Let Bieber be your financial strategist

By Vikram Barhat | January 7, 2013 | Last updated on January 7, 2013
2 min read

Justin Bieber may not know the exact number of zeros in his bank account, but he’s no slouch when it comes to money management.

A report issued by Go Banking Rates discovers fame hasn’t dulled his financial instincts, and he amply proves that by scooping up Best Celebrity Financial Strategist of 2012, accorded by the Los Angeles-based personal finance website.

Not a mean achievement considering penny-pinching is as rare among A-listers as dollar stores in Beverley Hills.

An article in Forbes magazine pegged the singer’s last two years’ earnings at $108 million.

Read: 5 tips for personal finances

One of the world’s highest-paid star, he was judged the most financially-savvy entertainers of 2012 due to the following factors:

Informed financial decisions

The Forbes article quoted the singer as saying, “I’m not going to invest in something I don’t like; I have to believe in the product.” He certainly showed plenty of faith in a dozen tech startups in which he holds stakes.

“Like Bieber, consumers who investigate and build confidence in items before parting with their money decrease their chances of making poor financial choices down the line,” says Stacey Bumpus, a columnist at Go Banking Rates.

How to grow money

One of the fundamental concepts of personal finance puts saving money before spending. However, those with real money smarts make their savings grow and diversify income sources.

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Bieber has demonstrated he can do both by raking in $30 million through his biopic, Never Say Never, and has also launched his new fragrance, Someday, which brought in an estimated $60 million in sales.

As one of Canada’s most recognized exports, Bieber’s financial acumen can serve as a reminder that true financial wellbeing is achieved not just by making money, but also by managing it well.

Read: Year-end tax tips and festive guide to savings

Bieber, it appears, is part of a growing trend among Hollywood celebrities discovering that savings is a potent hedge against the vagaries of stardom.

Actress and singer Zooey Deschanel, who recently made the news for her high-profile divorce, has also gotten media attention for her financial savvy.

According to a report in Yahoo! Finance, she has more than $1.5 million in the bank, about $1.6 million in stocks and other investments, and property worth close to $700,000. And while she still spends $2,000 a month on clothes and another $1,500 a month on charities, she has zero credit card debt.

Vikram Barhat