Taylor Swift is being called a 'great economist' as she embraces billionaire status with her smash Eras tour — here are 3 big lessons you can learn from her ‘masterful’ money moves
Taylor Swift has broken plenty of records this year — from the stage to the cinemas — so it should come as no surprise that the blonde and bejeweled singer-songwriter has hit yet another money milestone.
Swift’s net worth finally eclipsed the $1 billion mark, according to new report from Bloomberg, meaning she now joins the likes of Rihanna and Jay-Z when it comes to accumulating wealth.
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She’s already raked in $780 million so far from her global tour — which provided a much-needed boost to the U.S. economy over the summer — with superfans spending thousands of dollars a pop on last-minute seats. Bloomberg estimates her tour has added $4.3 billion to the country's total GDP.
“In addition to being a generational talent, Taylor Swift is a great economist,” Carolyn Sloane, a labor economist at the University of Chicago, told Bloomberg.
“Taylor has great ideas, is able to scale her ideas and seems to be pretty risk-seeking.”
Here are three major money lessons you can learn from Swift even if you don’t have several (re-recorded) hit songs up your sleeve.
She always has a plan
Swift has made her fortune from several business-savvy decisions, such as re-recording and releasing old albums after the master rights were sold over by the record label, regaining control of her work while reducing the value of the original albums.
She recently made the decision to sidestep major movie studios and partner directly with movie theatre giant AMC Entertainment to distribute The Eras Tour film, which in part allowed her to take home 57% of ticket sales.
“Every endorsement, partnership and business move she makes is part of a broader, meticulously-constructed plan,” Stacy Jones, founder of marketing agency Hollywood Branded, told Bloomberg.
“It’s not just impressive, it’s masterful.”
According to an article from Women's Health, Swift has branched out to a number of business ventures from holiday ornaments to a cruise liner. The "In My Cruise Era" will set sail from Miami in October 2024.
Similarly, it’s important to create your own financial plan and stick to it — whether that’s to build up your emergency savings or a retirement nest egg, or prioritizing paying off your debts.
Even T-Swift can’t do absolutely everything on her own. Sometimes the best plan starts with recognizing that you aren’t sure what the best path forward is. In that case, it could be a good time to get in touch with a financial adviser to help you construct your master plan for your financial future.
She has an impressive real estate portfolio
Aside from her music and merch, Swift has a sizable real estate portfolio that’s worth upwards of $150 million, reports The Wall Street Journal.
She’s purchased properties in locations ranging from Beverly Hills to Cape Cod prior to the COVID-19 pandemic, and has seen their value soar over time.
For example, Swift’s first major purchase was a three-bedroom penthouse near Nashville’s historic Music Row district, following the success of her country pop album Fearless. Her collective holdings in the Adelicia condominium cost her nearly $2.4 million at the time, but local real estate agents now place them at between $4 and $6 million.
Read more: Invest in rental properties effortlessly: Cash in on prime real estate with just $20 and zero landlord duties
Although buying a home right now might give you some pause — especially with mortgage rates soaring toward 8% — you don’t have to be a billionaire to get into real estate.
Investing in real estate has been made much easier for all types of investors given the array of online platforms to choose from. From firms that cater to accredited investors with commercial real estate deals that call for larger minimum investments, to more accessible platforms that allow everyday investors to buy shares of properties and offer minimum investments as low as $100.
You could look into earning returns from multiple properties at a time through real estate investment trusts. They’re similar to mutual funds, except they own and operate properties that produce income, like rental properties and shopping malls.
She gives back
Swift certainly knows how to spend — but she also often gives back, whether that’s through hefty bonuses to Eras tour truck drivers or donations to local food banks and relief organizations
She has also pledged funds to disaster relief efforts, cancer patients and survivors of sexual assault and even helped one fan with paying off her student loansand two moms on the verge of eviction.
While donating to charities and important causes should really come down to generosity of spirit — you might qualify for a tidy tax deduction as well.
Keep in mind that you’ll need receipts in order to make a claim with the IRS, and deductions typically cannot exceed 60% of your adjusted gross income.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
