Celebrities teach us many things, they entertain us, they make us cry. In general, they’re there to entertain us and they’re role models in our society.
But what happens when a celebrity makes a financial mistake? The tabloids are blasted with news and we get great sources of learning that we shouldn’t pass up on. Here are five celebrity financial mistakes that we can learn from:
Pay your taxes: regarding this point, we can find celebrities like Willie Nelson, Leona Helmsley, Marc Anthony and Richartch. But there are a lot of celebrities who got into trouble for tax evasion. Remember that, in the United States, you must pay your taxes on April 15th each year.
Lesson: Pay your taxes on time.
Know where your money is going: Uma Thurman was cheated for a sum of $1 million dollars by a financial advisor named Kenneth Star, and Billy Joel sued his exmanager for $90 million dollars, claiming that he was using him as a personal bank.
Lesson: don’t trust just anyone with your money and know what’s being done with it.
Live according to your income: this is the biggest mistake that celebrities make. Nicolas Cage, Octomom Nadya Suleman and some of the Real Housewives have mortgage problems and some are on the brink of disaster.
Lesson: remember that your household expenses shouldn’t exceed 25-28% of your income.
Protect yourself when you get married: Paul McCartney didn’t have a prenuptial agreement at the time of his marriage to Heather Mills. His divorce ended up being one of the most expensive in history: $50 million. You’re surely saying: “I don’t have that kind of money.” The truth is that couples are getting prenuptial agreements now more than ever, without the feeling of aggression that it entailed in the past. In fact, according to estimates, by 2020, 50% of married couples will have a prenuptial agreement.
Lesson: know your partner very well before getting married and make financial matters clear before walking to the altar.
Update your will: deceased actor Heath Ledger had a will, but the last time it was updated was three years before his death. He had his daughter Matilda during this period. Consequently, she was completely left out of her father’s assets.
Lesson: Update your will in important moments, such as a birth, a wedding or a divorce.
Do you think that you can lead a horse to water, but you can’t make him drink? Well, it’d be really great if this saying wasn’t true. If you take this advice seriously, I assure you that you’ll end up with less financial problems. If you want more useful tips, register at the Family & Money Matters Institute site or follow me on Facebook and Twitter.