Finance: Cher's Financial Journey and Insights
Uncover Cher's Money Lessons from Her Memoir
Feeling Safe
Cher's upbringing in a financially struggling family instilled in her a sense of insecurity. When she achieved success, she found comfort in having backup products. "I was so afraid of becoming poor again that I started buying two of a few key household items. There was no logic to it, but it made me feel better," she writes. This fear of losing what she had led her to make certain financial decisions that may seem odd but were driven by her past experiences.As a child, she was accustomed to losing things and having to trade down. This mindset stayed with her even as she became famous. Her need for security manifested in her purchasing habits, showing how our past can influence our present financial decisions.
Overspending
In the late 1960s, Cher and Sonny Bono found themselves owing $270,000 in back taxes. Cher realized that she had spent a similar amount on her dream house. "That's how people in the entertainment industry get into trouble. You come from nothing and suddenly have all this money, thinking it will last forever," she writes.However, life had other plans. In 1980, Cher was on the brink of bankruptcy but was saved by a buyer who paid in full for her apartment buildings. This experience taught her the importance of having a financial backup and not overextending oneself.
Financial Acumen
Cher admits that she was not initially good with money. She didn't consider Sonny Bono's financial skills or the need for a business manager. Later, with the help of David Geffen, she began to learn about handling her finances.Her lack of financial acumen initially led to some difficult situations. But by relying on Geffen and taking steps to improve her financial knowledge, she was able to turn things around. This shows that it's never too late to learn and improve one's financial situation.
Checking Contracts
After separating from Sonny Bono, Cher learned a harsh lesson about contracts. Geffen informed her that despite being a duet for years, she was far from an equal partner. "The contracts he had me sign were designed to strip me of my income and career rights," she writes.This experience made her more aware of the importance of reading and understanding contracts. She quickly took action by firing her managers when she discovered they were making more money than her. It's a lesson that many in the entertainment industry can learn from.
Diversified Portfolio
When Cher had spare cash, she invested in apartment buildings. This decision not only taught her a lesson about not overextending herself but also showed the power of holding assets.The buyer's decision to pay in full instead of installments saved her from bankruptcy. This shows the value of having a diversified portfolio and being able to make smart investment decisions. It's a lesson that can benefit anyone looking to secure their financial future.
Helping Family
After her career took off, Cher supported her mom financially and helped her open a store. However, the store was not successful, and Cher learned the importance of balancing family support with financial responsibility.Her desire to help her family was genuine, but she also had to consider the financial implications. This shows the delicate balance between personal and financial life and the need to make decisions that are both beneficial to loved ones and sustainable financially.
Cher's memoir offers a unique perspective on money and financial management. Through her experiences, she has learned valuable lessons that can inspire others to take control of their finances and avoid the pitfalls she has faced.