Myths about the wealthy being overthrown
8 myths about the wealthy and the famous ones who knock them off. The stereotype wants the wealthy to spontaneously spend but also to be the owners of the investments. But reality is not so. Business Insider presented the 8 biggest myths about the rich.
1. They have their own homes: If one sees reality shows like MTV’s “Keeping Up With The Kardashians” or “Cribs”, he can only conclude that wealthy celebrities are in possession of palace- , in Malibu or New York. The reality is that many, but not everyone, the rich have their own homes. Celebrities such as actors Diane Keaton, Meg Ryan and Jane Fonda are living on rent. Queen Latifah gives $ 10,000 a month for a loft of 430 sq. M. in Atlanta.
2. They are experts in money management: Most of the time, those who know how to make money do not know how to manage them. So how are the rich richer? Even businessmen such as Mark Zuckerberg are turning to professional consultants to manage what they have brought out of their success.
3. They have excellent creditworthiness: We usually think that the rich are the best customers of the banks, since they have excellent creditworthiness and credit history. But the truth is that many wealthy celebrities have gone bankrupt or even have been immersed in debt. Lindsay Lohan is an example, as he claims he owes $ 600,000 in credit cards, which means that every month he is called to pay a minimum $ 15,000.
4. They spend a lot: Zuckerberg is famous for the gray T-shirt and hooded sweatshirts that have become his trademark, but he is not the only wealthy businessman who is surprised by his austere life. Warren Buffett, the world’s third richest man, with $ 63.3 billion worth of wealth, rising by $ 37 million each day, is still staying in the same house he bought in 1958 instead of $ 31,500.
5. They have no debts: The belief that wealth and debts can not coexist is contradicted by many examples. Not only is Lohan owed. Professional boxer Mike Tyson owes to the tax office ($ 38 million, with 2004 figures), although he has $ 300 million in assets. Other celebrities sink into debt are actors Nicholas Cage and Burt Reynolds and photographer Annie Leibovitz.
6. They come from affluent families: Although the heirs of affluent families start with a lead in the riches race, the self-made creatures that started from scratch confirm the American Dream. Starbucks CEO Howard Schultz, for example, grew up in Brooklyn’s working residences and Oprah Winfrey was born in a poor Mississippi family. Forbes counts Schultz’s fortune at $ 2.1 billion, and Winfrey’s $ 82 million.
7. They have never failed: Some of the most successful people in the world have lost everything at some point. Among those who recovered after a bankruptcy are Henry Ford, Walt Disney, Milton Hershey and H.J. Heinz. All of them have created brands that dominate their markets until today. Real estate tycoon Donald Trump has broken the record of bankruptcy, having declared a stoppage of payments four times, in 1991, 1992, 2004 and 2009. In 1990, Forbes counted Trump’s property at $ 500 million. Today, the entrepreneur has over $ 4 billion.
8. There are no restrictions on their spending: Most would think that the rich live unmarried, spending unlimited amounts at will. But those who were wise enough to build a fortune usually realize that money disappears as easily gained. Actor Keira Knightley has revealed in an interview that she lives at $ 50,000 a year, spending $ 50 million a year despite spending $ 50 million. “My parents were actors and writers, and that gives you the mentality, okay, I have money now, but they can disappear,” Knightley said.