Seven Celebrities Who were Rich and Famous Before Losing all Their Money

We see the rich and famous life as extremely glamorous, and we believe they never have any money issues! Well, it isn’t completely true. While Hollywood is full of rags stories to riches stories, there are also riches to rags stories.

This happens because the celebrities forget to save their finances for a rainy day losing all the money they earned. Simultaneously, some of them were able to crawl out of their financial hole. For others, the journey wasn’t exactly what they wanted it to be.

Michael Jackson

The King of Pop had an insanely popular career. But did you know he was $400 million in debt when he breathed his last in 2009? He came to closure for his Neverland home.

The King of Pop took huge loans and was on a spending spree without giving it much of a thought. He never paid back the money. His problems got worse as he got embroiled with various lawsuits. Jackson even planned to go on a tour to get out of the debt. His estate resolved the issues, and he also became the top-earning dead celebrity five years on a row.

Nicolas Cage

Cage had a remarkable career in Hollywood. His earning was close to $40 million in 2009 alone, but he was also one of the biggest spendthrifts. He went about buying expensive homes, automobiles, and expensive artifacts. The IRS had placed tax liens on several  Nicolas-owned properties.

Cage had to pay a large amount, close to $6 million, as he failed to pay off his 2007 tax bill. Cage’s financial situation did not improve. He had to sell off situation led him to sell off his many prized possessions such as personal belongings, a treasured comic book, and even had to take on several film roles to stave off the debt.

Floyd Mayweather, Jr.

Mayweather also had the nickname Money, as he never lost any match to his opponents in the ring. Yet he owed the IRS money for over ten years.
The boxer got into a $22.2 million debt to the IRS.

He also tried to get out of retirement to pay off his debt. Rumors are rife that Mayweather may have to come out of the retirement to settle off his debts.

Mike Tyson

Mike Tyson, the heavyweight champion, had earned over $300 million throughout his career, but he got into a $23 million debt in 2003. He had to declare bankruptcy and go to jail too and take rehabilitation before reaching financial stability.

Tyson had to pay a whopping $9 million for a divorce settlement and could not pay child support. He owed a lot of money to lawyers, financial managers, and more.

Stephen Baldwin

Alec Baldwin’s younger brother also declared bankruptcy in 2009. He was also behind debt and unable to pay off a couple of mortgages. After six years of non-payment of mortgage, his house was foreclosed in 2017. He even went to jail as he failed to pay taxes for three years. He ultimately had to serve five years probation for the same.

Burt Reynolds

Burt Reynolds once declared that he got himself into money trouble because he never watched it. One bad venture led to another, and the chain restaurant’s failure meant more trouble for him!

Besides that, his luxurious indulgences like horses, private jets, and so on, only made things worse. Besides that, his divorce with Loni Anderson was an expensive affair too. He could not pay off a huge debt of $3.7 million to CBS and declare bankruptcy in 1996.

50 Cent

50 Cent, the famous rapper, earned a humongous amount of money as he owns a diverse empire. However, with the 2008 recession, things rapidly came downhill. In 2015, he was in $32.5 million in debt and had to brave many a financial storm in his life.

He was caught up in lawsuits and also could not pay child support payments. In 2016, he declared bankruptcy. He recently had a reprieve from his financial predicament with the surge in Bitcoin. His cryptocurrency worth increased in leaps and bounds and touched millions.

When you earn a fortune, it is important to save before you spend. And the life of these celebrities is an example of what could happen if you are a spendthrift and do not save.

So, always plan your finances wisely and consult with your financial advisor on how you could secure your future. That would avoid you from meeting a fate like some of these celebrities who are now struggling to make ends meet despite all the success they tasted!