BASIC FINANCIAL EDUCATION FOR CELEBRITIES PART 2

Welcome to another week of financial learning. In part one of this topic, we addressed the challenges celebrities go through. I enlisted some of the means through which celebrities could enlighten themselves financially.

I will conclude on the topic with this part. We need to remember that fame and fortune do not make you more financially literate!

Hire a good financial planner

I hinted at this point in my introduction. Celebrities need good financial advisors who will give them directions towards financial discipline.

A financial advisor can help you to take a loan to buy that flashy car and pay within a period of 5 years.

Hitherto, you will pay for that same vehicle now and end up drying down your liquidity. The financial advisor will do a cost-benefit analysis on investments you may want to try to be i.e real estate, transport or commerce.

Whiles you maintain your talent manager, do same for your finances. Never mix the two. Your talent manager should not be allowed to manage your finances. It is not proper for accountability purposes.

The recent financial challenges in Ghana brought to bear some wrong investments by our celebrities. The question is, who did they discuss these decisions with? Their ignorance friends?

Their families? Your financial advisor should even regulate how much you donate towards a foundation and projects as a celebrity. Your financial advisor should do endorsements screening!

In the midst of the financial advisor, take a personal interest in financial education. Spend time reading about financial stuff online and programs. If you are too busy to learn, others will also be less busy stealing your money!

Learn to just say NO

Only a few of us have the discipline to say no to ourselves. We allow money to burn holes in our pockets or purses just to have the latest kicks, smartphone or other flashy with fewer value items.

More painful for many celebs is that they too often don’t say no to the friends, family members, and others who will gladly spend their money for them if you let them.

Celebs need to live according to a budget, so they can make money decisions based on their agenda, not the desires of others.

It is also a reason why having a trusted qualified financial advisor is important.

All you need to do is to send funding requests from your friends and relatives (and enemies and strangers, if you are rich and famous), to your advisor and let him be the bad person. You do not pay him to make the decision.

You pay him to say no and to take the blame for standing in the way of your boundless generosity.

The same family and friends will throw shades of insults on you in time of future financial challenges. Wise up!

Huge income without corresponding financial plan and advice will lead to bankruptcy!