Media and sports celebrities all make a ton of money—enough that one might think they are set for a lifetime of comfortable living. Unfortunately, that is rarely the case. Despite how much money these famous people make, we often hear stories about how many of them ended up bankrupt or having trouble with their finances. Sadly, their lavish lifestyles and failure to keep track of how they spend their money all put them in a hole. And since most celebrities are only famous for a short amount of time, it is fairly common for many to spend everything they earned without a proper plan for their finances. Better money management could have set them up for a lifetime of wealth-building.
Indeed, there are many lessons you can learn by observing celebrities and their equally famous financial problems. Now, you may not make as much as them in a single paycheck, which is all the more reason to be wise about your spending.
Your budget and a financial plan put in place
Worrying about finances is a normal part of everyday life. But, it does not mean you should be unnecessarily stressed out about money. What you need to do first is to identify specific expenses that drain your bank account regularly. For example, do you have subscriptions to streaming services and other entertainment platforms like a bingo app, perhaps? If you want to keep these services, you can always downgrade your subscription and spend only the bare minimum.
Another thing you can do is use a budgeting application so that you can prevent unnecessary expenses. Do you spend too much on coffee every day? How about eating more often at home or bringing packed lunch instead of takeout? Remember that you do not need to have a luxurious lifestyle or eat in the same places that celebrities go to.
Get used to paying in cash
Using a credit card to pay is the norm these days. The problem with credit cards is that you can easily spend more than you can afford and eventually end up paying thousands of dollars in interest. If you take a page out of Nicolas Cage’s book, you might also end up regretting an expensive purchase made using a credit card.
Instead of carrying plastic, make it a habit to have cash in your wallet at all times. If you are going out with friends, make sure you have enough money to spend without resorting to using your card. As you become more accustomed to paying in cash, you will eventually start using your credit card less and less for unnecessary purchases.
Get financial advice from an expert
Oprah is perhaps one of the most vocal about hiring a financial advisor, and you can also do the same thing. There are life coaches that focus on helping people become wiser about their spending while at the same time, have a solid financial plan for their future. A coach can help you visualize your goals and come up with actionable ways to achieve them. Often, a third-party outlook is just what everyone needs to have the courage to make their goals a reality.