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Kim Kardashian explains how she got rich

The reality star turned businesswoman effectively debunked trickle-down economics in an interview with a financial website.

Chris Mandle
Friday 03 July 2015 16:21 BST
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Kim Kardashian
Kim Kardashian (Getty)

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She’s been on the cover of magazines ranging from Rolling Stone to Vogue, but Kim Kardashian’s latest interview is much different.

The reality star turned entrepreneur spoke to financial website MarketWatch about how she built her empire, and showed a considerable amount of knowledge when it came to investing, saving and financial advice.

“You know, I thought the more money I made, that I would spend more,” she tells them during a Q&A. “And that’s the opposite. The more money I make, the more I want to save. I didn’t think it would be like that and I’ve actually surprised myself.”

Steve Goldstein, Washington bureau chief for Market Watch, tweeted: ‘Kim Kardashian explains why marginal propensity to consume decreases as income rises’ and pointed out that she succinctly illustrated an important financial concept.

Kim discusses her upbringing, and says that as a child, she took out a loan from her father, Robert Kardashian, and bought five pairs of designer Manolo Blahnik shoes costing $750 a pair, only to then sell them on eBay for $2,500 each and make a tidy profit.

When asked if she had any financial advice for millenials, she said: “I was fortunate for my parents to teach me about credit and saving and things like that. It’s nothing they teach you in school, and I really think that is unfortunate. I think classes on credit, and saving, and balancing a checkbook, which is so simple, should be taught in school because a lot of people don’t know much about it.”

People often don’t like to celebrate the Kardashian’s success. But the reality star has proven herself able to make consistently good business decisions.

An executive producer on her own show, she has launched multiple spin-offs and has developed a successful clothing line, beauty range and even published a book this year.

Her freemium app, Kim Kardashian: Hollywood may have been universally panned when she released it last year, but it went on to make $1.6 million in the first five days, with the app going on to bring in $43 million in the third quarter of 2014.

It was so successful that she’s spawned a new wave of celebrity-branded apps; Britney Spears, Katy Perry and the Jenners are all reported to want a slice of the action, too.

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