More money, more problems? Why so many stars have fame but can’t handle money … – The Financial Mag

The rapper and Grammy winner Curtis James Jackson III, who filed for bankruptcy, under the name 50 Cent, left him worried despite having sold more than 30 million records during his career. If he goes bankrupt, how do others get to the end? The story of 50 Cent is not unique. Music artists, film actors, athletes, models, TV stars, and other famous faces fail. Successful celebrities also face financial problems, despite their high incomes, if they spend beyond their means.

Spend more than they earn

A high-profile Hollywood money manager confirmed that most celebrities could not live. The big money problems of Hollywood elites are due to divorce, impossible career goals as well as private jets. Rapist MC Hammer the frivolous spent $ 33 million and went bankrupt in 1996 after spending too much. In 2012, former NFL star Warren Sapp allegedly owed his creditors more money than his net worth and said he had to go bankrupt. Supermodel Janice Dickinson went bankrupt in 2013 with a debt of one million dollars.

Many celebrities refuse to go bankrupt, but they collect huge bills. For people with public visibility, there is tremendous pressure to show a lively lifestyle. Settling in American celebrity culture puts home names on a pedestal, but doing so doesn’t mean your money problems are gone. In 2011, 50 Cent showed off its three Ferraris in a TV show to show off its great wealth, but the cars were borrowed from a private car collector for the show.

Film actors need really good financial planning

There is no middle class when it comes to Hollywood movie stars. Film studios study to meet the salary demands of celebrities, while others get nickels and dimes. The Screen Actors Guild has reported a minimum daily wage rate for actors in a film at $ 842, but extras earn at least $ 148 a day. Despite earning more than $ 40,000 for a single film, it’s not appropriate to live the lives of Hollywood kings with staggering unemployment rates for actors and actresses. In 2013, the unemployment rate was said to be 31.8%. As we know from the Screen Actors Guild or SAG, on average, actors earn 52,000 a year. The truth is, it seems that fame doesn’t always write off wealth and money is very short.

Professional athletes don’t do better

According to a 2009 study of athletes, two years after retiring, more than 75% of former NFL players went bankrupt while NBA stars improved, with only 60% having money in trouble five years after retirement. Forbes estimates that at the age of 65, the average American 401k balance is only $ 25,000. According to World Bank data, the life expectancy of an American is over 78 years, while the 65-year-old earns less than $ 2,000 a year for the rest of the year. The problem is not that athletes win a career, it is that their careers are very short.

When a temporary high salary does not last

Professional athletes have to start at age 20 and retire at age 23, and earn $ 500,000 for 58 years NBA players start at age 20 and retire at age 25 with much better chances of surviving for about $ 425,000 a year for life. Kobe Bryant surpassed $ 30 million in the 2013-2014 season, but most players earn a minimum of $ 490,180 in the league, which is $ 41,704 in median U.S. revenue for 2015. aligned with retirement work.

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