Financial Planning for a well qualified, salaried individual is fairly simple. If he does not jump around too much – has one/ two kids, buys a house, car, pays for an occasional holiday for his parents….then just do a couple of SIPs, take a term insurance, and well life is done.

However, if you have people from other industries and those who are not EMPLOYED, life becomes far, far more difficult.

Look at the careers of the following people in the sports and entertainment industry – Sachin Tendulkar, Vinod Kambli, Ravi Shastri, Laxman Sivaramakrishnan, Sourav Ganguly, Irfan Pathan, Ajit Agarkar, Priyanka Chopra, Kareena Kapoor, Neha Dhupiea, Dipti Naval, Sarika, Amrita Rao, ….(this list was chosen with a little help from a film mag editor).

Obviously these people can be categorised in the following manner:

Early success and stayed there: Sachin, Sourav, Ravi, Priyanka, Kareena

Early success and then slipped: Vinod, Laxman, Ajit, Mohd. Kaif,

Slow success, but earned well: Neha

Reasonable success, earned modestly: Amrita, Dipti Naval, Sarika,

Fairly obviously there is no one formula that would have worked for all of them. It was easy to categorize them as “sports guys” or ‘film guys and film girls’…

For people like Sachin the income from the sport (main income) was itself so high that his investment income could have gone to build other sources of income. Same story for Sourav Ganguly also.

Now if you see people like Vinod Kambli (let us assume he comes from a lower middle class background) – he got too much of financial success. Now this success would have blinded him and he could have exhausted his money – too fast – and may not be now in a position to live on his passive income. Mohd. Kaif may now not play much for India – sounds cruel, but the reality seems to be that. So for Mohd Kaif his earnings from domestic cricket is an important source of income. The income that he earned from international cricket would not have been too great to create a corpus for his entire life.

Of course the cricketers were rescued by IPL (Indian Premier League) – so Mohd. Kaif, Ajit Agarkar, Pathan, have got a fantastic lease of life and they could be earning at least Rs. 2-4 crores per annum – which is a fantastic amount of money in any part of the world.

Remember sportsmen also have very high expenses – right from some personal coaching, travel, communication, etc. For e.g. if Irfan Pathan wants the services of a coach in South Africa, he will have to fly to SA, stay in a decent hotel and engage the services of a good coach. Similarly dietician, doctor, …etc. nothing comes free.

In case of women filmstars who do not marry or marry a bum who cannot handle money, their problems are also magnified. At some stage in life they have to take a call that they have to quit…When to take that call is really difficult to say! A 32 year old actress has to take a call whether to spend Rs. 15 lakhs on a gym, dietician, make up…..etc. etc. HOPING to get a call or should reduce such expenses.

It is not easy for a planner to help them…but they have to do it…

Man life is tough!

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  1. Most of us assume that once these people get into the team or movies, they are set for life. But then money blinds you and you tend to make an ass out of yourself. Like they say, expenditure always rises to match incom

  2. LIFE IS TOUGH !!!????, The Film stars/Sportsperson know the uncertainty they can face in their career, if they manage to save mini fraction of their income they can die off peacefully….possibly with lots of awards and fame and much more in terms of branding for the children/grandchildren/greatgrandchildren.
    They Do not deserve your sympathize

    I know a friend who changed his mode of transport to office in order to save Rs. 750 per month. He is investing that money in equity through SIP’s (One of the well known fund)…Result : -20% return…..Kindly sympathize “mango” people as well,
    “LIFE IS NOT EASY”, everyone knows it and hence planned just to see that we never curse life and say “LIFE IS TOUGH” !!!!!

  3. Sonny you know NONE of them is reading this, or is it an assumption?

    Sameer – I just did not understand what you are saying, so cannot react…

  4. Assumption only Subra sirG. I don’t know “them” have so much time for financial planning. But, if they are, lucky them.

  5. Market is at a fresh low, none of the experts are talking about investing. Please speak up Subra sirG, tell us that Friday was your shopping day 😉

  6. Very aptly written article. I have myself tried to explain to my friends how some of these modestly successful ‘celebrities’ are not necessarily superior to other well earning salaried class. Especially given their lifestyle costs and erratic earnings and financial indiscipline. More so for actresses, models and sports persons who retire early. In fact these people need more financial management and self-discipline to ensure they lead a comfortable life throughout.

    For people like Sameer, i can only point out the stories of people like actor A.K. Humgal or Indian Hockey team player Sylvanus Dung Dung who was a part of Olympics gold medal winning team and more recently wanted to sell his medal to meet expenses. I am sure there are several others too who fell from greatness to financial woes.

    Hence the planning!!

  7. I have often wondered about the costs involved in such a lifestyle. Can a medium level star live in Mumbai other than bandra/ juhu/ lokhanwala? Can they ever take public transport? or move without a secretary/ make up man?

    And yes, short shelf life. Unless they re-invent themselves. Only some manage to do.

    Solid post.

  8. thanks! subra, putting lights on personal finance through blog.

    provide guidance how we can become our one financial planner? For example i tell u my profile.

    qualified engg. & mba. have no job experiance. becz of intrest in share market since toddler, after finishing study jump into it. started with very little capital of 30k. & in last 4 year growing +50% annually. currently my account grown beyond 4 lac. thinking of getting marriage age currently 30.

    have no sip, mutule fund, insurance. as far as first two, i make much more than any fund manager can make for me. insurance is ok.

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