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Money Lessons From The Most Frugal Celebs

We often think celebrities are extravagant and buy fancy stuff but not all of them are that way. Some Hollywood A-listers are money-smart and maybe even more frugal than some of us. Our finance expert Rubina Ahmed-Haq scouted out money-savvy celebs and taught us some valuable lessons she learned from them.

Leonardo DiCaprio

Actor, film producer and philanthropist, DiCaprio is worth $200 million, amassed from Hollywood movies. You would expect him to own the latest and greatest sports cars, but despite his fortune, the actor only has one vehicle: a Toyota Prius. He's also known for ditching private jets and choosing to fly commercial instead to both save money and protect the environment from carbon emissions. His main pursuit is charitable giving, and he supports a number of environmentalist causes.

Lesson Learned: Use your money for a good cause. The less money you spend on wants and whims, the more money you have to support important causes, and this can be more satisfying than a luxurious life.

Tyra Banks

Model and talk show host Tyra Banks is worth $90 million. When she moved into her new office for her TV show, she found the unit definitely needed a facelift. But instead of shelling out the big bucks, Banks decided to give the offices an update with a fresh coat of paint instead, to save money.

Lesson Learned: Do it yourself if you can. Find frugal ways to update your space. While you might pine away for a pricey kitchen floor, smaller steps such as painting cabinets can also make a big impact and can be done cheaply. By allotting decor money carefully, you can stretch your dollar while making your home or office more comfortable.

Jennifer Lawrence

This Hollywood A-lister has already amassed $40 million, with big hits including the Hunger Games series. Despite a serious bump in income, Jennifer Lawrence has continued to live a down-to-earth lifestyle, clipping coupons and doing her own shopping. She credits her family for teaching her to value and respect money.

Lesson Learned: Your new income bracket should not change who you are at your core. There are certain things you should do when you get a raise, but falling prey to increased lifestyle costs is not among them. Instead, if you receive an unexpected windfall or bump in salary, continue living the lifestyle you did before the extra cash. Doing so means you'll be able to save more, invest more and grow your net worth.

Kristen Bell

This actress is worth around $16 million. But Bell is known for her frugal choices, even rocking a $45 dress from Target at one event and spending a mere $142 on her wedding! She once even admitted to stealing discount flyers out of her neighbour's mailbox.

Lesson Learned: You are never too rich to save. If you land that great paying job or inherit or even win money, there's no shame in keeping up your thrifty habits. There are too many stories out there of former A-listers who can't pay their bills once their career crested. Stick to you who you were before, maybe with some tweaks to keep spending in check.

Paul McCartney

Paul McCartney might have a net-worth of $800 million, but Macca's not one to spoil his kids. McCartney's known for his frugal ways, including making his daughter, Stella, pay her own way for post-secondary school.

Lesson Learned: Just because you can, don't spoil your kids. While helping out every once in a while is admirable, unchecked and lavish spending can keep your kids from developing their own drive. Set clear expectations with your children when it comes to money, whether it's doing chores for allowances, or paying for pizza "this time." Give them a chance to fill their own needs, make their own money, understand what they really value and develop the skills to earn their way to what they desire.

Jay Leno

The former host of The Tonight Show is worth $350 million dollars. While he might be known for splurging on classic cars, Jay Leno is actually pretty frugal. In 1992 when he signed on to do The Tonight Show, he made the choice to never spend his NBC salary, at that time $15 million per year. Instead, he lived on the income he made from stand-up appearances.

Lesson Learned: Always save for a rainy day. If you get surplus income, stash away a nest egg while you can. Conventional wisdom says you should save around 10 to 20 per cent of your income each month. To avoid the temptation to spend your savings, take a Leno-like approach: put your money in a hard-to-access account, such as a savings account at a separate bank, so you don't end up spending what you've put away for a rainy day.

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