They’re beautiful, rich, and famous but how much do celebrities really have? The amount of money that celebrities make can be staggering, but does this actually translate into the number of zeros on their bank account? It’s no secret that the rich keep getting richer and that reality TV stars can cash in big time when their show is over. However, it might surprise you to learn that there are some celebrities who have a net worth less than $1 million! You’ll probably recognize some of the most impoverished celebrities on this list and likely wonder what they did with all their money.
10% is from their career
Each Celebrities net worth is difficult to calculate and answer since their wealth can come from a number of sources including talent, investments, business ventures and endorsements. Most celebrities have around 10% of their net worth tied up in their careers. The other 90% can come from all the other places – like investments, real estate, like new metro city mandi bahauddin etc. It’s not uncommon for celebrities to make less money from their work than they do from other deals and things going on in the business world.
20% is from their inheritance
One of the most common celebrity misconceptions is that they are just given all their money by their parents or simply have it handed to them. To the contrary, many celebrities have started from the bottom and have faced hardship to get where they are today. For example, Mark Zuckerberg inherited $2 million from his father but used that money to start Facebook–a company which is now worth billions.
30% is from strategic investments
A common misconception is that many celebrities are born rich. In reality, it’s more likely they are as smart and savvy with their money as the average millionaire is. Many of these stars invest much of their earnings in strategic investments like stocks and real estate because they know just how quickly those savings can disappear if left unprotected.
35% is from royalty payments
It takes an average of two years to receive a royalty payment. For example, Taylor Swift’s 1989 album released in late 2014 will only start generating royalties in 2017 and her next album won’t hit the market until 2020. So while royalty payments are a form of celebrity income, they’re not their only source of revenue. As previously mentioned, most celebrities have endorsement deals with big-name brands that give them another avenue for earning money. Additionally, many celebrities own small businesses on the side: Oprah has her OWN network and Tom Hanks is co-owner of four Wendy’s franchises in New York City.
25% is from appearing in ads
Celebrities make the bulk of their income from appearing in ads, many of which are for luxury brands. In 2015, Justin Bieber made $9 million USD from being a Calvin Klein model. Madonna was paid $5 million to promote Givenchy perfume and Beats by upcuz.com. When celebrities endorse or sell products, they can earn as much as 100% of profits – so these companies are willing to pay up for celebrity name recognition.