Taylor Swift is known for a lot of things in the entertainment industry. She is a certified multi-platinum selling artist who has been nominated for a multitude of awards, including Best New Artist at the 50th Grammy Awards. But one thing many people may not know about Taylor Swift is that, despite working in an industry where many celebrities go broke at the drop of a hat, she is very responsible with her income.
In fact, there are many financial lessons we can learn from this young starlet.
Taylor Swift Net Worth
Taylor Swift is no stranger to earning a good income. It probably doesn’t hurt that the superstar is great at selling records. Last week, on the first day of the release of her new album “Red,” she sold more than 262,000 copies on iTunes.
However, as we all know from the bankruptcies of artists like Billy Joel, TLC, Toni Braxton and Willie Nelson, selling thousands of records doesn’t equal financial freedom.
Luckily, Taylor Swift has yet to suffer the fate of many other celebrities. According to May 2012 figures from Forbes Magazine, she earned $57 million last year alone.
Others estimate Taylor Swift’s net worth rests around $165 million as the third highest-paid woman in Hollywood after Oprah and Britney Spears. Not bad for a 22-year-old with an amazing career on the horizon.
5 Taylor Swift Smart Money Moves
Though Swift wasn’t a winner at the CMA Awards 2012, she’s a winner when it comes to managing her finances. Here are five ways we could learn a thing or two about managing money from Taylor Swift.
1. Find a Good Money Manager
A large part of Taylor’s financial success can be attributed to her finding a great money manager before her career even took off. She was quite successful at the age of 16, so how did she pull off a feat many of those who are decades her senior can’t? Well, it turns out Taylor Swift’s dad is also a Merrill Lynch adviser in Nashville who has worked at the company for over 30 years.
Mirror Taylor Swift by finding someone you can trust to manage your income. That could be a professional money manager, trusted family member, or even yourself. No matter who manages your cash, the key is keeping track of your income and expenses so that you don’t worry about money slipping through your fingers.
2. Think Strategically about Your Money
Taylor made headlines when she shared her decision to sell her new album “Red” in some pretty unconventional places, including Papa John’s and Walgreens. While some may think this route is plain odd, others considered it to be a smart move, as she has plenty of fans who likely frequent these locations and may appreciate the option of purchasing her CD while doing other shopping.
To strategically use CDs in your own financial life, save money in safe deposit products like certificates of deposit (CDs). Who knows, with the money you earn from your investment, you could boost your budget enough to thank Swift for the idea and pick up one of her albums.
3. Don’t Be Afraid to Buy Used Items
Another tip you can borrow from Taylor Swift is buying used items. She loves spending money on retro looks and, according to her official website, goes “into a trance when I’m in an antique store.”
Great, unique items can be found in thrift stores, antique shops or even at yard sales, sometimes at a fraction of their original cost. If you don’t like buying used, you could also save a few bucks by opting to purchase generic products instead of always springing for name-brand goods.
4. Think About Your Financial Future
In a recent Nightline interview, Swift admitted that she’s a bit of a worrywart when it comes to her finances. “I worry about everything,” she acknowledged.” Where am I going to live? What about this and that and that?”
While it’s not advisable to worry about all aspects of your life, it’s a great idea to put some plans in place, particularly in relation to your finances. Have you set aside money to purchase a home? Do you have retirement savings set aside? The more you think about your future now, the less you will have to worry about down the line.
5. Create a College Fund for Your Kids
Recently, Swift said she was already saving for her children’s college tuition, even before having her first child! She has started setting aside money in a savings account so that her future kids will have enough money to pay for their higher education costs.
With tuition costs skyrocketing every year and student loan debt surpassing $1 trillion, it’s always a good idea to start investing in a child’s education as soon as possible.
It’s great that Taylor Swift makes smart money moves that help her hold on to her enormous wealth. If you follow her lead, you may find that you too can have a comfortable financial life in the years to come.