What You Can Learn About Personal Finance From Real Housewives
There are two reasons why someone is watching Real Housewives franchises: money and drama .
Any good Housewife fanatic googled “housewife’s name + net worth” to see how much you need to save up for a PJ flight. When you look at the wealth of actors, it is easy to see that there is a huge difference in wealth among people who are usually considered “rich.”
So how do you become “rich” like a real housewife? Well, this can not mean that you really so rich. After examining the evidence gleaned from countless episodes with housewives , here’s what I learned about how to live a luxurious life (or more often, what not to do to avoid serious debt).
You can never tell anything about someone’s financial condition by looking at them.
The people on these shows need you to think they’re fabulously rich. As an example, let’s take a look at Dorit from The Real Housewives of Beverly Hills .
No, let’s take a look at her.
Chanel is literally dripping from her ears . Yet she and her husband P.K. go through public debt litigation . They risk going bankrupt and have put up their $ 8 million home to pay off (which may not even be enough).
So the first lesson in finance: This is all for the show. They need to shop and buy fancy cars to build their own personal brand. Nobody should spend like they do.
Spend only the money you have
Even with their inflated salaries on the show (Nene from Atlanta ‘s Real Housewives reportedly earns $ 2.75 million per season ), many actors are still victims of debt. Their finances are quite complex – including trusts, wills, business agreements, and nasty divorces – but the lesson remains the same for everyone: you might think you can go far on credit, but that’s an illusion.
Imagine you make $ 1.3 million in one season (like Phaedra from Atlanta ), buy a house for $ 1.9 million , and then the next year you get kicked out of the show and forced to sell the house at a loss . Income can change quickly and you will need an emergency fund to keep making your mortgage payments in case you lose your job.
An additional lesson here is to make sure that your wealthy spouse is truly rich , that you have a good marriage contract, and that you are not listed as responsible for their poor business decisions. I learned about this from Sonya in New York , who after her divorce only got a whole townhouse in the Upper East Side (which she now rents out for additional income), and from Taylor of Beverly Hills , who was charged with a multimillion-dollar lawsuit (and no trust fund she was promised!) after her husband’s death. Basically, if you rely on someone else for the breadwinner, make sure you understand their finances.
Everyone wants to own a business
New York-based Bethenny Frankel makes $ 1 million per season but is valued at $ 25 million thanks to her Skinnygirl cocktail empire. When she sold the company in 2011, she earned 25 years of high-paying jobs.
This is why all housewives try to start their own business. We saw retail stores (Kyle from Beverly Hills ), a line of rosé wine (Lisa V. from Beverly Hills ) and something called ” L’Infinity Dress ” (LeAnne from Dallas ), all in an attempt to make the business a hit. … and sell it for hundreds of millions of dollars at a time.
While owning stock in a business can lead to wealth far beyond reasonable spending, it also carries significant risks. As we learned with Sonya, a failed venture can mean losing all the money you put in (and if you don’t have a housewife’s fortune, it can mean all your money). So don’t be tempted to launch a line of toasters if you don’t have experience in small home appliance manufacturing.
There will always be someone richer than you
In other words: Set realistic financial goals and don’t base your success on others.
While most of these actors gloat over their wealth, they continue to receive paychecks from the show and receive money from Instagram ad deals, live performances, and further business endeavors. But why? Aren’t they rich enough? Shouldn’t they just retire now?
Of course not! They are on the show to get more money and more fame! These people did not come here to have enough funds to meet the annual IRA contribution limit and live an easy life.
Even with all of these sources of income, none of the actors are on the Forbes list of the richest women to make money . (Adrienne of Beverly Hills , the richest franchise in history, doesn’t fit because she inherited most of her wealth.)
So why do they insist on working when they are already rich and famous and most of them haven’t had a real job since the 90s? The obvious answer is insecurity. They spend tons of money on plastic surgery, fashion, and glamor teams, and wealth is another facet of their appearance. Of course, they also need money to maintain that façade (pun intended), and they always only compare themselves to the other cast members, so if you can’t be the youngest or hottest, you might as well try to have a better home. and the most beautiful wardrobe.
And what is the lesson from their gluttony? Greed is a powerful mistress (pun intended also). We would all think that if we had this money, we would donate half to charity and never work again, but even the taste of wealth and fame makes people do crazy things. So let’s not forget to put everything in perspective: we have our problems, and they have theirs. And our problems aren’t usually worth $ 7 million.
Money can’t buy you class (or happiness)
As I said, we watch these shows for the drama . It’s not about self-satisfied people who can relax without caring about the world. So always remember that the very rich are not necessarily happy , and if they were happy , then Bravo would simply be the best chef every night, for which I would still be looking.