One of the things we find most fascinating about celebrities is their networth. We marvel at the money they get paid for their work. We love to see their lavish lifestyles — from what they wear on the red carpet to the yachts they sail on.
We also love indulging in seeing the crazy things that celebrities spend their money on!
But how do you go about calculating networth when looking at celebrity incomes?
This article will discuss how is networth calculated so you can understand how these celebrities make bank!
What Is Networth?
Networth is a person’s assets and income minus their liabilities. So, if you have $100,000 in your bank account and a further $100,000 in gold bullion but you owe a mortgage of $75,000 your networth is $125,000.
It’s not always easy to know celebrity networth, even for celebrities who are open with their wealth or flaunt it without care. One can know how much a celebrity gets paid for their work.
For example, one can know some of the richest comedians by their income and their assets. You can look at Jerry Seinfeld and see how much he earned from each episode of Seinfeld.
He’s also known for his lavish car collection. These are assets but can also be liabilities. Even if they get paid off, one cannot know how easy it is to sell them. That’s why there’s always a grey area between what constitutes a liability versus an asset!
Celebrities primarily earn their income from their work. Comedians primarily earn from stand-up performances. These can include solo shows, group performances (as in The Original Kings of Comedy), or if one comedian opens for another comedian.
If these comedy performances get sold on DVD or streaming, comedians usually will earn a percentage of the profits every time a DVD gets sold or the show gets streamed on TV or a streaming service.
Many actors/actresses take a share of the film’s profits in order to earn more on top of their salary. This means that when the film earns a profit, the actor/actress gets an additional income.
The smartest celebrities are also the best investors. For example, rapper Nas had made a fortune due to his investments in Ring and Pluto TV.
Celebrities get known for their assets and this is where the future of their networth gets tricky. One cannot know if Jerry Seinfeld’s car collection will rake him a fortune later on. Though it’s possible that Rowan Atkinson can make millions of pounds if he sells his supercars.
Of course, a celebrity can go bankrupt if they don’t pay off their assets. Actress Kim Basinger invested in an entire town hoping to make it a tourist attraction. Sadly, this is what bankrupted her, and she had to sell her ownership.
As not all celebrities know how to manage their assets well, the smartest ones always hire the best financial advisors to guide them.
Try Calculating Networth
Now that you know about calculating networth when it comes to celebrities, why don’t you figure out what your own networth is? Use the lessons of your favorite celebrities to figure out how you can maximize your networth and not make the mistakes that they did.
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