6 Celebrity Money Mistakes

Celebrities: they’re just like us! They navigate the grocery store, negotiate their children’s temper tantrums and even make mistakes with their finances. When a celebrity makes a money mistake, the effects are often costlier because of the large amount of money involved. Take a look at these cases of celebrity money mismanagement and learn from the mistakes of the rich and famous.

1. Living Beyond Their Means.

To many people, the concept of money is difficult to grasp, especially when your paycheck is in the millions. With all that new money coming in, it’s easy to spend frivolously and assume the money will never stop coming in. But even celebrities need to worry about job security, and sometimes the money does stop coming in. Nicolas Cage is a good example of living beyond your means. Cage invested in real estate prior to the 2008 financial crisis, accumulating 15 homes that quickly depreciated. He also purchased a bevy of luxury cars, motorcycles, art and even a private island. His overspending came to a head when he was hit with a $13 million tax bill he couldn’t pay, and has since been working and selling assets to get back afloat.

MC Hammer is another celebrity guilty of getting too big for his britches, and his britches were pretty large to begin with. Hammer also spent lavishly, at one point having over 200 employees on his payroll, before filing for bankruptcy.

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