Celebrities often make huge money mistakes. Many flaunt their so-called wealth, only to have to explain their actions when the truth comes out. Following the financial lives of celebrities will not only give you clues on how to live lavishly, but it will also teach you to learn from their mistakes.
Live Above Your Means
Getting locked into leases and mortgages that have large payments can cause you problems, especially once you lose your job or if your income decreases significantly. Many celebrities spend millions to make others believe that they are living the high life. For many stars, this is a facade that eventually costs them dearly. When jobs are few and far between, making excessively high payments to cover general living expenses can be extremely draining.
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Spend More Than You Make
People who suddenly have a lot of money tend to spend erratically, not paying much attention to what is actually happening with their finances. Shopping sprees, large purposes and financial gifts can reduce your income substantially. Even if you gain a large amount of cash through a settlement or inheritance, budget your money wisely. Overspending on items you don’t need will eventually come back to haunt you. Hence, prioritize your spending smartly.
Many celebrities, who make substantial amount of money each year, owe a large amount of taxes. For everyone who files a tax return and makes their payment on time, there are others who do not. Each year, a number of celebrities are charged with tax evasion for not filing their returns and admitting to their income. The easiest way to solve this problem is to file your taxes each year and make sure to send any money that is owed before the April, 15th deadline. This can prevent an audit or an investigation into your finances.
Avoid these money mistakes that the celebrities make and stay financially stable. After all it needs perfect balance to handle all your money flawlessly, which even the rich and the famous fail to meet.
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