More Money, More Problems? Why so Many Stars have Fame but Can’t Handle Their Money…
Rapper and Grammy-winner Curtis James Jackson III, aka 50 Cent, filing for bankruptcy left many people worried, even though he/ sold more than 30 million albums throughout his career. If he resorted to bankruptcy, how do others make ends meet? 50 Cent’s story is not unique. Musical artists, film actors, athletes, models, television stars, and other famous faces routinely file for bankruptcy. Even successful celebs run into financial problems if they spend beyond their means, despite their huge incomes.
Spending More Than They Earn
A high-profile Hollywood money manager confirmed most celebrities failed to live within their means. Major monetary problems for Hollywood elites, arise from divorces, impossible career goals, and even private jets. Rapper M.C. Hammer frivolous squandered away his $33 million fortune and filed for bankruptcy in 1996, by overspending. In 2012, former NFL star Warren Sapp reportedly owed more money to his creditors than his entire net worth, and had to declare bankruptcy. Supermodel Janice Dickinson filed bankruptcy in 2013 with one million dollars in debt.
Many celebrities refuse to file bankruptcy but rake up huge bills. For people in the public spotlight, the pressures to appear living the high life, are incredible. America’s fixation on celebrity culture puts household names on a pedestal, but making it doesn’t mean your money troubles vanish. In 2011, 50 Cent showed off his three Ferraris during a TV show to show off his massive wealth, but the cars were borrowed for the show from a private car collector.
Film Actors really need good financial planning
When it comes to Hollywood film stars there is no middle class. Film studios scrounge to meet salary demands of celebs, while others get nickels and dimes. The Screen Actors Guild reports a minimum daily pay rate of $842 for actors on a film but extras make only a minimum of $148 per day. Although making more than $40,000 for a single film, it is inadequate to live the life of Hollywood royalty with astounding unemployment rates for actors and actresses. It was said that in 2013, the unemployment rate stood at 31.8%. The Screen Actors Guild or SAG as we know them, reports that on an average, actors earn 52,000, yearly. The blunt truth is that fame doesn’t seem to always spell riches, and the money is very short-lived.
Professional Athletes don’t do it any better
A 2009 study of athletes found that within two years of retirement, more than 75 % of former NFL players filed for bankruptcy while NBA stars fared better, as only 60% experienced money trouble within five years of retirement. Forbes estimates that the average American 401k balance at age 65 is only $25,000. As per the World Bank figures, an American’s estimated life expectancy is now over 78 years, 65-year-olds have less than $2,000 to spend annually for their remaining years. The problem isn’t about athletes earning during their careers, it’s about their careers being very short.
When a Temporarily High Salary Doesn’t Last
Professional athletes start at 20 and retire at 23, and must make $500,000 last for 58 years while NBA players start at 20 and retire at 25 with much better prospects, approximating $425,000 per year to last for life. Kobe Bryant exceeded $30 million during the 2013-2014 season, but most players earn the league minimum $490,180 which is fabulous compared to the median American income at $41,704 for 2015. However, if employed only for five years, it’s essential to have a post-retirement job lined up.
More inLoans & Credit
Kylie and Her Anti-Snapchat Tweet Shows that Stars Can Influence Stocks – for Better or for Worse
The rise of the social media and in celeb activities, increasingly play a major role in the stock market. Celebrity endorsements...July 19, 2019
These On-set Demands Made by Celebrities are Just Bizarre
For a celebrity in Hollywood, nothing too ordinary would do. Be it their lifestyle, their material possessions or their acting method....July 17, 2019
Fashion Pieces Every Working Woman Should Invest In
At the age of 30, majority of us have already found a steady job we can grow into. Working hard and...July 16, 2019
Celebrities and their Scholarships are Helping Students Stay in School
Getting an opportunity to meet your favorite actor, sports hero, or singer, is great but a celebrity paying off your entire...July 15, 2019
TLC’s Unforgettable Reality Stars and What are They Doing Now
The Learning Channel, aka TLC started with educational and learning content, come 1990 and the channel’s content dramatically turned to reality...July 12, 2019
You Will Not Believe Which City in America is the Best Place to Live
America – the land of the brave, the land of the free, the greatest democracy. As good as that may sound,...July 11, 2019
These Tiny Celebrity Homes Made Us Feel Better about Our Small Apartments
For star-struck plebs like us, celebrities are virtual stars and we avidly follow their activities and media-reports. But celebs are people...July 10, 2019
Millennials Share How They are Trying to Survive the Recession
For millennials, their initial working years have been full of relative economic balance, rising stock market, low interest rates, and stable...July 9, 2019
Take Notes! Here’s How You Can Convert Your Bathroom into a Low-Cost but High-End Spa
For a lot of people, our bathrooms aren’t just a place we bathe or use the WC, it’s like a sanctuary...July 4, 2019