I always wondered how celebrities look like a million bucks every time they take 2 steps into their Escalade and 2 steps back home.
Not to mention the hefty transportation and security costs per week can easily add up to more than the average Americanâs total mortgage payment per year.
In addition to the immense pressure from the media and paparazzi popping out on every corner of their eye, they have constant internal anxiety to look professional, put together, and happy every moment they get some fresh air.
Being a celebrity is no easy task.
Jim Carry puts it best:
âI hope everyone could get rich and famous and will have everything they ever dreamed of, so they will know that itâs not the answer.â
This is the type of philosophy I preach on here. Money isnât the solution to our problems nor will it buy you lasting happiness, peace, mental sanity, health or love. In fact .1% of 1st world problems start to occur with more power, a rich lifestyle, no privacy, and fame.
Perception isnât reality. More people with more are more miserable than you think.
Open Book
The main problem of being rich starts to occur when the entire world knows what you are worth. They start becoming jealous of you and ultimately attempt to take advantage of you putting yourself at risk. Although we may not be celebrities, for our own good, it is important to never show off, never reveal your true net worth and better yet donât say mention it at all, and always live below your means as much as possible.
Why?
As tempted as you may be to disguise your wealth after more zeros hit your bank account from that bonus last week, your reputation can be ruined by revealing too much. People will start to resent you and less opportunities may be presented since people assume you are well-off and can retire at the spot.
Although Iâm not qualified to give advice to celebrities to protect their identity, Iâm almost certain they have their assistants, security guards, and management team telling them what and what not to post. Majority of us tend to reveal too much on social media and we forget how much it can haunt us in the real world. By simply advertising your birthday or your partner can get into dangerous territory. Unfortunately thereâs always some bad actor out there. Itâs always safer to reveal less than spill out more, something celebrities have a hard time dealing with as they strive to be vulnerable and private at the same time.
That is one of many reasons why Iâm MIA on social media.
No pun intended.
The more vulnerable and open someone is, the more their life is at risk. But thatâs part of being a celebrity and something they have to balance day in and out.
More money and fame puts your safety, relationships, privacy, passions, and personality at risk since you need to spend more time and energy to secure it all or make sure no one is accusing you of any false wrongdoing. I canât imagine how A-list celebrities sleep at night.
After Kim Kardashian got assaulted and robbed in Paris a few years ago, from then on she doesnât keep any of her valuables such as jewelry, excess cash as a billionaire, antiques or any valuables with her in her main property, only the essentials like food, clothing, and her kids.
Plus inside her empty mansion or shall I say museum, a full armed crew is guarding her house at all times. Itâs like living in a White House prison but have to pay for it all since you arenât supported by taxes and instead just famous.
There are a lot of random annoying costs that celebrities have to account for.
From flying private to valet to front row seats at a game, some of the most famous people in the world have no other choice than to pay top-dollar for top amenities. Tom Hanks canât just fly commercial and disturb the crew or have Justin Bieber chill in the back row of a sports match and not become the center of attention around crazy fans.
Percetion isnât reality folks. Learn it earlier than later. The grass isnât always greener on the other side.
If it seems too good to be true, it usually is.
Plus, letâs not forget that thereâs absolutely nothing wrong with living a low-key grounded simple life where you look up to the people you know, not strangers who attend the Oscars.
They have no more happiness, fulfillment, and success than you do. Itâs just amplified on a different level. You can be a celebrity at heart if your heart really desired.
Bonus, you appreciate more, worry less, and save more as an above-average non-celebrity. Itâs a win-win situation.
The Celebrity Secret
Out of the celebrities, icons, media moguls, leaders, politicians, change makers, etc. you look up to, majority of them are probably not as wealthy as you may think.
Especially since most didnât have any formal education and just built their careers around a few lucky breaks, they have nothing to fall back on which is arguably the worst mistake of all.
Itâs like graduating from an Ivy League and going into entrepreneur mode. Nothing is riskier than that.
Sure you can go to Google and type in a name and net worth next to your idol and a proposed, guesstimate will come up but it doesnât mean itâs accurate, not been spent or updated daily.
A degree is one of the few things that can never be taken away from you. A little skit or appearance on SNL can disappear if you havenât done anything else or tarnished a relationship with a director. The world is a smaller place than you think. People talk.
Celebrities have to deal with the endless spiral of criticism, hate, rejection, and the constant answer of âno.â Not everyone can play top performing tennis or impersonate Marlyn Monroe while not getting nervous with Brad Pitt on screen. There are only limited spots to fill for a limited time and long-term celebrities have one of a kind stamina.
With no stability or 401(k) in sight, it is dangerous financially and mentally especially since actors in particular spend more time searching and preparing for a role than having it. Yes the lump sum for any actor at any age can be limitless and easily 50x more than a first-year salary in most industries but it rarely lasts.
