Celebrities are some of the best people to give financial advice since many of them are running successful businesses and careers. A lot of celebrities are also very relatable with humble backgrounds that were full of financial hardships.
Their time in the limelight has taught them several lessons on money management that can be very helpful to you as well. Here are some of the best lessons on financial management by celebrities.
Oprah Winfrey is one of the richest women in the world with a net worth of $2.6 billion. She got her success from ‘The Oprah Winfrey Show’ which ran on television for 25 years. Her story is one of the most inspiring ones having been born to a single mother and facing numerous hardships growing up.
Her best advice is “I hope the way you spend your money is in line with the truth of who you are and what you care about”.
This is from her book ‘What I Know for Sure’ where she urges people to believe in themselves and invest financially in those beliefs. She encourages that you should have confidence in your success in the future and keep going even when things are tough.
Ashton Kutcher is best known for playing Eric Forman in ‘That ‘70s Show’. He invested in some companies including Uber, Skype, Spotify, and Airbnb turning $30 million into $250 million. He suggests that you invest in things you know. For instance, if you enjoy beer, your knowledge of it can be useful in making investment decisions.
He advises that you conduct research in your area of interest to find out where the investment opportunities lie. Ashton encourages people to always ask questions even if they sound stupid so that they fill all knowledge gaps. He insists on confronting your own ignorance whether young and old so that you don’t limit your potential.
He also encourages that after you have succeeded, you lend others a hand to make it as well.
Ellen’s career moved from stand-up comedy to hosting her own talk show. Ellen is a multi-millionaire now despite coming from a humble background. She had a tough childhood since her family was not well off and spent her early adult years doing odd jobs. One of Ellen’s main financial advice is “Don’t be afraid to spend”.
She advises against being frugal and encourages people not to limit themselves too much in using money. To get what you want and do what you want believing in abundance rather than being afraid of running out of money. This is advice that has been proven to work since living while denying yourself too much can be very demotivating.
Mark Cuban, the billionaire owner of Dallas Mavericks and shark on the show Shark Tank encourages saving for emergencies. He insists that in case things go wrong whether you are fired or you move, you need at least six months worth of income.
Emergency funds are critical to all of us and his advice is one of the most encouraging financial decisions.
Early saving for emergencies will cushion you and allow you time to recollect and recover yourself as you find your next source of income. You can start saving small from your paycheck or any source of income you have consistently and over time, you will build an emergency fund that will save you.
Queen Latifa the singer and actor is worth $60 million. She cites her mother as the person she learned the most when it came to managing money. Her mother advised her to save her money, to pay taxes, and not put everything in the same basket. At the same time, she was encouraged to be creative and explore.
Savings and tax-paying are the basic principles of personal financial practices. Financial advisors usually recommend you save money on a regular basis depending on your income. Savings can act as an emergency fund or even contribute towards your bigger purchases or investments.
Paying taxes will keep you debt-free and law-abiding.
Melissa McCarthy advises that you prepare to negotiate and ask for what you deserve in terms of payment. A lot of times people are stuck in jobs that are paying them well below their rates and skills because they do not have the confidence to negotiate. She encourages that you put everything on the line and ask for what you deserve.
Her advice is that you tell them what you want and be ready to walk away if they are not willing to meet your demands. The skills to negotiate will come in handy in your work. If you can’t ask for proper pay, you will be paid much less than what you deserve.
Jay Leno was the host of “The Tonight Show” and made millions. His advice is however leaning more into being frugal with your money. He advises that you find a way to make two streams of income from which you decide which to spend and which to save. He encourages you to spend the lower stream of income and save the higher one.
He says he used to save most of the money he made as a comedian and spent the money he made from the car dealership. Having multiple streams of income will help you not just earn more but also have money to spare after spending.
Neal Patrick Harris
Neil Patrick Harris is known for his many roles in ‘How I Met Your Mother’ and ‘Doogie Howser’ among others. His advice is to be frugal in your spending.
He says that he does not spend much on furniture for his home as he has children and dogs who will ultimately damage them. Basically, it is the age-old saying that you can’t have nice things if you have kids and pets.
He says he sometimes shops for cheap furniture at Overstock.com. His advice is very useful in deciding where to spend your money. It is important that you don’t buy expensive items if they are likely to be damaged but rather buy cheaper replaceable ones to save money.
The Queen of Rap Nicki Minaj advises you to know your worth and ask for it. Nicki Minaj had an early life that was full of hardship before becoming a very successful rapper worth millions. She says that early on in her career since she was a female rapper in a male-dominated industry, she would get paid less.
She then demanded that she gets paid what she is worth as she was entertaining just as well as her peers. She encourages that you become unapologetic in asking for what you want. A big part of being able to demand better pay is knowing your worth.
Eminem is one of the best-selling rappers with a net worth of $100 million. His background was very poor. He says he treats the money he makes at the moment like it will be the last time he ever makes it. His advice is to be smart with your money. That way you will save and invest as if you don’t expect any more money.
Counting on money that you will receive on your next income is one of the ways people end up not saving or investing. However, if you make smart decisions with what you have at hand, you will be able to save properly and consistently.
Read also: 20 Celebrities Who Lost All Their Money