Celebrities usually have huge incomes. Whether they are actors, musicians, TV presenters, entrepreneurs, influencers, youtubers or socialites, most have significant income. We would think that for them it is enough with the income they have for their economic activity. On the contrary, many of them make investments to preserve their heritage over time. That is why today we will talk about what celebrities and celebrities invest their money in.
Many of them invest in activities connected to their work. Others, on the contrary, invest their money in activities that are completely alien to them. Some do their job of researching where to invest. Others invest through advisors who are dedicated to celebrities and celebrities. Some will wonder, “Why do celebrities invest if they have so much money?”. In this article you will find the answers you are looking for.
Why invest and why do celebrities invest?
We all know that, however small inflation may be, money over time loses value. With inflation as small as 2%, money saved over 10 years loses 20% of its value. If we save for our retirement, with an inflation of 2% the money kept for 30 years loses almost 50% of its value.
For athletes, musicians, and actors whose careers can be spectacular but fleeting, preserving the value of money is essential. That is why the money they earn quickly if they do not invest it will end up disappearing a few years.
We have already talked about this topic in our article “Finance for athletes“. There we mention how short your professional career can be.
As we said, the career of a celebrity can be very short. If we add to this the immaturity of youth, we have the conditions for a financial collapse. For example, statistics show that more than half of athletes spend their savings in less than 5 years. With this, their financial stability disappears, no matter what their income.
The same usually applies to musicians, actors among other celebrities. That is why today we will see the keys to avoid the financial debacle and we will reveal the following question: what do celebrities invest in?
What do celebrities invest in?
Celebrities can invest in businesses, the stock market, or any other asset. They invest in numerous instruments. One of the keys is to diversify your investment portfolio. Next, we will tell you what some celebrities invest in:
- Sylvester Stallone: The famous Hollywood actor has been characterized by his propensity to invest. His first known investment was “Planet Hollywood”, a themed restaurant he founded in partnership with Bruce Willis, Demi Moore and Arnold Schwarzenegger. This has become a famous chain of restaurants around the world. It has also invested in real estate. He has also invested in a football team, other restaurants, a liquor brand and even clothing and perfumes. Stallone is a well-diversified investor.
- Ashton Kutcher: Thanks to his portrayal of Steve Jobs, he discovered his passion for business. To date, it has investments in shares in more than 50 companies. In addition, he founded a venture capital firm called A-Grade Investments, focused on application and e-commerce companies.
- Beyoncé: The famous singer began her career as an investor when she asked as payment for a concert in Las Vegas were paid in shares of Uber. This happened even before it was listed on the stock exchange. Thanks to this, his 6 million dollars of fees became 300 million.
- Jared Leto: Invest in tech startups when they’re just starting out. Some of the companies in which he invested were Snapchat, Spotify, Uber and Airbnb. Undoubtedly excellent investments considering what happened.
- Jessica Alva: Your company “The Honest Company” sells beauty products for the skin, vitamins, cleaning products among others. It currently had revenues of more than $100 million and profits of more than $30 million. A true entrepreneur.
7 Keys to Avoid Personal Financial Ruin – Cebrities Invest
Whether you are a famous person or an ordinary person, there are keys that apply to all of us. Some may have more slack to achieve their financial goals, but there are secrets we all need to share. If you follow these tips, you will have money to invest and perhaps you can share shares in which celebrities invest. So here are the 10 keys to avoid a financial catastrophe:
1. Always try to save:
Unless you’re in a situation where you can’t afford your food or your roof, you can always save. Sometimes saving means buying a cheaper brand that doesn’t sacrifice quality. Sometimes it means buying in times of savings like Black Friday or Cibermonday.
2. Your income must be greater than your expenses:
You must ensure that your economic income is greater than your expenses. To do this, you can choose to increase your income or reduce your expenses.
3. Separate your regular budget from your tastes and entertainment:
If you enjoy cinema, you should know that it is not something indispensable. You need to distract yourself, but there are many ways to do it. Separate your needs from your tastes. In this way you will become aware when an expense is indispensable and when it is not.
4. If you’re going to buy something, don’t buy it the first time you see it:
This is a key to avoiding impulse purchases. On many occasions we decide to buy something we like, and with the passing of the days we regret it. Either because it was something we didn’t need or because we know we’re not going to use it. Therefore, I invite you to postpone as many non-essential purchases as possible. With this they can have time to consider their cold purchase and give their money a second chance.
5. Reduce ant expenses:
Those small expenses that we make with such a high frequency that it ends up weighing on our budget. Here we can include coffee and street food, sweets, liquor and cigarettes. These are usually our ant expenses. We see that they are small, but by accumulation they end up being larger than expected in our budget.
6. Make a monthly budget:
On many occasions we do not make a budget of expenses. This means that we have no control of our expenses on a day-to-day basis. If we do not know how much we spend we do not know where we can decrease our expenses or if we should increase our income.
7. Set money away from savings from the beginning:
There are people who leave for after all expenses the savings. The recommendation is that they set aside the savings planned at the beginning and leave the money from all expenses in your account. This ensures that they save. If they have money left after the expenses, they can incorporate it into savings. If they have no money left and have to appeal to savings, then they will have to check what happened… But thanks to setting aside the savings, the money is there to fix.
Follow the advice of Gustavo Mirabal and you will achieve financial success soon, if you are constant. We wish you success and then you can tell us how you did.