An increase in assets doesn\u2019t come with an increase in financial acumen. Financial Literacy Month is a great time for us all to expand our knowledge. It\u2019s also a great time to raise awareness of the many scams, frauds, or predatory lending practices that affect too many families every year.<\/p>\n\n\n\n
Sometimes we analyze \u201cbest practices\u201d as a way to learn a new behavior, but today, we\u2019re taking the opposite approach. As Eleanor Roosevelt once said, “Learn from the mistakes of others. You can’t live long enough to make them all yourself.” <\/p>\n\n\n\n
Here are five examples of wealthy celebrities who have gone through ups and downs financially. While some of these stories are extreme, each reinforces the need to live within your means and to have trusted advisors in your corner.<\/p>\n\n\n\n
The former heavyweight champion earned over $400 million throughout his career but filed for bankruptcy in 2003.1 <\/sup>Tyson allowed others to control his finances, didn’t review his bank statements, and overspent on things like cars, jewelry, and exotic animals. He admits that his financial illiteracy and trust in others led to most of his financial issues. Some of his most interesting purchases include:<\/p>\n\n\n\n The actress won an Oscar and earned millions of dollars during her career but filed for bankruptcy in 1993.4<\/sup> Basinger invested heavily in a town in Georgia, hoping to turn it into a tourist attraction. The venture failed, and she lost millions of dollars. Her most interesting purchases include:<\/p>\n\n\n\n The actor earned over $150 million throughout his career but filed for bankruptcy in 2009.6 <\/sup>Known for his extravagant spending habits, Cage bought 15 homes and a wide variety of yachts and cars. He also failed to pay taxes on some of his properties, leading to a $14 million tax bill.7 <\/sup>Some of his most interesting purchases include:<\/p>\n\n\n\n The actor has experienced significant financial troubles over the years, largely due to his extravagant spending habits and legal battles.10<\/sup> In 2020, it was reported that Depp had sold off many of his assets, including a number of homes and his prized art collection9<\/sup>, in an attempt to pay off his debts. Some of his most interesting purchases include:<\/p>\n\n\n\n The rapper earned over $30 million during his career but filed for bankruptcy in 1996.12<\/sup> Hammer overspent on things like $30 million renovating a $12 million mansion, luxury cars, and a private jet.12<\/sup> He also had a large entourage that he paid for, further draining his finances. Some of his most interesting purchases include:<\/p>\n\n\n\n While it\u2019s interesting to examine the spending habits of others, especially those on the extremes, it\u2019s more important to examine the choices we make in our own lives. It\u2019s also important to remain a student when it comes to finance, and never be done learning and growing. <\/p>\n\n\n\n How can you increase your financial literacy? Here are some specific steps you can take:<\/p>\n\n\n\n Remember, financial literacy is not a one-time achievement but an ongoing process of learning and improvement. By continuously educating yourself and practicing good financial habits, you can avoid the pitfalls that befell many of these celebrities. Sources:<\/p>\n\n\n\n 1 <\/sup>Thomas, Mike. \u201cMike Tyson Reveals the Shocking Way He Emerged From Bankruptcy.\u201d Sportscasting. https:\/\/www.sportscasting.com\/mike-tyson-reveals-the-shocking-way-he-emerged-from-bankruptcy\/<\/a>. Accessed 14 March 2023. <\/p>\n\n\n\n 2<\/sup> SK Desk. \u201cMike Tyson Net Worth.\u201d Sportskeeda. https:\/\/www.sportskeeda.com\/mma\/mike-tyson-net-worth-2021<\/a>. Accessed 14 March 2023. <\/p>\n\n\n\n 3 <\/sup>Brown, Steve. \u201cFive Lending Tips to Stay Competitive.\u201d PCBB. https:\/\/www.pcbb.com\/bid\/2021-12-06-five-lending-tips-to-stay-competitive<\/a>. Accessed 14 March 2023. <\/p>\n\n\n\n 4<\/sup> Furdyk, Brent. \u201cCelebrities Who Went Bankrupt \u2014 and What They Did Wrong.\u201d Slice. https:\/\/www.slice.ca\/celebrities-who-went-bankrupt-and-what-they-did-wrong\/<\/a>. Accessed 14 March 2023.