Models and actors often face unique financial challenges in their careers. Staying rich and building legacy wealth is challenging with fluctuating income and a short-lived peak earning period. Without proper financial planning, these challenges can quickly turn into costly mistakes that affect their financial security in the long term. In this post, we will discuss five common mistakes models and actors make with their finances and show you how to avoid them.

1. Failing to Create a Budget

• Zoella, a famous YouTuber and beauty influencer, has spoken publicly about her struggles with managing money and creating a budget. Zoella has admitted to overspending and not keeping track of expenses in the past, really taking a toll on her ability to invest and grow her brand, but has since taken steps to improve her financial management skills.
• Oprah Winfrey, media mogul and philanthropist, is known for her savvy financial management skills. Winfrey has spoken publicly about the importance of creating a budget and tracking expenses, which has helped her build wealth and financial stability over the years.

2. Not Saving for Taxes

• Mike Tyson, the former heavyweight boxing champion, famously struggled with financial issues throughout his career. In the early 2000s, Tyson faced major tax problems and ended up owing over $13 million in back taxes and penalties to the IRS. Tyson later admitted that he didn’t properly manage his finances and didn’t save enough money to cover his tax obligations. Tyson’s financial troubles led to him declaring bankruptcy in 2003, despite earning an estimated $400 million throughout his career.

3. Not Diversifying Their Income

• Kylie Jenner, a model and entrepreneur, faced criticism early in her career for relying solely on her family’s reality show for income. However, Jenner has since diversified her income by launching her own makeup brand, Kylie Cosmetics, and expanding her brand to include fashion and skincare.
• Rihanna, the singer, fashion designer, and entrepreneur, is known for her success in multiple industries. Rihanna has diversified her income by launching her own fashion and beauty brands, and investing in ventures such as real estate and tech startups.

4. Not Saving for Retirement

• Miranda Kerr, a supermodel and businesswoman, has spoken publicly about the importance of saving for retirement and building a long-term financial plan. Kerr has invested in real estate and other ventures to ensure that she’s financially secure in her retirement years.

5. Not Seeking Professional Financial Advice

• Casey Neistat, a famous YouTuber, has spoken publicly about his regret for not seeking professional financial advice earlier in his career. Neistat admitted to making costly mistakes due to a lack of financial knowledge, such as not paying enough attention to tax implications and not taking advantage of investment opportunities.
• Jay-Z, the rapper and entrepreneur, is known for his business acumen and smart financial decisions. Jay-Z has spoken publicly about the importance of seeking professional financial advice, which has helped him avoid costly mistakes and build wealth through investments in companies such as Uber and Tidal.

6. (Bonus) Not Considering Life Insurance

• Chrissy Teigen, a model and social media influencer, recently spoke about the importance of life insurance after the death of her son. Teigen and her husband, singer John Legend, now have life insurance policies in place to ensure their family’s financial stability in the event of unexpected events. Discuss insurance and see if it makes sense for your goals and your life, in most cases insurance makes sense, just depends on how it is structured for your goals.