America worships celebrity. As a society, we tend to view celebrities as having better judgment, as being more ethical, more attractive and more worthy of attention that average people.
If you search for financial information on the internet, you’ll come across some interesting links on the relating to celebrities and their financial lives. It seems that if you take a closer look at the finances of many celebrities, some have done incredibly well, others have failed and filed bankruptcy.
While its undoubtedly easier to become wealthy if one is famous, it would seem that process of making money shouldn’t matter based one’s celebrity status (e.g. the stock market doesn’t care who ownes shares, its about supply and demand). I’ve given the matter some thought, and although I’ve by no means thoroughly considered all angles, its seems that regardless of ones celebrity, some principles for building wealth still apply:
1) Living below one’s means
2) Building and maintaining a business
3) Making sound and well reasoned investments
For example, MC Hammer went bankrupt due to the cost of maintaining a 40 person entourage. He seemed to have spend more than he was making. Oprah has grown from being a successful actress to being one of America’s most powerful women through her publishing and multimedia business. Finally, Toby McGuire got taken to the tune of $187,000 because he failed to research his investment advisor. Something tells me he didn’t look into what products he was buying.
If you’d like to read more, click here for Bankrate.com’s series on celebrity financial profiles. Its got some useful and insightful articles.
Otherwise, have a great day and happy web surfing!
Best,
James
It's easy for ultra-rich celebrities to spend more than they make because they get in the mindset that they can afford anythign and everything (and it is true they can afford most things they want). But when they start spending too much or their income dries up, then they have to face the inevitable financial realities.
I think your 3 strategies are very accurate. Many wealthy folks are business owners and wise stewards of what they make. Anyone following these three can make headway with their financial life.
Money management is necessary no matter how rich you are. Interesting examples.