Lifestyles of the Rich and Famous
The lives of the rich and famous may seem like glitz and glam to us, but even some of the biggest Hollywood icons struggle with money.
Usually, stars go broke as a result of lawsuits—or major overspending.
Stars like Michael Jackson, MC Hammer, and 50 Cent are among the top musicians with great wealth who ended up with bankruptcy and debt. And actors like Nicolas Cage and Kim Basinger have also declared bankruptcy.
Here’s 25 stars who lost all their money—and why.
Michael Jackson
Apparently, Michael Jackson was at least $400 million in debt when he unexpectedly died in 2009.
Not only that, the King of Pop was also close to foreclosure on his famed Neverland home.
How did this happen?
Michael Jackson: Big Spender…and big trouble.
Sources claim Jackson was a big spender who took out many loans and often didn’t pay them back. But all that got worse when he became involved in numerous expensive lawsuits.
Even still, Jackson has been the top-earning late celebrity since 2012.
Matthew Rolston, Wikimedia Commons
Nicolas Cage
At one time, Nicolas Cage was one of Hollywood’s biggest stars—earning $40 million in 2009 alone. But by 2011—everything went downhill, and Cage lost it all.
nicolas genin, CC BY-SA 2.0, Wikimedia Commons
Nicolas Cage: High Roller
From purchasing numerous homes, automobiles, and rare artifacts Cage blew through his $150 million fortune. This occurred over 15 years, but ultimately ended in disaster.
Apparently, the IRS placed a lean on multiple properties he owned and forced him to pay more than $6 million for not filing his taxes. He had to sell many of his beloved belongings, including a treasured comic book.
As of May 2017, Cage was on his way back up with a reported $25 million.
nicolas genin, CC BY-SA 2.0, Wikimedia Commons
Floyd Mayweather Jr.
Floyd Mayweather Jr.’s nickname is “Money” for never losing a boxing match. Ironically, he has very little money and is heavily in debt—$22.2 million to be exact.
Rumor has it, he may have to come out of retirement (again) to settle his debts. So, what is the root of all this debt?
YES Market Media, Shutterstock
Floyd Mayweather Jr.: Dodging Taxes
Mayweather took dodging taxes to the next level. Apparently, he owed the IRS money for over a decade. At one point, he came out of retirement for a high grossing fight, but it still wasn’t enough to make a dent in his debt.
DEWALT POWER TOOLS FIGHT NIGHT CLUB 2010, Wikimedia Commons
Mike Tyson
Mike Tyson reportedly earned more than $400 million over the course of his career—but he also lost quite a bit.
In 2003, Tyson was about $23 million in debt. He ended up declaring bankruptcy, returning to jail, and going through rehab before he was financially stable again.
How did he rack up so much debt?
Super Festivals, CC BY 2.0, Wikimedia Commons
Mike Tyson: In the Red
The heavyweight champion apparently owed a lot of people money—the IRS, British tax authorities, lawyers, a personal trainer, a financial manager, a music producer, and many others.
He also owed $9 million in a divorce settlement and was behind on child support.
Thankfully, Tyson eventually got his life together and today he is retired from fighting, financially stable, and running a cannabis company.
Paula R. Lively, CC BY 2.0, Wikimedia Commons
Stephen Baldwin
Stephen Baldwin lost it all in 2009, and while he tried hard to work it out, he ended up claiming bankruptcy. Apparently, Baldwin didn’t just owe a lot of money, he was in big trouble because of it too.
Stephen Baldwin: One Thing After Another
Baldwin’s money problems were a result of many things, which included $1 million in tax evasion, $700,000 in credit card debt, $1.2 million in mortgage payments, and more.
His tax evasion got him apprehended and he actually had to serve time as a result.
Some sources say Baldwin’s daughter and son-in-law, Hailey and Justin Bieber have helped him with his financial problems.
Gage Skidmore, CC BY-SA 2.0, Wikimedia Commons
50 Cent
50 Cent broke out as a rapper in the late ‘90s, but he makes most of his money from a diverse business empire—which is apparently quite lucrative.
However, in 2015 he was reportedly $36 million in debt, and had to file for bankruptcy.
TechCrunch, CC BY 2.0, Wikimedia Commons
50 Cent: Trouble
50 Cent racked up a lot of debt as a result of lawsuits—some of which were a result of shady behaviors (like sharing someone’s private video without permission).
He also owed a few companies, banks, and the IRS.
