Being a celebrity comes with fame and fortune, but sometime celebrities let their fortune get the best of them going from rags to riches to back to rags. Celebrities mismanage their finances just like everyone else, ending up in bankruptcy or court. Spending sprees, lawsuits, massive loans, or large child-support bills have been celebrities being sent to collections and stuck with debt collection accounts
On the flipside, there are celebrities who still take extra measures to carefully budget their cash each month. Some budget conscious celebs live very frugal lifestyles, even when they can afford some extra luxuries.
Here are a few celebrities who let their fortune get the best of them and some that are managing their money to the extreme. These first five celebrities have all hit major money snags during their careers:
After Michael Jackson died in 2009, it was reported that he had nearly $400 million dollars of debt to his name. His tour planned shortly before his death was meant to be a way for him to begin paying back large portions of this debt. Large amounts of spending, numerous lawsuits, and unpaid loans contributed to his debt problems that left the Neverland Ranch he called him nearly in foreclosure when he died.
50 Cent filed for Chapter 11 bankruptcy in 2015 after years of mismanaging his money. While the official amount was never disclosed, it’s said that he was in debt anywhere from $10-50 million dollars. The majority of the debt was from excessive spending, unpaid child-support and lawsuits against him. After months of being in court and planning with a financial team, 50 Cent had the bankruptcy discharged the following year.
After years of being one of the world’s highest paid actors, Nicholas Cage filed for bankruptcy in 2009 and reportedly owed the IRS over $14 million. Purchasing a private island, two castles, and a $25 million California estate likely didn’t help Cage’s finances. At one time it was reported that he owned over fifteen properties. Cage also purchased many vehicles and rare artifacts, many of which were sold to help pay off his debts.
After owing the IRS nearly $5 million, it was reported that Charlie Sheen also owed over $12 million from mortgages and legal fees, including $300,000 just on one credit card. It’s also known that Charlie pays ex-wife Brooke Mueller $55,000 per month in child support payments. Charlie’s recent admission of his HIV-positive status also includes an estimated $25,000 per month in medical expenses to maintain his current health status.
While it’s not generally known if Yeezus is truly in debt, he infamously tweeted in 2016 that he had $53 million dollars in debt, a tweet which has since been deleted. The debt was attributed to his fashion lines. However, it’s been reported that with his combined net worth from wife Kim Kardashian, Kanye isn’t headed into collections just yet.
Some stars choose to stay close to their humble beginning and limit their spending. Here are five celebrities that stay out of debt and spending their money wisely:
Tiffany Haddish is a true rags to riches story, having been homeless during a period of her life. She has talked about only carrying real designer bags when they are gifts, and instead purchasing fake bags for herself. She’s also not known to be living lavishly or driving expensive vehicles.
In his recent book, Rob Gronkowski admitted that he hadn’t spent any of his NFL earnings or contract money, instead living off of endorsement deals and and marketing dollars. He also stays frugal by not blowing all his money on luxury vehicles, jewelry, or designer clothing.
Kristen Bell has been known to be frugal with her hard-earned cash, even wearing dresses from Target and H&M on the red carpet. She’s famously gushed about her love of the 20% off Beth, Bath, and Beyond coupons and frequently mentions how much such loves utilizing coupons to save money in general.
Ed Sheeran has talked about his spending habits frequently in the past. He still uses the same bank account that he started as a teenager and gives himself a $1000-1200 monthly allowance to limit his spending.
Also an avid couponer, Carrie Underwood still clips coupons for her grocery shopping, but just like us often forgets them and leaves them at home. She also has said that she does her own shopping and when she forgets to pack a lunch, “splurges” on Subway sandwiches.
Even though these frugal stars make more money than most of us could ever dream about, they play it safe and avoid debt collection by living within their means and only purchasing things they need, not always necessarily thing that they want.