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| Source:http://onlyagame.wbur.org |
Before I get into the details of exactly how celebrities try to spend their money, I’ve decided to look at what celebrities do to actually make them go bankrupt. To do this, I have looked at arguable one of the most famous and potentially the worst celebrity bankruptcies of all time: the bankruptcy of MC Hammer, which has been chronicled in the article “Everything MC Hammer Blew His Fortune On”. MC Hammer is just one of many celebrities who all do the same thing; they get so much money that they start to feel “invincible” and spend it on items that they really don’t need. This then leads to extreme debt and therefore filing for bankruptcy.
MC Hammer had the success that so many people dream of. One of his most successful albums, Please Hammer, Don’t Hurt ‘Em, was “the first hip hop album to sell over ten million copies”, which was a huge step for not only himself, but it also paved a way for hip hop music. During the year of 1991, what most say was the peak of his career, MC Hammer was “earning upwards of $33 million” and continued to make that for a few years after that. It seemed like MC Hammer had everything:fame, money. How could all of this just vanish in matter of years?
One of MC Hammer’s major downfalls what the amount of money he started spending on things that he really didn’t need and that were honestly quite excessive. For example, according to my article, Hammer had about 200 people working for him. He also had an entourage with 40 people in it! Total money lost during this time? About $500,00 PER MONTH. He also spent over $30 million in his lavish house with a “17-car garage”, pools, a tennis court, home theater and more. He also spent millions more on helicopters. As one can see, that can put a “slight” dent into one’s savings.
Looking at the big picture, one can clearly see that one of the major reasons MC Hammer became so in debt was because he was overspending so much; he couldn’t keep up with all of the money he was dropping. When I read this article, I was astonished to see what exactly he was spending his money. I couldn’t believe was dropping ½ a million dollars on an entourage. What is the point of that?! He was spending money on things that he clearly didn’t need! Just because you are a celebrity and make a lot more money than most people do, that doesn’t mean you can just go crazy and spend your money on anything and everything. There has to be a balance:yes, you have the ability to splurge, but you still also need to save your money.
Clearly, Hammer is like the worst case scenario of losing an entire fortune and having to file for bankruptcy. Celebrities are people just like us; there has to be ways that they make sure that they save their money and ensure that they have money to live off of for the rest of their lives. From this article, I’ve learned that if celebs don’t spend their money on things that they really don’t need, then they probably won’t fall into bankruptcy like many celebrities have because they spend their money unwisely.
In my next blog post, I will research what “frugal” celebs do to save money. Do they cut coupons? Do they buy stuff on sale? How do they exactly save money? This will allow me to see celebs on both sides of the bankruptcy spectrum.
It's interesting how quickly the money can go to his head and he feels the need to spend. Nobody needs to have an expensive entourage, a 17 car garage, or helicopters. It's too bad that he spent his money on all these eccentric goods and not on either saving for later or helping the less wealthy (unless his entourage counts for that)
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ReplyDeleteThis blog post is interesting because it gives insight in to the head of a celeb, and their reaction when all of a sudden they are very wealthy. They do not kow how to manage their money because alot come from pooor backrounds. Recently I watched the tv series Entouage, and the shoe is exactly that! The show follows an actor and his entouage while they spend and party all his money away.
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