These are one of the few things we take for granted as a society. We donât appreciate what we have and end up living on social media comparing ourselves. We must weigh the pros and cons before assuming someone has it better.
Taking a Step Back
If we canât live like celebrities, not that you would really want to, we can learn from them and their savvy business strategies. Something no finance class will teach you. Their spending habits on the other end are hard to justify and find since majority of the time whenever they step out in public or post on Insta, they are advertising something made for them so itâs hard to gauge what theyâve spent on or not. Or they may have a business like regular folks where they charge all their expenses towards it! No one knows you charged that Range Rover or booked that vacation to meet your clients towards your rental property as a business expense. Regular folks like myself do it all the time to save on business taxes.
People look better off than they really are and the strategies they use to promote brands and themselves can be applied in the same way in our lives.
Instead of paying for a Nike wardrobe themselves, they ask Nike for it in exchange for publicity and more customers through their image. They are getting paid to show it off and we somehow arenât convinced.
To be and stay wealthy, you need to have your thinking cap on 24/7. Immersed in the world of partnerships and business, always devising strategies on how to save less, and promote a brand more for continuous opportunities down the road. They are arguably working more than a 9â5 employee since their hours are indefinite and sporadic. They consider things we never think about as non-celebrities such as planning on when the paparazzi will notice them wearing those joggers or those brand name sneakers to attract more customers to their paid partnershipâs site.
Similarly to careers and marriage, when you get your luck break, everything starts accelerating from there. If you havenât found your pot of gold yet, drill down into something you are good at, thereâs always something I guarantee it, and adopt the spirit of unwavering commitment and dedication which will eventually lead to more luck.
More action = more luck.
Turn on the default setting of always producing more.
More business partners, opportunities, ventures, paid sponsorships, Met Gala invitations, fake friends, and lovers come rushing in. Itâs easier said than done but once celebrities find a hidden opportunity and keep growing their luck through mostly meeting new people, thereâs no stopping until they stop it. Itâs unfortunate how often that happens.
They are extremely hard working in that regard constantly fishing for golden fish before they start seeing wrinkles, getting caught for something or for some reason their name doesnât resonate with the public anymore.
From Broadway to sports, it is very unpredictable who will last in these areas. Tom Brady and Ryan Seacrest are one of the handful of outliers able to last this long with multiple gigs and continue to be popular. Audiences get tired of the same people in front of their screens. They want fresh blood and new style, something celebrities cannot control. Itâs a very competitive cut throat world out there and is made to look glamorous from the outside.
Behind the Scenes
No wonder most celebrities arenât happy and find a new lover the next day they just divorced with their ex! They are enticed and persuaded by the wrong things in their own bubble they cannot pop.
Most logical people wouldnât use their money to fly to space and instead volunteer or donate it as the top 10% tend to do with their discretionary income. But past a certain net worth, roughly a few billion, you become disillusioned and in your own world or planet in this case fighting in the battle of rockets in space leading people to criticize your every move.
Your relationships start to fade, you donât know what to do with yourself, and refuse to pay your fair share in taxes anymore! Since media moguls and Fortune 400 names are always publicized, people form stronger opinions for or against them since CNN wouldnât bother discussing an ordinary citizenâs efforts and instead focus on what would drive the most profit which is through polarization, controversy, debate and arguments. Polarization breeds profits, a.k.a Facebookâs goal.
The Real Deal
So what can we learn from celebrities besides their perseverance, stamina, grit, determination, patience, vision, massive confidence, and unwavering commitment in what theyâve built?
Apparently, itâs all hidden in their budgets. Sorta.
Now at this point Iâm not sure how accurate anything is online since once again, celebrities are the last people on earth that will disclose anything, let alone their personal spending habits, monthly budget or portfolio allocation but according to trusted sources, CNBC and Forbes, we can get a pretty good picture on what they do and surprisingly learn a thing or two from them as well!
Celebrities That Are In Control
Itâs extremely rare that new up and coming stars without proper education last long since majority of them spend it all and become disillusioned. This is most common in the NFL as young athletes are recruited straight out of HS with not enough exposure/time to learn about how to manage money with barely any growing up. Quickly they become enticed by the lottery salaries inside.
Yet we arenât here to focus on the bad money habits. Instead only the strategic ones that have allowed our idols to maintain their financial wealth and been diligent long-term with their finances ever since they made their first million.
Lavish lifestyles, jets, boats, cruises, and gateways come to mind with celebrities yet to be a savvy one that lasts not goes to jail or indebted, you need to be on top of your game in order to keep your head in the game.
