A celebrities life is not as glamorous as it looks. They lead expensive lifestyles, they have to drop serious cash to look that great (pssst, not everything they wear is free!), and project-work means they’re never certain about how much they’ll earn or when the next pay cheque will come in. To top it all, most of them are really bad at managing their money. Celebrities may climb to success at top speeds, but they plummet to debt and bankruptcy even faster.
So when I read about the ones who have their financial shit together, I make it a point to learn.
#1. Zoey Deschanel: Who taught me to save before spending
When Zoey got divorced in 2012, she was asked to disclose her bank history. Turns out, she ran a very disciplined monthly budget! She saved 76% of her income, spending only $22,250 of her $95,000 monthly salary. She has approximately $1.58 million in her bank account, and more than that ($1.64 million) invested in stocks and bonds, which give keep increasing her net-worth. That’s not all. None of her credit cards have any debt – an amazing feat for an American since “maxed out credit cards” are so common! – and she’s even set credit limits of up to $2000 on them.
#2. Beyonce Knowles: Who taught me that out-flow is just as important as in-flow
Beyonce’s been named ‘Highest Paid Woman of the Year’ and her $87 million income has never been topped. Ever. She’s deliberately spread out her sources of income – from her music to merchandise, from films to her lines of fashion. But instead of keeping all this in a Savings Account, which isn’t really a place to grow your money, she invests it in small businesses and real estate. The incredible part is that she admits in multiple interviews that she lives life simply. She keeps a close eye on her expenses, trying to cut out economic wastage wherever possible, saving herself millions!
#3. Jennifer Lawrence: Who taught me to not spend stupidly because of peer pressure
The ‘Hunger Games’ star whose net worth is $25 million is surprisingly humble when it comes to her lifestyle, claiming that she even gets “stressed out” when it comes to hiring things like valet services. Like her colleagues in the entertainment industry, she doesn’t go crazy with her money just because she has it. Instead she still looks for discounts, uses coupons, looks for buy-one-get-one-free deals and doesn’t spend on hotel mini-bars. In fact, her heads screwed on so well that she was named ‘Gen Y’s Top Personal Finance Role Model of 2013’ by GoBankingRates.com.
#4. Priyanka Chopra: Who taught me to stay on the ball, wherever I am
Priyanka Chopra admits that it wasn’t easy to establish herself two completely different markets – India and the U.S. Besides focusing on her hectic career, she made it a point to educate herself about the U.S. tax system and immigration law. Based on this, she got financial advice on how to structure and invest her income, making sure nothing went wrong! In both countries, she divvies her money between what she wants to spend, save, invest and give back to humanity through her philanthropy.
#5. The Kapoor sisters: Who taught me to be “smart” about my investments
High Net-worth Individuals (HNIs) have been finding ways to avoid paying taxes on their 8-digit salaries for years! One such way that’s become popular among celebrities like the Kapoor sisters, Amir Khan and Akshay Kumar are Government “bonds”. This is basically when the Government assures you a steady stream of income, over a long period of time (usually 15-20 years), as interest on money borrowed from you. When the bond matures, the Government returns the borrowed amount. Both the interest the celebrities receive over the years, and the principal sum given, are completely tax free!
If these busy women can manage their money, so can you!
Is there any financially savvy celebrity you think we should mention? Tell us in the comments below.