Trying to grow a personal investment from a modest base can feel like climbing a mountain. No matter how much effort and experimentation that is put into the struggle, the unsatisfactory end result seems to repeat itself. Where does the quality financial advice actually lie when citizens are looking for an answer?
Clearly celebrities by themselves are far from the answer. Their talent will lie with entertainment creation, allowing their profile and their brand to create multiple streams of wealth. While this gives them a great advantage, that money can quickly disappear if it is not managed correctly.
Of course celebrities love to talk a good game and exude a sense of self-confidence, but their bank account does indicate that talent and financial management go hand-in-hand. The question is whether or not individuals are willing to take stock and assess their trajectory in an objective manner, tapping into a number of case studies that will be applicable to real world scenarios outside of the entertainment bubble.
Ownership and control is where celebrities have really turned the table in the field of financial advice. For personalities who often have to collaborate with others and follow a script with a creative endeavor, it is a real departure to break out of that dynamic and own a brand or a piece of real estate. Achieving financial independence will be a harder road for some over others, but the continued practice of renting goods and services to relying on outside intervention will create barriers to growth.
It might seem counterintuitive for celebrities to advocate for prudence given their high profile and desire for the spotlight, but it is a method that really works for financial advice. Rather than throwing every expense at the credit card to be paid off at a later date, this accumulation of ‘wealth’ will only end up acting as debt when the bill is finally due. By avoiding the trappings of luxury and investing in goods and services that have long-term value, the future financial prospects will be brighter.
Marie Kondo’s series on Netflix would be eye-opening for many viewers with her philosophy translating directly to the domain of financial advice. Her approach is to remove clutter from domestic spaces in order to optimize and leverage the location. While that is beneficial to hear, it is a principle that works just as well for the bank account. What are those subscriptions that never get used? What are those transactions that offer no great value or return? Starting to cut out those payments is the beginning of the process.
A common challenge that celebrities face when receiving financial advice is not to react suddenly to a new trend that has media attention. Although there are cases with social media apps, cryptocurrencies and sports ventures that do receive a large dividend once they have gone mainstream, it is the calculation of the market with savvy advisors where the real gains are found.
Financial literacy is a major component that high profile figures will highlight. Of course musicians and actors are labeled as somewhat simple in this domain, but that would be a misconception with the likes of Beyonce Knowles, P Diddy, Dwayne Johnson, George Clooney and Jerry Seinfeld all utilizing their acumen to study the market and make strategic decisions that impact their bottom line. It is not a means of superiority over other individuals rather than having the humility to be educated on the subject.
For every successful case study that links the industry of financial advice with celebrities, there is the case of Bernie Madoff where entire fortunes were lost due to fraud and mismanagement. Those cautionary tales are a sign that anyone with any amount of money can lose it all, so a careful and studied approach to money is where investment strategy really pays off for the long-term.