Today, 50 Cent has a net worth of $40 million—which is ultimately due to his smart business investments.
Alex Const, CC BY 2.0, Wikimedia Commons
Civil War General Ulysses S. Grant
Civil War General Ulysses S. Grant was the 18th president of the United States apparently went broke after leaving the White House.
After his term ended, Grant became a partner in a financial firm, Grant and Ward. Unfortunately, things went terribly wrong and left him in a bad spot.
Brady-Handy Photograph Collection, Wikimedia Commons
Ulysses S. Grant: Shady Partnership
Sadly, Grant’s partner Ferdinand Ward was secretly embezzling investors’ money, and in 1884 the firm, along with Grant, went completely bankrupt.
Although Grant was receiving a military pension, it wasn’t enough as he was also suffering from throat cancer.
In a last attempt to make money, Grant had author Mark Twain publish his memoirs—but he died before he could make any money from it.
Bain News Service, Wikimedia Commons
Mark Twain
American writer, Mark Twain didn’t come from riches, and he also didn’t make much to consider himself wealthy—but he did stumble financially as well, causing him to declare bankruptcy in 1894.
A.F. Bradley, Wikimedia Commons
Mark Twain: Business Woes
The only reason for Twain’s bankruptcy was failed business. Apparently, he put all of his money into a publishing house as well as a typesetting machine that was not yet perfected.
When the machine—his major investment—failed, he had nothing left.
However, Twain overcame his financial troubles and ended up a very successful novelist.
Underwood & Underwood, Wikimedia Commons
MC Hammer
Shortly after MC Hammer’s hit single “U Can’t Tough This” topped charts everywhere, the rapper found himself with over $30 million in the bank.
However, like a kid with an ice cream cone on scorching day, things went downhill real quick.
Brian Solis, CC BY 2.0, Wikimedia Commons
MC Hammer: Big Spender
Hammer’s wealth got to his head, and he started spending cash like nobody’s business. He immediately bought a $1 million mansion and then made $30 million of renovations to it. He also staffed 200 people in his home and bought a horse stable where he kept 19 race horses.
Not only that, he experienced numerous lawsuits as well. In total he was about $13 million in debt in 1996.
As of today, MC Hammer has a net worth of $2 million.
Dennis Rodman
Dennis Rodman may have been a famous basketball player, but apparently, he could barely afford basic living expenses.
So, where did all his money go?
Featureflash Photo Agency, Shutterstock
Dennis Rodman: Sticky Fingers
First of all, Rodman apparently skimped out on child support for a while, which added up to $800,000. His lawyers claimed he was “broke” and “sick,” and that was why he couldn't pay for so long.
However, things got worse when he was accused of stealing a 400-pound amethyst crystal from a yoga studio, along with thousands of dollars’ worth of clothing and merchandise from brands like Spiritual Gangster and Lululemon.
Today, his net worth barely reaches $500,000.
Tuomas Venhola, Wikimedia Commons
Kim Basinger
Kim Basinger is a well-known Hollywood actress who made a good penny off some of her films. In fact, she even had enough in the bank to purchase an entire town in Georgia for $20 million.
Apparently, she had planned to create a theme park in the town, but sadly her dream was crushed and only 4 years later she declared bankruptcy and sold the property.
Kim Basinger
Basinger’s bankruptcy made headlines. She was being sued by “Boxing Helena” producer for backing out of an oral contract to star in the film.
The court ordered her to pay over $8 million in damages and lawyer fees. After she was unable to post a bond of $11 million as assurance she will pay, she had no choice but to claim bankruptcy.
She continues to act, and currently has a net worth of around $20 million.
Marvin Gaye
Grammy Award winner Marvin Gaye is known as one of the most famous musicians of all time, but in 1976 he had to make the difficult choice to file for bankruptcy.
What went wrong?
Marvin Gaye: Marriage Woes
Gaye was apparently very behind on alimony payments to his first wife, Anna Gordy Gaye. The judge ordered him to pay her $600,000 from royalties of his upcoming album.
That’s not all. Gaye also owed money to the IRS, and was behind on mortgage payments.
When he tragically died only a handful of years later, his estate was roughly $9 million in debt.
Los Angeles Times, CC BY 4.0, Wikimedia Commons
Burt Reynolds
As a big movie star in the 60s, 70s, and 80s, Burt Reynolds racked up quite a bit of cash—and quite a bit of debt, too.
