3 financial mistakes celebrities make and what to learn from them

3 financial mistakes celebrities make and what to learn from them

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While we sometimes envy the lifestyles of the rich and famous, their lavish wealth doesn’t always make them better money managers. In fact, the financial mistakes celebrities make aren’t just isolated to them; The average person can also make the same bad money moves.

Bravo celebrity Buffie Purselle, who has had a successful career as an accountant and corporate executive for professional athletes, entertainers, reality TV stars and entrepreneurs, spoke to Select about the intersection between the financial failings she sees in celebrities and the usual financial deficiencies in everyday life human being is able to do this.

“I’ve witnessed one thing in common over and over again,” says Purselle. “That common ground is a bad relationship with money. If you have a bad relationship with money before you start making big bucks, those same bad habits will transfer.”

Below, Select takes a closer look at the three most common financial mistakes Purselle sees in celebrities, and what everyday people can learn from them.

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1. “Balling” when receiving lump sums of money

You’ve probably come across the slang term “ball out” to say you’re spending a lot of money when you get it. Purselle explains that she sees celebrities spend money for instant gratification, rather than opting for a smarter way to spend that money, like putting their money to work for them in the marketplace. For high earners, this step can lead to poor planning of expenses, such as B. A high tax bill that they may have to pay.

“This also happens to normal people when they receive annual bonuses and change their withholding taxes to maximize the amount of cash they receive,” Purselle adds. “It creates a financial nightmare when tax season comes around.”

Instead, whenever your income changes, write out a plan for maximizing that extra money before committing to anything. For example, a raise or bonus can help pay off high-interest debt or increase your savings.

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2. Not saying “no”.

3. Wearing their virtues

Celebrities often search for the latest fashion trends, which puts a lot of financial pressure on them.

Purselle says she’s observed that celebrities often spend money on high-end brands that they only wear once or twice. When the calls for performances keep falling, that’s when they really realize that their clothes, shoes, and jewelry are their greatest assets.

“Erica Girardi [now Erika Jayne] from ‘The Real Housewives of Beverly Hills’ recently found himself in this predicament and had to do it sell her clothes for a fraction of what she bought to survive,” says Purselle.

Buying clothes or accessories that are over budget is also something everyday people do. Purselle points out that a designer bag or a pair of shoes can easily add up to a paycheck or two, and this is often bought just to trick others into thinking they have more money than they actually have.

“The lesson is to stop trying to keep up with the Instagram-rich Joneses,” says Purselle. “They don’t have any money either.”

A good way to avoid temptation in the first place is to get off social media, where users are bombarded with marketing and images of people flaunting their latest purchases. Spending more money on consumer goods won’t make you happier in the long run. Instead, focus on social connections, experiences, and giving back when you can.

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Editorial note: Any opinion, analysis, review, or recommendation expressed in this article is solely that of Select’s editors and has not been reviewed, approved, or otherwise endorsed by any third party.

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