What We Can Learn from Bad Celebrity Spending Habits

As we all know, having a fat wallet can afford you a life of luxury - and unless you've been born into a substantial amount of cash - to enjoy these kinds of riches you have to achieve a certain level of success.

Of course, if you're a Hollywood A-lister, you're going to have plenty of cash to flash, but even if you're rich beyond your wildest dreams, poor decisions, and abuse of your personal finances could have you sitting at rock bottom faster than you can say 'make it rain'.

As a young and budding entrepreneur, managing your personal finances is an essential skill. To lend you a helping hand, here a few things you can learn from these outrageous celebrity spending habits:

Stephen Baldwin's rapid spending cycle

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celebrity spending

A few years ago, the youngest of the Baldwin acting dynasty filed for bankruptcy as he was over two million dollars in debt. Despite appearing on various reality shows and having close ties to the media, young Baldwin began to spend faster than he could earn, particularly on property, leaving him in a financial pickle. He owed over two million dollars, and his property was only worth half his debt - he also needed to pay untold amounts in tax - and had no choice but to declare bankruptcy.

Lesson learned: Always keep a steady cash flow.  Start with small investments and gradually build them up over time; always spend within your means - oh and don't dodge taxes, you won't get away with it.

Britney Spears' potless post-nuptials

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Longstanding pop sensational Britney Spears ran into a financial wall when she filed for divorce in 2008. During the proceedings, it was clear that Spear's barely saved a penny of her $737,000 monthly income and instead spent it on a flurry of exquisite meals, entertainment and epic nights out. Despite the major hiccup, she is now clawing her way back up and steadily getting her finances, as well as her career, back on track.

Lesson learned: No matter how much money you make, always save a steady amount every single month - because you never know when you're going to have a rainy day. If you don't trust yourself to set funds aside, set up a standing order or monthly bank transfer to a secure account and avoid spending everything you're bringing in.

Nicholas Cage's monetary mishaps

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At one point in time, Nicholas Cage was one of the world's highest paid actors - so naturally, he enjoyed a lifestyle that most mere mortals couldn't even dream of having. In fact, his outlandish spending cost him over 30 million bucks year. One of Cage's most colossal spends was a castle in Germany. Everything was going swimmingly until it turned out that his finances were dwindling, and he owed the IRS 6.2 million dollars in income tax. Instead of coughing up the cash, Cage had a court-based face off with his former business manager, who he blamed for the blunder - and things got messy.

Lesson learned: It doesn't matter how much or how little you have, personal finances are not to be taken lightly and it is important to not only keep track of your funds, but you should always take responsibility for them - otherwise you'll suffer the consequences.

We hope these outrageous spending habits have helped you avoid making terrible financial desicions. For more advice on managing your money, check out our Personal Finance section.

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