Keke Palmer has worn many hats over her career so far: actress, entrepreneur, producer, podcast host, singer, author.
But the 31-year-old spends her money prudently due to her humble upbringing, she says: Living below her means is her top financial habit for having a secure lifestyle.
“I live under my means. I think it’s incredibly important,” says Palmer. “If I have $1 million in my pocket, my rent is going to be $1,500 — that’s how underneath my means I’m talking. My car note is going to be $340. I don’t need a [Bentley] Bentayga, I’ll ride in a Lexus.”Â
As a child, Palmer realized that she earned more than her parents. She got her first acting job at age 9 in Ice Cube’s 2004 film, “Barbershop 2: Back in Business.” By age 13, she had her own credit card and was the star of Nickelodeon’s “True Jackson, VP,” she says.
“My parents, at their best, made $40,000 a year,” Palmer told the “Club Shay Shay” podcast in a November episode. “I was making that a show.”
Palmer now tries to follow their example, she says.
“I learned from my parents very early on because they knew their limitations with money and finances,” says Palmer. “I believe in saving and frugality … I don’t play around with that.”
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She also shares her wealth with her parents, she noted during her “Club Shay Shay” appearance.
“My dad gave up his pension for me to have an opportunity for my dreams. My mom gave up everything so she could travel with me,” Palmer said. “What’s mine is theirs and what’s theirs is mine … I would sacrifice 20 more years of my life working in this industry so that I can provide and we can have the business we have today.”
Living below your means looks different for everyone. For example, the classic 50-30-20 budgeting rule — 50% of your taxable income for living expenses, 20% for savings and 30% for everything else — is increasingly out of reach for many Americans, CNBC Make It reported in May 2023.
If you can’t afford to save 20% of your earnings, start by finding a way to boost your income and minimize your large, fixed expenses, certified financial planner Rachel Camp recommended. That could look like picking up a side hustle, taking on roommates or even rethinking whether you need a car in the city you live in.
Palmer has an additional word of advice for young people, especially young women: “learn up” on economics.
That might mean reading personal finance books, taking a course at a local community college, talking to your money-savvy friend or even using ChatGPT to help you create a monthly budget plan.
“Be curious about that kind of stuff, because you don’t want to do things based off of survival,” says Palmer. “You want to do them out of choice. That’s something that my mom and my dad taught me very early on.”
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