Most of us envy celebrities and their glittering lives. However, because of overspending and little financial prudence, these hot celebrities wind up becoming broke celebrities.
1. Courtney Love
Courtney Love is no stranger to controversy. From troubled teens to the much talked about marriage with the late Kurt Cobain to her never-ending antics, Love has sold more tabloids than albums. The singer once faced bankruptcy with mounting debts, eviction, and the loss of her daughter’s custody. Despite being a beneficiary of Cobain’s estate, she had no place to stay and (as she once claimed) nothing to eat.
Courtney managed to stave starvation by selling assets for some hard cash and came back with an album. When faced with bankruptcy assess your strengths in assets and saleable talent. Sell the first, and capitalize on the second and fight to live another day.
2. Pamela Anderson
In 2009, Pamela Anderson moved into a trailer with her sons instead of the multi-million mansion that she was planning on. The former Baywatch star added every conceivable whim to the construction, but forgot to pay the builders. She has similar debts scattered all over and they are mounting up. Last year, California Franchisee Tax Board revealed that she owed income tax amounting to $493,000 dollars.
Pam’s over ambition is our lesson here. The mansion is a case in point. She added expensive touches like gold pool tiles without any actual financial planning to cover all costs. Her home became part of her mounting debts. Property is a sound investment, but you must first decide how much you can afford. A habitable home is more important than gold tiles.
3. Lindsay Lohan
Lindsay Lohan has gone far beyond the label of ‘troubled’ celebrity. With the many troubles that this starlet finds herself in, financial trouble is perhaps inevitable. The actress faces mounting debt and is hard pressed to pay even her monthly rent. Adding to her trouble is the lack of any work, thanks to her infamy.
The biggest lesson from Lohan’s financial mess is how not to live. Health is wealth and keeping a healthy lifestyle will make sure that we can get a job, keep it, and does it well.
4. Donald Trump
Financial Mogul Donald Trump has earned many fortunes and lost them. In 1989, Trump suffered heavy financial losses. Some people say that he lost his hair in the crash. Estimates put his debts at over $3.5 million, $900 million in personal debt. Eventually the Trump Organization filed for bankruptcy. He later recovered from this mess, only to file for bankruptcy again in 2009.
The vital lesson to learn from this TV magnate is to avoid taking on loans that you have no hope to pay and never believe your own press. Your TV show may project you as a master to business and making money, but clearly you are not.
5. Michael Jackson
You may find it hard to believe that anyone can manage to spend the millions the King of Pop earned in his lifetime, much less go to debt beyond that – in Michael Jackson’s case it was true. Jackson spent millions on his Neverland Ranch, eventually losing it all. Although he planned a concert tour to recover the money, he died before he could start it.
Learn to stay within your (humongous) means. Moreover, keep mortality in mind when taking on loans. You may think you have long to live, God may choose to disagree. You can opt for insurance against death. That way you make sure that your family will be spared your mess.
Celebrity lives are as fallible as the next. Most celebrity bankruptcy stories start with mystifying overspending and dismal financial planning. Learn from their lives and know what not to do.