Planning ahead for your finances is essential!! We see examples of financial missteps everywhere, especially when we look at some of our community’s highest earners: Celebrities!
Moral of the story: Start planning for the long term while you’re young – you never know how soon you might need the money.
CELEBRITY FINANCE MISHAPS: EVEN THE RICH NEED A BUDGET!
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Former Baywatch star Pam Anderson owed $1.1 million to various construction companies when she defaulted on payments for a renovation job in 2009, as well as back state taxes, according to L.A. County Records.
Nicolas Cage has run into a lot of problems for his overspending habits. After declaring bankruptcy due to overspending, Cage was in the news again for buying a ridiculous pyramid tomb!
Court papers during Britney Spears’s child-custody trial in 2007 revealed that the singer earned an average of $737,000 per month, but doesn’t allocate a penny toward savings, investments, or education funds for her two sons.
Gary Coleman was once one of the highest-earning child stars, but was forced to declare bankruptcy after his handlers mismanaged his $8.3 million trust fund.
Teen actor Corey Haim starred in a dozen hit movies in the 1980s, but had to file for bankruptcy in 1997 when faced with a $100,000 IRS bill and another $100,000 in debts; reportedly, his only assets at the time were a 10-year-old BMW, $100 in cash, and $7,500 in royalties.
Lesson Learned: Plan now for the long term no matter what your monthly income is. Living in the moment is a dangerous trend!!