At the height of his career, Reynolds was worth over $60 million. But in 1996, after finding himself over $10 million in debt, he declared bankruptcy.
While spending was his biggest problem, it wasn’t his only problem.
Alan Light, CC BY 2.0, Wikimedia Commons
Burt Reynolds: Lavish Lifestyle & Loans
Reynolds told Vanity Fair in 2015, “I’ve lost more money than is possible because I just haven’t watched it.”
Apparently, he spent a great deal on real estate, along with a private jet, 150 horses, and about $100,000 in toupees.
Reynolds also owed $3.7 million to CBS that he could not pay back.
When he died in 2018, his net worth was up to $3 million.
Watkinssportswear, CC BY-SA 4.0, Wikimedia Commons
Meat Loaf
Meat Loaf is known for his role in the cult classic Rocky Horror Picture Show, along with his hit album, “Bat out of Hell. “
But following that success, he hit a financial road block and was forced to file for bankruptcy in 1993.
Super Festivals, CC BY 2.0, Wikimedia Commons
Meat Loaf
The road block came in the form of over 45 lawsuits, totaling a whopping $80 million. Meat Loaf went on record to say, “It was a game. Every time we got one case dismissed they’d throw another one at me.” Bankruptcy was his only way out.
CBS didn’t pay him royalties until years later. Luckily, things started looking up for Meat Loaf when his hit song “I'd Do Anything For Love (But I Won't Do That)” was released.
christopher simon, CC BY 2.0, Wikimedia Commons
Willie Nelson
Famous country singer Willie Nelson found himself in hot water back in 1990 when he found himself $16.7 million in debt.
He didn’t just lose all of his money—he lost everything.
Dwight McCann, CC BY-SA 2.5, Wikimedia Commons
Willie Nelson: Raided by the IRS
Nelson apparently owed all that money to the IRS after avoiding federal taxes for several years.
His lawyer negotiated his bill down to $6 million, but he still couldn’t afford to pay it, so the IRS raided his home and seized almost everything he owned—including musical instruments, his music collection, and twenty personal properties.
Nelson’s fans successfully organized fundraisers to help him settle his debt.
Today, Nelson continues to make music—and money.
Larry Philpot, Wikimedia Commons
Gary Coleman
Child star, Gary Coleman was making $70,000 per episode of “Diff’rent Strokes,” back in the ‘80s—but when the show ended, things took a dark turn and the consequences were ever lasting.
Gary Coleman: Mismanaged Money
Sadly, Coleman’s adopted parents and business advisor mismanaged his earnings, and he ended up with nothing by the time the show ended in 1986.
He had trouble finding work and eventually won a settlement against his parents and the advisor, but it wasn’t enough. He had to declare bankruptcy in 1999.
He ended up working as a security guard—but an assault charge landed him in how water. His anger only caused more legal issues for him and he never returned to acting before his passing at age 42.
His net worth upon his death was reportedly about $75,000.
Aaron Fulkerson, CC BY-SA 2.0, Wikimedia Commons
Wayne Newton
While Wayne Newton had a few hits in the ‘60s, he made most of his money as an L.A. lounge singer, even earning the title as “highest-earning performer” in 1983.
But by 1992, Newton was over $20 million in debt, and bankrupt.
Wayne Newton
Most of Newtown’s financial problems stemmed from the IRS. They sued him in 2005 for failing to pay $1.8 million on the sale of a house.
His other property, a 40-acre Case de Shenandoah estate was seized in 2010 because he didn’t pay off a $3.35 million loan.
Today though, his net worth is back up to $50 million.
Jason C. Winn, Wikimedia Commons
Larry King
One of America’s most recognizable faces in media, Larry King joined the bankruptcy club in 1978 after a whole slew of financial problems.
The TV host found himself in some trouble in 1971—and his career took a nose dive because of it.
Peabody Awards, CC BY 2.0, Wikimedia Commons
Larry King
In 1971, King was charged with grand larceny and accused of stealing $5,000 from his then-business partner. Luckily, the charges were dropped, but his career suffered and he fell deep in debt. By 1978, he declared bankruptcy.
Not long after, King was offered a national radio talk show, which later became “Larry King Live” on CNN—his career-defining opportunity.
Gage Skidmore, CC BY-SA 3.0, Wikimedia Commons
Cyndi Lauper
Before Cyndi Lauper made it big as a solo artist, with hits like “Girls Just Wanna Have Fun,” she was in a group called Blue Angel.
