What Money Mistakes Should Famous People (And Everyone Else) Avoid? Hear From A Celebrity Financial Advisor

When it comes to money management, everyone is likely to struggle, regardless of their gender and professional background. Of course, famous people, celebrities, and athletes are no exception. When it comes to celebrities, their lifestyle, and income, we make quick judgments, envying their rapidly-growing wealth and become jealous of just how quickly they make millions of dollars.

It is believed that celebrities and athletes have the magical wind of building a strong net worth in a short period of time, however, this assumption is simply not entirely true. Only part of that is true, given the high-paying salaries of these athletes and celebrities but in reality they are just as inefficient with money management as other common people.

Maitree / Pexels / A report from Kipling shows that 80% of athletes go bankrupt at least after four years of retirement.

“This is a major issue among common people,” argues Eszylfie, a professional advisor to rock stars, athletes and celebrities. “Athletes are by no means efficient with money management. They make terrible financial decisions. Consequently, they fell victim to bad money management strategies.” Furthermore, Eszylfie suggests that athletes and celebrities need to be more ‘money active’ than average workers.

Thus, the financial advisor to rock stars lists a series of mistakes that these famous people make. As you read on, keep in mind that these mistakes are found among common people as well. So, make sure that you do not make those mistakes.

• Solely Relying On Accountants & Managers

“One of the gravest financial mistakes almost all rich people make is relying thoroughly on their team,” Eszylfie argues. It makes sense that celebrities have a very tough schedule, and they do need a manager or an accountant to look after their money. “But this does not mean that you completely take off your hands from your money,” he suggests.

Karolina / Pexels / Most rich people do not know about their money at all. Everything is controlled by their teams.

Furthermore, Eszylfie argues that as these athletes and famous people totally rely on their money-management team, they have no clue where their money goes. In the long run, this backfires badly and they become a victim of financial loss.” So, if you really need a manager to look after your money, good for you. But make sure that you have a fair track of your money.

• Looking At Short Term Goals

Eszylfie notes short-term goals as another financial mistake that famous and rich people make. “They do not see the bigger picture,” he says. Essentially, athletes and celebrities have a window of massive earning. “Some athletes have a two years massive earning window. Others have 6, 7, or even 10 years. All is fine. But the real issue is that they fail to look beyond their earning window.”

Pixabay / Pexels / Money always works in the long-term game.

Thus, as they see the short term they fell victim to financial loss in the longer run. So, if you ever find yourself in that position, look at the bigger picture. Visualize yourself after retirement. Assume how your life will be after retirement. In turn, you will effectively manage your money.