Category: Blog

Top 3 Financial Lessons You Can Learn from Celebrities

Celebrities make money more than regular mortals do. But ironically, they tend to get into financial troubles more easily and frequently. Everyone can learn a thing or two from their experiences when it comes to personal finance.

Here are some valuable financial lessons that you can learn from embattled celebrities:

Paying taxes on time and correctly

Running away from one’s tax obligations can have serious consequences—take it from the experience of actor Nicolas Cage and rapper Jay-Z who were slapped with tax evasion cases. It’s best to keep yourself informed and updated on tax laws. If you are running a business and have no time to take care of your taxes, then hire an accountant or auditor who will make sure you’ll make timely and correct tax payments.

Living within one’s means

A lot of celebrities are known for their lavish lifestyles—after all, they earn large bucks and continue to do so. So it’s easier to overspend rather than save money. Even non-celebrities can fall trap into this bad money habit, regardless of how much they make in a year. Do a reality check: how much are you actually making? What kind of lifestyle can you really afford? Once you’ve come up with honest answers, decide on the expenses that you can prioritize and those that you can let go.

Having a pre-nuptial agreement

This may sound like the most unromantic thing to do, but arranging for an agreement on how you’ll go about your finances as a married couple is a practical move that can protect the assets of both parties. And when your marriage ends up in a divorce, the suffering and adverse effects won’t be as painful.

What other things can we learn from people in the limelight about handling finances? Share your ideas in the comments!

What Qualities to Look For in a Financial Planner? Choosing the Best Advisor for Your Money Management Needs

Not everyone is capable of managing personal finances on his own. This is why some money-savvy people hire financial experts—also known as financial planners or advisors—to help them make wise money decisions.

Looking for a financial planner for your money management needs? Here are the most important qualities you must look for in a potential advisor:

Certified or registered practitioner


A certified financial planner (CFP) has at least 3 years of relevant work experience and has passed a rigorous exam that tests knowledge on various finance topics such as retirement planning, insurance, investments, and financial planning, among others. If your money advisor is a CFP, you can be sure that he or she is well-equipped to guide you through your financial journey.

Wisdom

Money is a serious matter—you don’t want to entrust your money to someone who lacks experience and knowledge in handling someone else’s finances. When you interview possible financial advisors, ask probing questions to get to know their level of wisdom when it comes to managing and making decisions on money.

Independence

A good financial planner is someone who’s not beholden to a broker-dealer, as this restricts the kind of financial products he can recommend. Choose someone who’s independent and can provide you with a wide variety of options.

Empathy

More than technical knowledge and experience, a sound financial advice comes from an expert who also knows how to empathize with his clients. The best financial planner is someone who genuinely cares for the overall well-being of his clients, listens to their concerns, and ask thoughtful questions to understand clients and their needs better.

In a nutshell, you need a financial advisor who has strong leadership skills—someone who is a complete package. If you can find all these four qualities in a financial planner, then you’ll have a trusted partner for handling your finances.

Top 4 Popular Reasons for Taking Out a Personal Loan

Hesitant about applying for a loan because you’re afraid of getting buried deep in debt? Don’t be.

Just because you’re borrowing money doesn’t necessarily mean you’ll be quickly caught into the debt trap. When managed properly—and for good reasons—a personal loan can help you maximize your cash flow and improve your life in the process. It can even help you pay off an existing debt.

Here are some really good reasons for taking out a personal loan:

Build an emergency fund

Rather than wait until an emergency happens—such as when you or a family member needs immediate a medical attention—be proactive by getting a personal loan beforehand. In doing so, you’ll have adequate time to pay your loan off while building your savings.

Consolidate your debt

You consolidate your debt to save money. Getting a personal loan for this purpose allows you to combine your other debts such as credit cards and car loans into only one loan with a fixed monthly installment amount and interest rate.

Cover your wedding expenses

Having one’s dream wedding these days entails a lot of cash, and not all couples can afford—or even save money in a year—to release a large sum of amount right off the bat. With wedding costs in the United States averaging at around $35,000 (excluding honeymoon costs), personal loans can save couples from money problems that come from planning a wedding. Before you apply for a loan to cover your wedding expenses, be sure to have a specific and realistic repayment plan in place so that you won’t deal with bigger debts later on.

Start a business

Want to start a business but you have insufficient funds for your capital? A personal loan can save the day—you can borrow money to build your business and when it begins to earn profits, you can repay the loan.

Personal loans aren’t inherently bad. It just takes wise planning and financial discipline to be able to make the most of its benefits.