3 Financial Mistakes Celebrities Make and What to Learn From Them

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Although we may sometimes envy the lifestyles of the rich and famous, their abundant wealth does not always translate into good money managers. In fact, the financial mistakes celebrities make aren’t just for them; The average person can run the same bad money.

Bravo celebrity Buffy Purcell – who has built a successful career as a tax accountant and business manager for professional athletes, entertainers, reality TV stars and entrepreneurs – picks up on the overlap between the money mistakes she makes and common financial mistakes made every day. The person is capable.

“I see the same similarities over and over again,” says Purcell. “That analogy is a bad relationship with money. If you have a bad relationship with money before you start making a lot of money, those bad habits will grow.”

Below, the selection takes a closer look at the top three financial mistakes Purcell sees celebrities make and what the everyday person can learn from them.

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1. ‘Bowling’ when they receive a lump sum

You’ve come across the slang phrase “ball out” before as another way to spend a lot of cash when you get it. Purcell explains that she sees celebrities throwing money at things for instant gratification instead of choosing smart ways to use it, such as making cash work for them in the marketplace. For high earners, the move could lead to poorer planning for expenses, such as a larger tax bill they may have to pay.

“It also happens to regular people when they receive an annual bonus and change their tax withholding to maximize the amount of cash they receive,” Purcell adds. “It creates a financial nightmare when tax season comes around.”

Instead, when your income changes, write a plan for how to maximize that extra cash before doing anything else. For example, a raise in salary or bonus can help pay off high-interest debt or increase your savings.

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2. Not saying ‘no’

3. Levying their property

Editorial Note: The opinions, analyses, reviews or recommendations expressed in this article are solely those of the selected editorial staff, and have not been reviewed, approved or otherwise endorsed by any third party.

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