Financial advice for rock stars and other Southern Californians

In case you missed it, U.S. News & World Report's "How to Go Broke Like a Rock Star" last week used the housing-related financial troubles of celebrities as an opportunity to explore sound financial strategies.

Among the tips from experts for those with sometimes large and fluctuating incomes, like Southern Californians working in the entertainment industry, is advice that could apply to just about anyone:

--Make your money last and have some for that proverbial "rainy day" by spending more modestly than your last paycheck allows.

--Have a plan in place in case of disaster, such as job loss or illness.

--If you have an unpredictable income, pay off debt as soon as you can afford to do so. Or better yet, pay cash and avoid a mortgage altogether.

--Save at least 8% of income for retirement.

In light of current financial uncertainties, those would all seem to be bare minimums.

--Lauren Beale

Thoughts? Comments?

Photo: Just say "no" to luxury items? Credit: Robert Lachman / Los Angeles Times 

Comments

[Bubblewatcher]

I'm inclined to hoard cash at this point, myself. All debts paid off, 10% to the IRA account.

It seems to me that pretty much everybody's go "unpredictable income" these days.

[MyLessThanPrimeBeef]

--Have a plan in place in case of disaster, such as job loss or illness.

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Or when Wall Street bankers suddenly are in need of your charitable donation.

[Adam]

Boy.. what kind of financial understanding do most folks have if this sort of sage advice is aimed only at a niche market (celebrities, those with fluctuating incomes, etc.). I'm glad I didn't have to pay to have this financial wisdom bestowed upon me.

[Nelcisco]

I like the Jay Leno lifestyle, other than his exotic car collection, on any given day he's buying a $5 value meal at a Burbank Mcdonald's, I met him once at the one on Olive & Verdugo in line and I thought to myself,"if I were making about $2.5 million a month I probably won't be coming to McDonald's", what a testimony

[sheila]

i like that they are still recommending putting money "into retirement," the only thing that is losing money faster than our real estate is our retirement income. what a crock! S & P 500 down over 25% in less than a year, NASDAQ, DOW, Russell, all down over 20%. international indexes? All tanking. Bonds? many are PAYING OUT NEGATIVES.

WHERE IS ALL THE EFFING MONEY??? war profiteers, big oil, big bankers, big insurance, big agra, big pharma. we are no longer a democracy or a free market. we are unwitting and unwilling bottom-feeders in a massive pyramid scheme orchestrated by the neocons.

oh, and bubblewatcher, that cash you are stashing in the mattress? losing 9.2% annually via inflation. you can't win.