Ed Sheeran: The Pop Star with a Practical Allowance
Ed Sheeran is one of the most successful musicians on the planet, capable of selling out stadiums worldwide. His songwriting credits and record sales have generated immense wealth, yet his approach to personal finance is famously sensible. To avoid the dizzying effect of having a virtually unlimited bank account, Sheeran gives himself a monthly allowance.
In a 2017 interview with a major Irish newspaper and later covered by outlets like Biography.com, he revealed that he pays himself a relatively modest salary from the vast earnings of his companies. He explained that if he had all his money in one account, he would “spend all of it.” So, he has a main business account that is managed for him, and he transfers a monthly allowance to a personal checking account that he uses for everyday expenses like taxis, food, and bills.
He admitted that the allowance is still generous by any normal standard, but the system provides a crucial psychological boundary. It prevents him from making impulsive, multi-million-dollar purchases and forces him to operate within a budget, similar to how most people live. “I have not really upgraded because I do not spend much money,” he said. “If I had all my money in one account, I would spend all of it. So I get an allowance.”
His spending habits reflect this mindset. He is more likely to be seen in a local pub in his native Suffolk, England, than at an exclusive club. While he has invested in property, particularly in his hometown, his day-to-day life is not one of extravagant displays of wealth. This practical system allows him to enjoy the fruits of his labor without being consumed by them, ensuring his focus remains on his music and family rather than on managing an ever-expanding list of luxury possessions.
