How the Rich & Famous Take Care of Their Cash

We all love following the lifestyles of the rich and famous. Getting to see how the other half lives are one of life's visceral pleasures, imagine it was us, what would we do with access to such riches. It can be interesting to have a closer look at how these celebrities and stars manage their money. With closer inspection, we can see some examples of great investments, others make poor decisions, and some are downright baffling. We have to admit that the term rich and famous encapsulates a variety of individuals from a wide range of backgrounds. Considering the differences in how a member of the Royal Family came to their wealth in comparison to a Hollywood actor, we may find a considerable difference in how they manage wealth. A football player may have a different perspective on what constitutes a good use of money than a famous artist. What we can agree on, however, is that the choices available to these individuals are something that the humble commoner, such as you or I, can only dream of.

They Blow it.

You've got to love a good story where someone blows a fortune, don't you? I always feel this kind of behavior is an adult version of laughing at your best friend when they trip over in the playground, especially if they are cooler than you. The higher profile the individual who blows the fortune, the more enjoyable it can be to watch; Donald Trump always loves to play the victim, and even when occupying the highest office in the land, seems to claim that he's hard done by. Also remember that Trump has filed for bankruptcy six times, although it is argued that this was a shrewd business move, or a callous disregard for paying his way, you decide?

Other famous examples of bankrupt celebrities come from all industries, and we have seen such big names as Mike Tyson and Nick Cage filing for bankruptcy during their careers. Even one of the richest ever pop stars, Michael Jackson, was reportedly between $400 and $500 million in debt when he died. Other stars have money issues connected to poor management or controlling parents in the case of child stars. We have seen the famous case of where Macaulay Culkin legally emancipated himself from his parents at the tender age of fifteen to protect his financial interests. Or the even more intriguing subject of the recent Brittany Spears documentary where her father has absolute legal control over her interests where he is her legal conservator.

Professional Financial Advisor

Why have so many famous names came financially undone when they have such vast resources? The simple answer is to state that they spend more than they make, but that's a bit of a cop-out as an explanation. You've got to get inside the head of why some cannot control themselves. Essentially other than the luck of either having great talent or being in the right place at the right time, most celebrities are just people, and they often have as poor impulse control as you or I. But when you feel like you have all the money in the world, this can be a dangerous urge. If they are wise then it would make sense to employ a dedicated and professional financial advisor to take care of their money.

Invest in Expensive Things & Beautiful Objects

If you can afford to, then why not surround yourself with beautiful things, this is why you see many celebrities' homes covered in expensive purchases. These items can be anything from expensive art, to designer furniture, or expensive cars. Some of the more outlandish examples of this are crazy, check out Rihanna's $1 million hair bill, the previously mentioned Mike Tyson with a pair of Bengal Tigers for $150,000 (not counting the cost of keeping them), or Bono's $1,700 plane ticket for his hat!

Currency Investment

We all know that part and parcel of the celebrity lifestyle is the freedom to travel and do so in style. It's no wonder that the average famous person is no stranger to currency exchange, but it can go far beyond a trip to the Bureau de Change to swap the holiday money into the local currency. One investment strategy is to bet on the rise and fall of national currencies, you need to predict which economies will do well and buy low to sell high. But with governments keen for currency stability to ensure a healthy economy, we rarely see huge gains in these markets, barring an economy collapsing. This has lead to many, including celebrities turning to the cryptocurrency markets. Cryptocurrencies are new digital currencies that are not tied to any one economy or controlled by any government or national bank. This lack of regulation allows for a real free-market economy in these currencies. You may have heard of the vast gains made this year by investors in Bitcoin, but there are hundreds more of these cryptocurrencies. Anyone can find out how to buy Ethereum in Canada and invest too.

Lavish Property

Surely, there isn't a person on the planet that doesn't dream of living in a lavish and overly-indulgent luxury property; this is why celebrity homes fascinate us so much. These homes are vast and impressive, from George Lucas's well-known Skywalker Ranch to Bill Gates's $125 million lakefront estate that's pretty much a resort we can only dream of living in such luxury. There are more sinister examples; such as the Neverland ranch where many accusations of abuse were leveled at Michael Jackson.

Interesting Business Investments

Some of the most fascinating investments we see from celebrities are the businesses they invest in. Take the recent fact of why Ryan Renolds and Rob McElhenney have bought a Welsh soccer team! On closer inspection of the story, there seems to be a link to them promoting their Aviation Gin brand, but owning a sports team always seems fun, if you can afford it. Whether it works as a commercial strategy remains to be seen, but I'm sure they can afford it.