Celebs take safe road to investments
Celebs are taking the safe road to investments to protect themselves when income is not coming in. They work on a variety of films and movies. Their income can vary a great deal over the months and even years. Since their income is so irregular, taking the safe road will help them ensure that they still have cash when they are not working or are between projects. When a TV show that has been running for several years suddenly is terminated they are out of a job. It can take some time to line up another show or film, or even do advertising. They need to make sure they have the cash to get them through the slow periods.
Safe Road to Investments – Variable Income
When they are working the money is fantastic; when they are not working it can be pretty scary! They may be still spending as if they are working and the money is flowing out. Many people, the writer included getting a little excited when the big money is flowing in. It is easy to forget that this is a temporary situation. Suddenly you are spending money like crazy. Before you know it you are living from paycheck to paycheck. Spending huge sums on cars and homes, vacations that are over the top expensive, and many more. When the paychecks stop coming, there is a scary dose of reality. Unless you have invested carefully and planned for this situation.
Many have learned to invest wisely and conservatively to make sure there is money to carry them through the dry periods. By investing in conservative funds and even bonds and GICs, there will always be funds available to help them through these situations. Diversity is also important as well. Never place everything in one investment, spread it around in conservative investments. Even some real estate can do well, but real estate is not very liquid, especially if you own an expensive home. It may take as long as six months to sell a home that is listed at a seven-figure rate.
Safe Road to Investments – Going Broke
We have all heard of a few stars and celebs who have made a lot, spent a lot, and are now broke. The same can happen to the average consumer unless they take control and manage their spending! The same situation applies to consumers who work at companies and suddenly find themselves laid off. If you have been spending paycheck to paycheck, then you may not have any savings that can get you through the period between jobs. If Celebs can plan for the future, why can’t the average consumer also plan for the future?
All it takes is to set aside 10% of your income every week for a rainy day to use a popular expression. When the time comes that you have a cash flow emergency due to job loss or a major medical emergency, the money will be there for you. Rainy day funds should not be used for vacations, buying cars, or other such items. This money is there to help you get through those times when there is no money coming in to buy groceries and pay the rent or the mortgage payment.
While 10% may seem like a lot, once you get started and get used to living on 90%, it actually becomes quite easy and most people after a while do not even miss the money. They really get used to living on 90%, stretching their paychecks rather than spending the entire amount every week. Sure you may have to do without some things, but that is really part of budgeting and planning for the future.
Follow the lead of the Celebs, we think that many of them have it right! For more investing information, click here.
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