Why Celebrities Go Broke

If you are interested in how celebrities make money there are websites like celebnetworth.wiki that will give you the latest information on all the top celebrities and their current net worth. While celebnetworth.wiki is a great source of who is currently on top have you ever wondered why these celebrities end up bankrupt? Perhaps now is a great time to take a look at how a fool and his money are soon parted.

Money Can’t Buy Happiness or Can It?


Money may not be able to buy you happiness but it can take a huge amount of stress off your shoulders provided you know how to manage it properly. For the vast majority of celebrities out there they do not have the discipline or experience to manage money so they could end up in serious financial hardship. Most celebrities don’t just become “overnight successes” it takes a lot of hard work to establish yourself in the industry, where do you think the term “starving artist” came from? When success does find one of these starving artists they go from virtually no income to a six or seven figure income in virtually a few days. This sudden influx of money can make the artist feel euphoric and that the good times will never come to an end but sadly for most, they squander their fifteen minutes of fame and end up back where they started, perhaps further in debt.

Reasons Celebrities Lose Their Wealth

Once a celebrity has a substantial windfall they may be tempted to reward their loved ones with homes, vehicles, cash and a host of other gifts. While it feels great spoiling the people you love these gifts are usually overpriced so the buyer ends up wasting their money on things they do not need. We all waste money but when celebrities waste money it is a considerable amount of cash.

Aside from giving extravagant gifts away another way that celebrities lose their wealth is through a divorce. A divorce will cost a huge sum of money and reduce the celebrity’s assets by one-half or more not to mention the alimony and child support payments that will come out of the settlement, till death do us part was not meant for celebrity marriages! We cannot forget the taxman who is also going to want his pound of flesh from the celebrity who just happens to be in the highest tax bracket because they did not speak with an accountant who could have help them structure their income to reduce their tax liabilities. Depending on where the celebrity resides they could end up paying nearly fifty percent tax to the government on the income derived from their work so that is a huge bill and the government doesn’t care if you are having financial hardship.

These are just a few reasons why celebrities lose all their money but there are many more reasons, these were just the primary ones. Perhaps being a celebrity is not all it’s cracked up to be but it’d be nice to have access to the kind of cash these celebrities have for a few days.