How Rich Celebrities Lose Their Money

If you check out websites like richestcelebrities.bio you would notice the listings change quite often with some celebrities falling off the list entirely. The reason these celebrities fall off the listings at richestcelebrities.bio is due in part to them losing their vast fortunes and not being able to recover from it. The following is some of the primary reasons celebrities lose their vast wealth in no particular order.

Extravagant Spending

The moment a celebrity has a big payday they tend to go on a shopping spree where they spend huge amounts of money on clothes, vehicles, vacations and gifts for family and friends. There is nothing wrong with being generous to other people, however, when the spending gets out of control the celebrity could find themselves running out of money in a very short period of time.

Easy Credit

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With cheap credit easily available there are celebrities who are borrowing money figuring they will repay it when they work on their “next gig”. Most lenders don’t mind offering loans to celebrities just to say they have a “celebrity client” but if the celebrity is unable to get another good paying gig in the short-term they could fall behind the repayments of the debt.

Divorce & Child Support

This one can happen at any time and when it does the celebrity will lose half of his assets to the former spouse even if there is a prenup in place. Aside from losing half of the assets the celebrity will be required to pay alimony and child support payments even if they(the celebrity) is unable to earn the same income he did when with his wife and children. The only way a celebrity can avoid this problem is to stay single but that is a conversation for another time.

Buying Overpriced Real Estate

Celebrities love to buy expensive homes, for most it is a rite of passage but what the celebrity forgets is the cost to maintain the home after buying it. It is quite easy to service the property when the career is going well but the moment there is a shortage of work the celebrity could find themselves in dire financial shape. The best advice is buying a modest home that can be easily maintained even if the celebrity is unable to work for a prolonged period of time.

Unethical Money Managers

This is a very difficult one to avoid; celebrities will need professional help to assist them with managing their finances. The person the celebrity selects to do this important work must have impeccable morals and great business sense which is not always easy to find. If the celebrity selects an individual who does not have good morals then there is a risk that the celebrity could become the victim of embezzling which is very common.

These are just some of the ways that celebrities lose the vast fortunes they have amassed but this list is by no means all-inclusive, fortunes are made and lost daily so keep checking the online rankings so you know which of your celebrities are still on top financially.