Here are some well-known stars that have something to teach us:
FYI: Since this is coming from the handy dandy internet, this could be completely wrong or completely accurate. Who knows but try to get the bigger picture here that with more money doesnât mean more possessions and entitlement!
#1 Carrie Underwood (Musician/Singer/Songwriter)
Googled Net Worth: ~$140 million
Through all her Grammys and massive success as a country star, she is still down to earth and says she clips coupons and does her own grocery shopping each week!
#2 Ed Sheeran (Musician/Singer/Rapper/Songwriter)
Googled Net Worth: $200 million
Despite being one of the most famous and popular musicians in the world, Ed exclaims to ânever want to be wastefulâ and supposedly still uses his Barclays student bank account. This makes sense since he is from England after all. He diligently tracks his spending and crashes at peopleâs houses for weeks as well!
#3 Warren Buffett (Legendary Investor)
Googled Net Worth: $100.3 billion
Of course I canât write an article about diligent spending habits without mentioning the one and only legendary investor himself! Warren Buffett is one of the richest people in the world and has been consecutively ranked in the top 5 on the Fortune 400 list for decades. Yet instead of catapulting to space and chill on mega yachts as the rest of his billionaire squad does, he lives in the same modest Omaha house he purchased in 1958 for only $31,500. It is now worth $700k, barely .001% of his worth!! I have a feeling none of us would be that frugal at this stage, even myself as a frugal enthusiast.
#4 Tiffany Haddish (Actress, Comedian, Businesswoman)
Googled Net Worth: $6 million
Growing up poor and homeless motivated Tiffany to remain budget friendly even within her lucky breaks. The reason is due to heightened uncertainty around finances as a child. She supposedly wants to live âdown to earthâ and not extravagantly. She told People magazine, ââI still have a fake [Michael] Kors purse, but I got a real Givenchy bag, and Jada [Pinkett Smith] just gave me a Fendi bag. I havenât paid for these bags. These are gifts. The last bag that I bought myself was a Madden Girl backpack thatâs really cute. And it was on sale for $45!â
#5 Rob Gronkowski (NFL Football Player, Businessman)
Googled Net Worth: $45 million
Although football players are known to get into debt the fastest since they are recruited from an early age out of school, have a shortened career, and end up getting into trouble afterwards with a injuries, lack of education, and purpose, luckily for Gronk at 32 years old, he is surprisingly wealthier than when he landed his first signing bonus!
In his book, âItâs Good to Be Gronkâ he revealed he hadnât touched a dime of his bonus or NFL contract money not blowing it off on jewelry, tattoos and cars as most of his teammates get sidelined into doing.
No pun intended.
#6 Ashley Greene (Actress)
Googled Net Worth: $8 million
According to the internet and sources, she is known to be a stringent spender and knows what is and isnât a priority. She believes in quality over quantity and invests in things that will last, especially clothing. She says âshe saves money so she can pay her bills if she doesnât get steady workâ. In the entertainment to sports industry, expect uncertainty, volatility, and no call backs a.k.a ghosting for a while. These are the most volatile jobs that requires a 6â12 month backup plan, and emergency cash stash.
This list of celebrity financiers isnât exhaustive and Iâm sure and at least hope there are far more well-known celebrities that must be following some sort of protocol in order to retain their wealth as well, yet out of this group, I hope you can learn a thing or two.
A celebrityâs income and spending habits are completely different than ours because their lifestyles and ways of earning are unstable and uncertain. Plus with public scrutiny, this comes with more pressure to always look presentable.
Sadly, itâs hard to think of a celebrity from Hollywood or from the top 10 wealthiest list that hasnât gotten divorced or found the love of their life and actually stayed with it. From Bill Gates to Jeff Bezos to Kim Kardashian to Jason Sudeikis, these are some of the most expensive divorces of all time!
Reallocating and distributing wealth is no easy task when one person obviously wants more than their ex. Not only that, alimony payments to support their kids, moving out, going through lawsuits, and court to file for divorces are toxic, draining and expensivooo. Plus itâs all publicized which makes it 10x worse. I canât imagine how many couples are struggling and may want to break up but feel pressure to stick with it in order not to be scrutinized by the media.
Although much of their finances are discrete and opaque, we can all agree it can cost a fortune to look good in public 24/7. Although these celebrities have found their ways to save less by being sponsored by brands and get sent wardrobes and various things for free, they still have varying costs that eat into the budget more than we think. Just because Timothee Chalamet at the age of 25 is reportedly worth already a staggering $10 million, doesnât mean he has all of it invested in a low-cost diversified index fund or has a peace of mind crossing his fingers the next gig he picks up will last.
Pick your poison but all I can say is that I would rather live a simple, down to earth low-key life with more stability and education than walk on egg shells every time I wrap up a movie.
Be grateful for what you have and donât pay attention to what you donât for ultimate happiness.