Many celebrities have amassed net worths in the millions — and even billions — of dollars. But just because they have a lot of money, this doesn’t mean they always manage it properly. While you might not ever reach the levels of wealth and fame of some of the biggest stars on the planet, there are still invaluable lessons you can learn from what they do with their money.
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In a recent YouTube video, money expert Rachel Cruze broke down the things some notable celebrities have gotten right and wrong about money. Here are some of the takeaways that even nonfamous people can learn from.
Lebron James has amassed a $1.2 billion net worth thanks to his sports contracts, businesses and endorsement deals. But despite this wealth, James is a disciplined saver.
“His uncle would give him $1 and tell him to save 65 cents of it, and he still owes his wealth to learning that habit early on when it comes to saving,” Cruze said.
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Even though Kylie Jenner was born into a wealthy family, much of her current fortune is thanks to her brand Kylie Cosmetics. She was able to grow the brand to a $1 billion-plus valuation thanks to her promotion of her lip kits on social media.
“One lesson from Kylie is that you can use influence, you can use networking, and if you have a skill or an expertise in a certain area, lean into that,” Cruze said. “Her celebrity factor obviously helped her in this too, but she loved makeup and cosmetics, and look at that girl go.”
Dwayne “The Rock” Johnson has built his $800 million net worth by exploring many different avenues.
“He was in the wrestling world for years, and then he started saying yes to other opportunities, like brand deals, kids movies, the United Football League, hosting gigs and all of that,” Cruze said. “He stays really busy, and he says the secret to his success is consistency. So you don’t have to be great at everything that you try, but the idea is that you consistently show up and try new things.”
Despite her $350 million net worth, Mariah Carey is reportedly in debt after taking out a loan against her $30 million home in New York City.
“This is a lesson that we can say we don’t want to do,” Cruze said. “And people will do this. They will pull equity out of their home, take on a second mortgage or get a HELOC. But taking and borrowing money against your home is not a great idea, because No. 1, you’re taking on more debt. You’re taking the equity that was building and actually advancing your net worth, and using that money for other things. It’s just not a wise thing to do.”
