Beware of the smoke and mirrors. Having what seems to be a wonderful lifestyle does not mean the same as wealth. Lamborghini’s and Maserati’s, expensive shopping trips and exotic vacations do not equal financial freedom. Wealth building is a process that is intentional and thought out. Having a nice car and experiencing a beautiful vacation is fine, but these things hold no weight in the future. You cannot pass down the experience of a vacation, and everyone knows that a car loses its value the minute you drive it off of the lot. Highly paid entertainers are often paraded before the public as examples of economic success, but beware of the smoke and mirrors.
High earners often get caught up in some version of “The lifestyles of the rich and famous.” Purchasing vanity products can lead a high earning person into a high consumption lifestyle that can often lead to bankruptcy of some sort. There are millions of people lined up waiting for their big break to hopefully become the next star, and command millions of dollars for a performance. Not to mention that the entertainment business is designed to suck the creative talents from people while gaining the lions share of the revenue. Most will not make it, and the ones that do make it will not last long. They would be wise to learn the basics of business and contracts to start. Most entertainers are not business people, so they start off at a disadvantage. When they start to make some money, they often wind up living paycheck to paycheck similar to most working Americans, except their checks may be a little bigger. Maintaining the image of a successful person in the entertainment business is where the smoke and mirrors come in.
It is easy to spend your life trying to keep up with the Jones’ when the Jones’ are probably headed for bankruptcy. You see these black entertainers that pass away and their estates do not match their lifestyle. R.I.P to Michael Jackson, he was a good example until his untimely death, and the tide changed. Mj was still going on spending sprees that he could not practically afford shortly before his death according to his financial records. He had suffered some financial set backs due to court cases and the such, but his name could still command millions. This is partially why he agreed to his final act. Of course his estate has grossed millions since his untimely death. Sammy Davis jr. passed away leaving his family in debt after 60 years in the entertainment business. Redd Foxx died owing the I.R.S millions. Maybe the next generation of famous entertainers can be wiser. We have the information to help them make wiser decisions.
The high paid entertainer is often the role model for the thousandaire living pay check to pay check, consuming high-priced vanity products with the appearance of wealth. Having the appearance of wealth and actually being dedicated to a lifestyle and discipline to actually produce long-term wealth are two different things. Do not fall for the smoke and mirrors…