7 Celebrities Who Went From Bank to Broke
(FinancialHealth.net) – There’s an old adage that says the more money you have, the problems come your way. Rapper Notorious B.I.G. summed this up as “Mo Money, Mo Problems,” quipping the phrase when he himself was originally coming into money for the first time.
Sadly, Notorious never got to enjoy his money; his life was snuffed out in a shooting at just 25 years old. Unlike “Biggie Smalls,” these celebrities had more than enough time to blow through millions of dollars during their lifetimes, squandering riches to the point where most of them had to declare bankruptcy.
Fame may pay well, but it doesn’t teach you how to manage your newfound funds.
Before his death, Michael Jackson amassed one of the largest estates in the history of Hollywood. Conservative estimates penned his yearly income at between $50 and $100 million USD each year when he was still alive, but Jackson struggled after accusations of child molestation. At the time of his death, the press reported that he had amassed over $400 million worth of debt.
When Reynolds was at his peak, he was the heartthrob every girl wanted to be with. He amassed his fortune through acting, but failed to be as adept with money as he was roleplaying characters. Health problems and issues with addiction led him to file a Chapter 11 bankruptcy in 1996. Alimony issues and foreclosures continued to dog him for years.
Well-known for his comedy routines in the ‘90s, Sinbad filed for bankruptcy twice between 2009 and 2013. His first bankruptcy was a result of nearly $11 million in unpaid taxes, while his second was a result of failed personal investments into either celebrities or ventures that simply didn’t work out.
Best known for his music in the late 1980s and early 1990s, Meatloaf once sung that “two out of three ain’t bad.” Unfortunately, that wasn’t good enough for Jim Steinman, who helped produce and write his music. Steinman sued Meatloaf for royalties after feeling stiffed by the singer, leading him to eventually go broke.
Most of us can’t imagine spending $1,000,000 in a short period of time. Not so for Nicholas Cage, who blew through $150 million and still managed to owe the IRS $13 million at the end of his wild spending. Cage claims his money manager was responsible for… well, managing his money badly.
Corey Haim spent nearly his entire career battling with drugs, and his loss of money was directly tied to his addiction. By 1997, he had already claimed bankruptcy and little of his small fortune was left. Haim tragically died in March of 2010 and was so poor a memorabilia company had to cover his funeral.
What’s Lady Gaga doing on this list? Well, she’s recovered since going broke early in her career, but the multi-millionaire did go bankrupt during her Monster Ball tour years ago. With just $3 million to her name, she invested everything she had into her career and hoped for the best. Fortunately, Gaga is one of the bounce-back success stories we so rarely hear about.
~Here’s to Your Financial Health!
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