Money mantras from the rich stars
- New NPA rules: Power producers’ body accuses RBI of overruling House panel
- Asean summit ends with rebukes against trade protectionism
- E-wallet will address GST refund issue of exporters, says Suresh Prabhu
- DP World buys stake in India logistics firm Continental Warehouse
- NDA messed up economy, mismanaged Jammu and Kashmir, says Manmohan Singh
Careers in Bollywood as well as cricket are by far the most glamorous and monetarily rewarding in India. At some point or the other, most of us have thought about how the celebrities live their lives in vanity vans, five-star hotel suites, plush pads, iconic studios and cricket dressing rooms.
Much has been written and spoken about various aspects of their lives. But what about their money mantras? How do they make, save and grow their money?
As we walked into their homes and offices and on to movie sets to talk about money, we noticed that behind those lights, cameras and coveted life is a lot of uncertainty. Many of them have irregular and sporadic income. So we asked them how they plan their finances.
You might be disappointed to know that there are no hot tips, even from the hottest of stars, but plain simple money management advice—save for the future. Most of the current reigning stars say they live on a budget.
For instance, Priyanka Chopra’s money mantra is to save first and then spend, a habit that was inculcated in her even before she started earning. How do they do it? It comes from discipline, says one of the world’s highest-paid actresses, Deepika Padukone. She says this habit influences every aspect, from the simplest things like diet and sleep, to her finances.
The basic tenets of money management say that once you have taken care of cash flows, the next step should be to set up an emergency fund. Even young stars from wealthy families, like Arjun Kapoor, know that their profession is unstable and hence put together a fund.
A close look at the portfolio allocations of film and cricket stars shows that real estate is a major asset class for most of them. The investments of most celebrities, from Sidharth Malhotra to Priyanka Chopra, are tilted towards physical assets such as real estate. Though it is one of the most illiquid asset classes—that is, you cannot readily convert it into cash, mainly because the quantum is large—it is close to their hearts.
Then there are actors such as Soha Ali Khan and Parineeti Chopra, who have a well-diversified portfolio. Start-ups and new businesses have also enticed the rich. For instance, cricket icons such as Yuvraj Singh, Virat Kohli and Kapil Dev have been investing in start-ups and are open to investing in any good ideas that any of us may have.
Most celebrities are not shy of taking help from friends and family to manage their finances. They engage actively with wealth management firms too. And during the process of wealth creation, they too have made big mistakes, whether it’s producing expensive films that tanked at the box office or investing in assets without enough due diligence.
What we offer in this edition is a broad sketch of celebrities’ lives, their savings plans, investments strategies, consumption patterns, mistakes and philanthropic activities.
Hopefully, their stories in this edition will inspire you the way they have inspired us.