind closed doors? Celebrities surely have dedicated teams of people who carefully manage their finances to allow them to grow their net worth while enjoying the fruits of their labor. The most wealthy of celebrities are often very finely embedded within their financial team to ensure the proper decisions are being made and for the right reasons.
Even the highest earning celebrity can be handicapped by excessive debt. Future wages can be garnished almost indefinitely or their entire media empire could collapse because of debt. The principal itself is not usually what is out of control, it is the interest that becomes the issue over time. To fight this, some celebrities choose to consolidate all outstanding debts into one single loan that they have to pay back. Brian Talbot from Debt Consolidation Loans (https://www.debtconsolidationloans.uk.com/) explains that debt consolidation loans have lower interest and lower monthly payments than individual loans. So, celebrities with many different interests make managing their finances much simpler by consolidating debt.
Keep Track Of Expenses
Financially risky decisions come often, especially when dealing with the sums of money that celebrities frequently do. A few unsaid words in a meeting could mean thousands left off a contract or a rowdy party could end up being thousands in repair & cleaning fees. So when it comes to the money that you do have, always have a finger on the pulse of your cash flow. Celebrities think towards the future, instead of considering if they can afford purchases on a case by case basis they appraise how sustainable their lifestyle will be based on spending habits, adjusting accordingly as needed.
Always Get A Deal
There’s no sense in walking into negotiations and always taking the first thing you’re offered. Whether it be on new clothing or keeping their car collection in tip-top shape, celebrities find it important to live frugally. This is different from being stingy or cheap in that necessities and some luxuries will be inevitably purchased with there’s a massive focus on making sure that no money is wasted in each transaction. Savings from this practice compound quickly, effectively paying for future purchases.
Always Have A Parachute
Falling from grace is perhaps one of the worst things that can happen to any celebrity. For some, one day the phone won’t stop ringing and then the next nobody wants to touch them with a ten-foot pole. When this happens, their revenue stream dries up and it’s all about what they managed to save beforehand. Building a parachute of savings with regular deposits into a savings account means that no one major event will mean they’re penniless and on the street. The parachute is effective for unexpected illness/injury, lack of work, and other things like legal costs & taxes.
Separate Need From Want
Just because you have the money to dress head to toe in designer clothing, it doesn’t necessarily mean you should. The same applies to expensive cars that will require constant, high-end upkeep. This kind of spending can quickly become a white elephant in that your investment is too costly to continue yet not quite costly enough to get rid of the perceived value it brings. The scale of their purchases may be higher, but ultimately the percentages they spend on certain facets of their lives is not incredibly different from those of the average person.
Understand You Can’t Help Everyone
Some celebrities instinctively begin spending their newfound riches helping out friends and family so they may all have more fulfilling lives. A pitfall of this kind of behaviour is that sometimes it is more important to worry about yourself than it is to worry about others. Rich celebrities often have people trying to inch their way into their life for a little bit of “spare cash”, if they gave in to these frequent requests they’d be broke in no time. The lesson here is that even if you make bank, never allow yourself to be made into a bank by others.
They Keep Their Cool
If a celebrity suddenly doubles their yearly income or makes some prudent career choices, the ones that stay rich don’t immediately change their spending habits to match their new level of income. The new money hasn’t proved itself consistent & reliable yet, it is important to not get too comfortable too quickly with regards to any unexpected windfalls. Debts will be paid, their outstanding commitments will be handled, then they figure out how they will spend their new money.
Much of how celebrities retain their fortunes is connected to how they prudently reduce money wastage to most effectively use their wealth. When you’re dealing on the scale of a major celebrity, even picking up 1% of waste on a consistent basis can translate into more money than most people make in a year. Should their finances become too difficult to manage they will seek outside help and constantly check-in to make sure everything is going according to plan. Nobody wants to be on “Where Are They Now?” living underneath a bridge, that’s for certain. These tips are also great for the average person, just applied to a more familiar standard of living. Don’t waste, always think about the future, and never let yourself be in a position where you can be leveraged by others financially. Live for the lifestyle you want, not the one you have.