"I live under my means. I think it’s incredibly important," Palmer stated. To illustrate her point, she shared, "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."
Palmer's perspective on money was shaped early in life. She recounted realizing that her earnings as a child actor surpassed those of her parents. Landing her first role at age nine in the 2004 film "Barbershop 2: Back in Business," she quickly became a significant earner. By 13, she had her own credit card and was the star of Nickelodeon's "True Jackson, VP."
Reflecting on her family's financial situation, Palmer shared on the "Club Shay Shay" podcast, "My parents, at their best, made $40,000 a year. I was making that a show."
Now, Palmer actively strives to emulate the financial wisdom she observed in her parents. "I learned from my parents very early on because they knew their limitations with money and finances," she explained. "I believe in saving and frugality … I don’t play around with that."
Beyond her own financial prudence, Palmer also prioritizes sharing her success with her family. During her "Club Shay Shay" appearance, she highlighted the sacrifices her parents made for her dreams. "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."
The concept of living below one's means is a personal one, varying from individual to individual. While traditional budgeting frameworks like the 50-30-20 rule (allocating 50% of income to needs, 30% to wants, and 20% to savings) may be challenging for many in today's economic climate, experts like certified financial planner Rachel Camp advise focusing on increasing income and minimizing substantial fixed expenses. This could involve exploring side hustles, sharing living costs, or re-evaluating the necessity of a car in urban environments.
Palmer also offers specific advice for young people, particularly young women, urging them to "learn up" on economics. This could involve engaging with personal finance literature, enrolling in relevant courses, seeking guidance from financially savvy individuals, or even utilizing tools like ChatGPT to develop a monthly budget.
"Be curious about that kind of stuff, because you don’t want to do things based off of survival," Palmer emphasized. "You want to do them out of choice. That’s something that my mom and my dad taught me very early on."