I’m always amazed that making ridiculous amounts of money is no insurance against filing bankruptcy. In fact, it sometimes seems that the extremely rich are almost just as likely as the extremely poor to seek the protection of the bankruptcy courts, and after hearing countless news stories on celebrity bankruptcies, two things occurred to me:
• Bankruptcy is more about the lack of balance between income and expenses than it is about either of those in isolation.
• Being famous does not make anyone a good money manager!
The last few years have certainly brought unexpected challenges in money management to my fellow public employees and to me. So as we search for new ways to stretch a dollar, I thought we might benefit from some light-hearted encouragement via the follies of the rich and famous.
This list doesn’t delve into the inspirational stories of remarkable men and women who crashed early in their careers to later rise to great heights (Abraham Lincoln, Henry Ford, Walt Disney, etc.). Instead, it takes a look into the more entertaining examples of financial miscalculation. (Click on the photos to activate the slide show.)
So as you continue to strive for balance in your financial income and outgo, take all you can from the disastrous experiences of these very public figures. Bottom line: Excess comes with a hefty price tag.