Rich people, wherever they may be, or wherever you see them, either in the media or in your daily lives, you will always hear some hilarious assumptions being made about them. But then again, some, if not most of the things that you hear are probably true. The monikers of wealth – expensive designer bags, sunglasses, luxurious vehicles. You will, however, still find different stereotypes about the rich.
Of course these stories can affect your money management ability and even discourage some people from accessing financial services like loans. Experts however encourage their clients to apply for loans. A meeting with them will clear any misconceptions you might have about loans and money.
Here is a list of eight money stories that would simply blow your mind.
1. They’re homeowners
When you take a look at most of the lifestyles of celebrities in the world, you would come to the realization that most of the celebrities actually own their homes. This ultimately became fact when the celebrity reality shows like MTV’s “Cribs” and “Keeping Up with The Kardashians” aired. But then again, you will also realize that a good number of the rich also rent their houses. Good examples are Meg Ryan and Diane Keaton. Queen Latifa, for example, rented out a loft for $10,000 a month in Atlanta.
2. They are experts at money management
When it comes to money management, you find that even Mark Zuckerberg, the young billionaire who started Facebook in his dorm room in college, turns to his financial advisors to help manage his funds. The same goes for athletes and celebrities who build their names to command certain salaries and wages. These people know exactly how to make money. But then not everybody knows how to manage the money that they have acquired.
3. They have perfect credit
Absolutely not! Well, at least some of them have good credit scores to their names. But you will find big-spending celebrities who run bankrupt all over sudden with huge amounts of debt with absolutely no way to pay up. That is when problems start trickling in for them. And, of course, their credit scores are going to drop significantly as well. Look at Lindsay Lohan, who owed $600,000 in debt in 2010. This amount required that she pay a minimum of $15,000 in monthly payments. That amount alone can cause some serious headaches just thinking about it. Nobody really knows whether she managed to clear off the debt or not.
4. They’re big spenders
For most rich folks, this notion is actually true. It is, however, not a rule to spend big if you are a super-rich dude. Yes! The moment more money start trickling your way, you will be able to buy the luxurious items you’ve always wanted. And spend like a boss. But that doesn’t necessarily mean that you have to. Warren Buffet, the third richest man in the world, with a net worth of about $63.3 billion, resides in a $31,500 home which he bought in 1958. How’s that for smart spending.
5. They’re debt free
Anyone who still believes that wealth and debt can’t co-exist needs to take some financial classes. Take celebrities, for example, big money spenders. They may spend so much sometimes that they get themselves into debt. All in an effort to try and maintain that lavish lifestyle. Mike Tyson at one point was worth over $300 million but still managed to rack up $38 million in debt I 2004.
6. They come from money
Not true. Not every rich businessman, athlete or celebrity out there came from a family of well-off parents. In fact, you will find that most of them struggled to get to where they are. Most of the rich guys out there are actually self-made.
7. They’ve never been bankrupt
If you have been reading through the article, then it would be safe to say that even the richest man in the world can run bankrupt if he/she chooses to. You simply need to start engaging in some reckless spending. Throw away some humongous stacks of cash and stop working. You will get there eventually.
8. They don’t have a budget
The ability to live carefree comes with wealth, no doubt. But still, you may end up losing all your wealth just as quickly as you have made it.