When it comes to money, celebrities are just like the rest of us-they spend too much, save too little, and make a number of poor financial decisions. There are many celebrities that you would think would be financially well-off that are struggling. Some of them are better at saving, while others are spend-happy. Although their incomes may be large, their expensive lifestyles will oftentimes deplete their bank accounts quicker than than they can earn more.
Below are just a few of the list of celebrities who lost their fortunes to poor financial planning:
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Nicolas Cage was one of Hollywood’s highest-paid actors in 2009, earning $40 million that year. Cage’s extravagant spending habits though led him to financial problem. He was hit with a $6.2 million tax lien in 2009.
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Kanye West revealed through his twitter account this past February that he was $53 million in debt.
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Charlie Sheen has gone from a staple of prime-time television to just one of many celebrities with major debt. Despite his reported $150 million net worth, the actor is allegedly $12 million in debt.
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Lindsay Lohan’s finances had declined so much by 2012 that Charlie Sheen allegedly gave her $100,000 so she could pay off the taxes she owed from 2009 and 2010. The child actress and Mean Girls star is reportedly worth $500,000 these days—a drastic decrease from her previous net worth.
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MC Hammer. “U Can’t Touch This,” earned MC Hammer over $33 million in 1991 alone. Unfortunately, his lifestyle of buying luxury cars, airplanes, keeping up his expensive entourage, and spending $30 million to build a 12-acre home has been reported to have put MC into $13.7 million debt.
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Toni Braxton has filed for bankruptcy twice now! Once listing her debts as high as $50 million to companies including Tiffany and the Four Seasons.
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NFL and NBA Players. It’s not just singers and actors but athletes have major financial struggles as well. For example it’s estimated that 80% of NFL players are either bankrupt or under financial stress with just THREE years of retirement. It’s estimated that 60% of NBA players go bankrupt with FIVE years of retirement.
Thanks to these celebrities, everyday folk can learn a bit about the do’s and don’t’s of handling money.
- Spend within your means
- Don’t forget to file your taxes
- Don’t try to outsmart the IRS
- Be careful about who does your finances
- Save for a rainyday
Not sure how to manage your finances better than these celebrities? There is always the option to take a financial education class like Good Money Habits™ or Good Money Habits for Students™ to help guide you along the way of establish good money habits now and for a lifetime!