But the group suffered some downfalls, which ultimately led Lauper to declare bankruptcy before her name was even known.
Cyndi Lauper: Better Alone
The group’s first album was a flop, and their manager sued them for $80,000. Since had nothing to begin with, she had no choice but the claim bankruptcy.
The smartest thing she did after that though was going solo. She recovered quickly by releasing her hit solo album, “She’s So Unusual,” and went on to become a Grammy and Tony away winning artist.
Library of Congress Life, Wikimedia Commons
Toni Braxton
In 2012, singer Toni Braxton opened up about her money struggles in an interview with ABC’s 2020. She had admitted that she has had to file for bankruptcy, not once but twice.
The Heart Truth, Wikimedia Commons
Toni Braxton: Bad Luck
For the most part, Braxton’s financial struggles were a series of bad luck—and maybe a bit of bad spending.
Apparently, in 1998 she filed for bankruptcy because her recording contract paid her poorly. She also had a bad spending habit at the time.
Then, in 2008, she had to cancel a show due to ongoing health issues—which then forced her to file for bankruptcy again.
She still makes music today, and is now worth about $12 million.
Jamie Lamor Thompson, Shutterstock
Aaron Carter
Teen pop star, Aaron Carter was worth about $200 million at the height of his career.
But in 2016, he admitted to Us Weekly that he was in a “terrible position” financially, including that he had “no savings at all.”
His debt apparently reached about $2 million.
Paparazzo Presents, CC BY-SA 3.0, Wikimedia Commons
Aaron Carter: The Tax Surprise
Carter reportedly said, “When I turned 18, I got hit with all those taxes.” He didn’t earn enough money to cover them. That, coupled with bad spending habits, created a bad situation.
Along with claiming bankruptcy, Carter’s property was sold, and his personal property was seized—including electronics, jewelry, clothing, instruments, and accessories.
At the time of his unexpected death, Carter was worth about $400,000.
Teresa Guidice
Teresa Guidice, the “Real Housewives of New Jersey” star and husband Joe filed for bankruptcy in 2009 thinking it would solve their financial problems—but it only got worse from there.
The couple claimed they were $10 million in debt—but creditors had a different story.
Teresa Guidice
Apparently, the couple were hiding assets after claiming bankruptcy, and were then hit with a bankruptcy fraud charge, as well as other conspiracies to commit wire and bank fraud.
While they settled the case in 2016, they’re apparently still paying back taxes to the IRS and the New Jersey Department of Revenue.
David Cassidy
David Cassidy, The Partridge Family star was a 70s heartthrob who sold over 25 million records at the height of his career.
But in 2015, he filed for bankruptcy, claiming he was about $10 million in debt.
ABC Television Network, Wikimedia Commons
David Cassidy
Apparently, Cassidy had a history of charges for driving while drinking, which ultimately led to his divorce in 2014. He then put his mansion up for auction so he could finance the divorce.
The divorce was messy and costly, and his dependence problem continued to plague his bank account.
When he died a few years later, his net worth was about $500,000.
Allan warren, CC BY-SA 3.0, Wikimedia Commons
Isaac Hayes
Rock and Roll Hall of Famer, Isaac Hayes claimed he was $6 million in debt when he filed for bankruptcy in 1976.
How did he acquire so much debt?
Unknown Author, Wikimedia Commons
Issac Hayes
Much like the rest of them on this list, Hayes owed the majority of his debt to the IRS after failing to file taxes.
He also admitted to a “lavish spending problem,” and “putting too much trust in people,” when it came to managing his money.
He made up for it later when he went on to make more music, own two restaurants and write a best-selling cookbook. He had a net worth of about $2 million at the time of his death.
Everett Collection, Shutterstock
T-Pain
Rapper T-Pain went from having $40 million at the height of his career to being completely broke. He even said in an interview that he had to borrow money from someone just to get his kids Burger King.
What happened to his cash?
Toglenn, CC BY-SA 4.0, Wikimedia Commons
T-Pain: A Series of Bad Investments
T-Pain claims a “series of bad investments” and other bad spending habits caused him to reach rock bottom. He has since learned to “re-think the way he manages his money,” and is doing much better now financially.
_10.jpg){kind=link}
_5.jpg){kind=link}
_(rotated_4).jpg){kind=link}
.jpg){kind=link}
.jpg){kind=link}
.jpg){kind=link}
.jpg){kind=link}
