by Deborah Owens,
It seems not a day goes by without hearing about a celebrity who filed for bankruptcy or is being sued for child support. Most recently, former ER Star Mekhi Fifer was in the news when recent court filings revealed that he owes more than a million dollars in back taxes and is in arrears on child support payments. Fifer is not alone. He joins the ranks of hugely successful stars like Lauryn Hill and Toni Braxton, mega stars who were unable to avoid financial distress in spite of their tremendous success. So the question is: Does fame really equal fortune?
Considering the popularity of reality shows like the Real Housewives franchise, America’s Got Talent and one of my least favorites Jersey Shore, it’s clear that many people believe that fame is the path to riches. What I know to be true, based on my years as a financial advisor and host of a personal finance talk show, is that more money will not solve financial woes. To the contrary, if you don’t know how to manage your resources, in the words of Biggie Smalls, “Mo’ money…Mo’ problems”. The bottom line—-no matter what your income, you need to have a system for tracking your income and expense or cash flow.
Here are some tips for creating a wealthy system that can give you peace of mind and set you on the path to financial security.
It’s not how much you make, you have to learn how to keep it. ~Shaquille O’Neal
Wealthy System Tip #1 – Use Online Banking
Online banking: Most of the major banks have online banking suites that allow you to manage your cash flow and pay bills online. These services also provide you with bill payment reminders which ensure that you pay your bills when they’re due. Timely payments will prevent late payment fees, interest rate increases, and boost your credit score. In some cases, you can consolidate your outside investment accounts and get an overall picture of your net worth.
Wealthy System Tip #2 –Use Financial Apps
Financial Apps like www.mint.com are free and allow you to create goals, a budget, and provide you with a daily update on your spending and progress toward meeting your financial goals.
Wealthy System Tip #3- Use Financial Software
If you are willing to pay for programs like Quicken Personal Finance, the software allows you to consolidate the information from all of your accounts in one place. You can have your bank and investment accounts automatically downloaded to the program and write checks.
My advice to celebrities is to take a page out of the playbook of WNBA Hall of Famer and star of “Mom’s Got Game on OWN, Pamela McGee. After her son JaVale McGee signed a 42 million dollar contract with the NBA she become a wealth manager who helps other sports figures and entertainers.
To learn how you can transfer wealth to the next generation listen to my interview with McGee. In the words of another hall of fame basketball great Shaquille O’Neal, “It’s not how much you make, you have to learn how to keep it.”
Deborah Owens is the Wealth Coach. She is the author of three books; most recently critically acclaimed, A Purse of Your Own: An Easy Guide to Financial Security, published by Simon and Schuster. Owens is a 20-year financial services industry veteran and former vice president with Fidelity Investments. Ms. Owens is a media personality who has been a contributor to CNN, ABC News Now, Shape, Essence Magazine, Ebony, Black Enterprise and is host of Wealthy Radio, which airs on WEAA an NPR affiliate in Baltimore, MD. Visit her website athttps://deborahowens.com for more wealth building tips and tools.