<\/p>\n\n\n\n 5<\/sup> O\u2019Steen, Kathleen. \u201cBasinger files Chapter 11.\u201d Variety. https:\/\/variety.com\/1993\/film\/news\/basinger-files-chapter-11-107245\/<\/a>. Accessed 14 March 2023. <\/p>\n\n\n\n 6<\/sup> Yaged, Christine. \u201cHow Nicolas Cage Wildly Spent a $150 Million Fortune.\u201d Finance Buzz. https:\/\/financebuzz.com\/finance-nicolas-cage-buying-spree<\/a>. Accessed 14 March 2023. <\/p>\n\n\n\n 7<\/sup> Miller, Carlin. \u201cNicolas Cage Says He’ll Pay $14 Million Debt to IRS; Finances in Ruin.\u201d CBS News. https:\/\/www.cbsnews.com\/news\/nicolas-cage-says-hell-pay-14-million-debt-to-irs-finances-in-ruin\/<\/a>. Accessed 14 March 2023.<\/p>\n\n\n\n 8<\/sup> Martin, Emmie. \u201cHow Nicolas Cage blew $150 million on mansions, a private island \u2014 and a real dinosaur skull.\u201d CNBC. https:\/\/www.cnbc.com\/2017\/05\/10\/craziest-things-nicholas-cage-bought-with-150-million.html<\/a>. Accessed 14 March 2023. <\/p>\n\n\n\n 9<\/sup> \u201cJohnny Depp sold his art for more than $3.6 million just a few hours after announcing it was available.\u201d Marca. https:\/\/www.marca.com\/en\/lifestyle\/celebrities\/2022\/07\/28\/62e2ed1aca47418e418b45ad.html<\/a>. Accessed 14 March 2023. <\/p>\n\n\n\n 10<\/sup> Rodrick, Stephen. \u201cThe Trouble with Johnny Depp.\u201d Rolling Stones. https:\/\/www.rollingstone.com\/feature\/the-trouble-with-johnny-depp-666010\/<\/a>. Accessed 14 March 2023. <\/p>\n\n\n\n 11<\/sup> \u201cJohnny Depp Spent $3M to Blast Hunter S. Thompson’s Ashes Out of Cannon: Lawsuit.\u201d NBC News. https:\/\/www.nbcnews.com\/pop-culture\/celebrity\/johnny-depp-spent-3m-blast-hunter-s-thompsons-ashes-out-n715231<\/a>. Accessed 14 March 2023. <\/p>\n","protected":false},"excerpt":{"rendered":" An increase in assets doesn\u2019t come with an increase in financial acumen. Financial Literacy Month is a great time for us all to expand our knowledge. It\u2019s also a great time to raise awareness of the many scams, frauds, or predatory lending practices that affect too many families every year. Sometimes we analyze \u201cbest practices\u201d […]<\/p>\n","protected":false},"author":3,"featured_media":2965,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","meta":{"post_statement":"","post_description":"","post_cta":"","post_button":"Read More","post_button_url":"","compliance_id":"","post_disclaimer":"","footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.wpgfinancial.com\/wp-json\/wp\/v2\/oi_article\/2964"}],"collection":[{"href":"https:\/\/www.wpgfinancial.com\/wp-json\/wp\/v2\/oi_article"}],"about":[{"href":"https:\/\/www.wpgfinancial.com\/wp-json\/wp\/v2\/types\/oi_article"}],"author":[{"embeddable":true,"href":"https:\/\/www.wpgfinancial.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.wpgfinancial.com\/wp-json\/wp\/v2\/comments?post=2964"}],"version-history":[{"count":1,"href":"https:\/\/www.wpgfinancial.com\/wp-json\/wp\/v2\/oi_article\/2964\/revisions"}],"predecessor-version":[{"id":2998,"href":"https:\/\/www.wpgfinancial.com\/wp-json\/wp\/v2\/oi_article\/2964\/revisions\/2998"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.wpgfinancial.com\/wp-json\/wp\/v2\/media\/2965"}],"wp:attachment":[{"href":"https:\/\/www.wpgfinancial.com\/wp-json\/wp\/v2\/media?parent=2964"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.wpgfinancial.com\/wp-json\/wp\/v2\/categories?post=2964"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.wpgfinancial.com\/wp-json\/wp\/v2\/tags?post=2964"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
2. Kim Basinger<\/strong><\/h2>\n\n\n\n
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3. Nicholas Cage<\/strong><\/h2>\n\n\n\n
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4. Johnny Depp<\/strong><\/h2>\n\n\n\n
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5. MC Hammer<\/strong><\/h2>\n\n\n\n
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12<\/sup> Cassidy, Maurice. \u201cHow MC Hammer Blew Away $33 Million.\u201d TheThings. https:\/\/www.thethings.com\/how-mc-hammer-blew-away-33-million\/<\/a>. Accessed 14 March 2023.<\/p>\n\n\n\n