Most people dream of living the life of a celebrity. The multi-million dollar mansions, fancy cars and extravagant vacations celebrities frequently enjoy can be incredibly appealing. However, a lavish lifestyle isn’t always what media outlets make it out to be. Sometimes, even the richest members of society fall victim to overspending and poor money management, leaving them with nothing but a mountain of debt.
Fortunately, there are plenty of celebrities out there who developed strong money management skills during their career and are willing to share their financial advice. Read on to discover the best financial advice from budget-conscious celebrities and learn how you can apply it to your own life.
Ed Sheeran didn’t always live the comfortable lifestyle he enjoys today. In fact, he is known for living on a budget of $1,000 per month back in 2014 when he was beginning his journey to fame. His best piece of advice – no matter your income level, create a modest budget for yourself and invest any leftover funds.
The famous singer now has a net worth of $200 million and 27 investment properties. While the average person probably won’t achieve this level of financial success, Sheeran’s advice can help anyone with leftover income grow their money and improve their assets. Just be sure to tailor your budget to your specific income.
If you suddenly find yourself with more disposable income than you’re used to, it can be tempting to hop on the latest fashion trend and update your wardrobe. However, Tiffany Haddish recommends resisting the urge and opting for more affordable clothing options.
Haddish comes from a humble background and, despite her $6 million net worth, she frequently avoids designer items. Instead of shopping luxury, she opts for affordable, quality pieces that she will love for a long time.
Fashion fads come and go, and trying to keep up with them isn’t sustainable for anyone. So next time your wardrobe needs an update, consider taking Haddish’s advice. Look for deals well within your budget, and go for pieces that you can wear for a long time.
Keanu Reeves is known for his generosity and down-to-earth attitude, and he often applies those traits to his spending habits. Reeves donates a lot of his money and strives for simplicity when buying things for himself.
“I give lots away and live simply, mostly out of a suitcase in hotels. We all know that good health is more important.”
What is Reeves’ best piece of advice? Be practical. Managing money becomes more complicated as your assets increase, and practical spending habits can make life a lot simpler.
When Celebrities Meet Their Financial Downfall
If you are still skeptical about taking financial advice from the rich and famous, try looking at it this way. Even though celebrities seem to have it easy when it comes to finances (and many do, to be fair), they can fall victim to poor spending habits just like anyone else.
For example, Mike Tyson, who was bringing in $30 million a night at the peak of his boxing career, filed for bankruptcy in 2003. He spent his fortune on a luxury lifestyle and eventually found himself in millions of dollars of debt. He has since recovered some of his fortune by taking on acting roles and rethinking his spending habits, but his current $3 million net worth is only a fraction of the $300 million he had once achieved.
You might not find yourself in as extreme of a situation as Mike Tyson, but his case shows that spending beyond your means at any scale can land you in financial trouble. Fortunately, you can avoid a similar fate by avoiding overspending and sticking to your budget.
If you are interested in celebrity success stories, check out the infographic below for more financial advice from budget-savvy celebrities.