When we see rich people, either in our daily lives or in the media, we have assumptions about them. The monikers of wealth – designers bags, expensive sunglasses and luxury vehicles – usually help us identify the status of that individual and make seemingly logical assumptions about their lifestyles.The thing is, not every wealthy person is a big spender with an immaculate financial history. In fact, being wealthy doesn’t mean you necessarily have any clue how to manage your personal finances.
Here are eight stereotypes about rich people and names you know who break the mold.
1. They’re homeowners.Celebrity reality shows like “Keeping Up With the Kardashians” and MTV’s “Cribs” have confirmed our assumptions that rich celebrities inhabit the palace-like homes and condos of Malibu and New York City. Yes, many rich people – celebrities or not – own their homes, but not all of them do. In fact, several celebrities, including actresses Diane Keaton, Meg Ryan and Jane Fonda, have paid rent for their residences.Queen Latifah rented a 4,700-square-foot loft in Atlanta from Fonda, in fact, for $10,000 a month, according to Zillow. For celebrities and businessmen who change their residences regularly for work, renting might be a better financial option. Although, at $10,000 a month we can’t say Latifah’s rental is low budget.
2. They’re experts at money management.Wealth, if it’s not inherited, is often the product of making it in a business. Whether you’ve built your name up to command a certain salary, as is the case with athletes and celebrities, or built up a company, honing that entrepreneurial mindset is often key to accumulating wealth. However, just because someone knows how to acquire money doesn’t mean he knows how to manage it.Wonder how the rich continue to get richer? They can afford financial advisors who make sure their money works as hard as they do. Even entrepreneurs like Mark Zuckerberg, who started Facebook from his college dorm room, turn to financial advisors when it comes to managing the product of their success and business savvy. Divesh Makan advises both Facebook founder Mark Zuckerberg and chief operating officer Sheryl Sandberg on their financial decisions.