Disclaimer: We adhere to strict standards of editorial integrity to help you make decisions with confidence. All links marked with an asterisk ( * ) are paid links.
Hollywood star Ben Affleck once revealed that he and close pal Matt Damon blew through their earnings from iconic 1997 film Good Will Hunting in record time.
“I was like, ‘We are now rich for life. ‘My needs are over. I will never have to work again,’” recounted the acclaimed actor and filmmaker — who now has more than 60 film credits to his name — in an appearance on The Drew Barrymore Show.
The pair of then-20-somethings sold the film for $600,000 and split the cut. However, they each paid $30,000 to their agents and $160,000 in taxes — leaving them with $110,000 each.
Don’t miss
So what did they do with their profits? Affleck and Damon decided to splurge on two $55,000 Jeep Cherokees, bringing them down to just $55,000 each.
“Naturally, we decided to rent a $5,000-a-month party house on Glencoe Way by the Hollywood Bowl and we were broke in six months,” Affleck continued.
While they’ve both clearly landed on their feet despite their initial poor financial planning, here’s how to make your money last — even if you don’t have another Academy Award-winning project up your sleeve.
1. Pay off any debts
First off, take care of the bills — whether they’re from your film agent or your credit card company.
Remember that credit card interest adds up over time, so it’s important to pay your bills in full and on time each month. If possible, try to take care of your highest-interest debts first, because the longer those hang around, the more they’ll cost you.
If you’re currently paying off multiple debts, it might be worth rolling them all into a single debt-consolidation loan* with a lower rate. Depending on the amount you owe, you could be save thousands on interest payments in the long run.
You can use a free online service called Credible to compare loan rates in minutes* and find the option that will save you the most.
2. Earn some passive income
Finally, instead of burning through your paycheck every month, find simple ways to boost it on the side. Dumping your cash into random stocks you heard about on Reddit isn’t a smart strategy — but there are other passive income plays that can help you beat the market.
As an investment, prime commercial real estate has outperformed the S&P 500 over a 25-year period. And thanks to online platforms like First National Realty Partners, you no longer need to be a millionaire to get into the real estate game. You also don’t have to be an investing genius to build a solid portfolio — FNRP’s team of experts will manage every step of the process for you.
Fine art is another alternative asset that used to just be reserved for the super-wealthy, but has recently opened up to everyday investors.
A platform called Masterworks* will let you invest in shares of paintings by iconic artists like Banksy for a fraction of the cost it would take to buy a single piece.
You don’t need millions* to own a piece of fine art — and then reap the rewards when it sells.
Read more: Retire richer — why people who work with a financial advisor retire with an extra $1.3 million
3. Plan for retirement
When you’re young, your vision for retirement might still be a little hazy, but the sooner you start planning for your future the better.
Do your research and pick out some safe, stable investments to start out with. If you’re looking for some expert guidance on your portfolio, WiserAdvisor* offers a free service that will match you with a vetted financial advisor best suited for your needs.
And if you can’t afford to set aside thousands (or even hundreds) for retirement right now, you can still get started with just your spare change. A micro-investing app called Acorns* will round up your everyday purchases to the nearest dollar, then invest the extra pennies into a diversified portfolio.
You can also set up recurring daily, weekly or monthly deposits to help grow your portfolio faster, and you’ll get a $20 bonus just for signing up*.
4. Don’t neglect your savings
Next lesson from the Good Will Hunting boys: Don’t drive through half your earnings for a new set of wheels. Affleck and Damon would have benefited from setting some of their money aside instead of splurging on a pair of matching Jeeps.
Unexpected expenses are a part of life, and having a cushion of cash available for emergencies is never a bad idea. Plus, if you park your emergency fund in the right place, your savings will actually grow on their own.
Look for a high-yield savings account with low fees (or no fees) and a decent interest rate. Check out our list of the best savings accounts for 2024. It’s possible to find interest rates higher than we’ve seen in years, which will help your money keep up with inflation.
What to read next
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Credit: Source link