The Biggest Mistake of the Big Spenders

In order to learn how to become well off and stay that way it’s important to learn from other people’s mistakes. Here are several examples of how some rich people are risking the status that they worked very hard to achieve:

– Based on court documents that were released recently, it was revealed that Britney Spears doesn’t save any of her $730,000+ monthly income.

– The New York Post reported that the famous photographer Annie Leibovitz managed to accumulate $715,000 in debt, although she has a $2 million a year contract with the magazine Vanity Fair.

– The wrestler turned reality TV celebrity Hulk Hogan is said to spend almost twice his monthly salary of $57,000.

– Dustin Diamond, known to many of us as Screech from the TV show “Saved by the Bell” faced home foreclosure in 2006 although he still received royalties from the show’s reruns.

РThe recent celebrities to have their own housing problems include: Ed McMahon, Evander Holyfield, Jose Cans̩co, and Aretha Franklin.

All of these famous people, and many other not-so-famous but still rich people, are facing financial troubles because they spent more money than they’ve earned. This sounds like a no-brainer, but most people just spend and spend instead of examining their full financial situation. Even rich people need a budget.

Once you save more than you spend, you will become richer if you invest your money regularly, and the sooner you start the better. Investing can involve hiring a broker, financial advisor, real estate guru, etc’ but it’s equallly important for you to learn about how investing works and not just trusting others to make you rich. More on this in a future post.