Tuesday, May 16, 2017

How A Lavish Celebrity Lifestyle Can Lead To A Financial Downfall

It is easy to sit back and watch a movie or television show, or go to a concert and feel like the superstars involved have it made. From all outward appearances, celebrities have more money than they know what to do with and not a care in the world when it comes to finances. But not all stars are good with their money, and can end up in a financial hole that is hard to dig out of easily. When the going gets too tough, many a celebrity has used the bankruptcy laws to their advantage, and filed a case to protect what assets remain, while getting a handle on dwindling fortunes. The reasons for the downfall in finances vary, but there are some typical behaviors that can cause problems for anyone’s budget.

Here are some of the leading ways a lavish celebrity lifestyle can lead to a financial downfall, and these can apply to people who aren’t big time stars:

         Spending more than you make.
         Buying things on credit with the plan to pay it off later, then making only minimal payments.
         Neglecting to create and stick to a budget.
         Making an unwise investment decision.
         Paying more for an item than it is worth, or making an emotional impulse purchase.
         Failing to plan for the future by setting up a savings account.
         Relying on a certain job to come through, only to have it go to another candidate.
When celebrities, or even you and I, spend more money than we make or buy extravagant things, it can be hard to stay on top of our financial obligations. The old saying that “the more you have, the more you want” certainly applies to the stars and it can be easy to get caught up in the fame and fortune. But without careful planning even a star who seems to have it all can find themselves needing to file for bankruptcy or make other financial decisions to reign in a blown up budget. Public records show that stars like Kim Basinger, MC Hammer, Mickey Rooney, and Sinbad have all filed for bankruptcy in their past. Even legendary author Mark Twain has taken bankruptcy to get financial relief. The process can be intimidating, but we know how to prepare your case and see it through to the end. If you are experiencing financial difficulty, let us help.

If you have questions about how to stick to a budget or get out of debt, call us today or reach us online at www.law-ri.com. We have multiple locations to serve you and can schedule a time to meet at the office most convenient for you.

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