Why Celebrities Run Into Money Trouble

Money is always an interesting topic whether we talk about the rich or the poor.

I went from having barely enough money each month paying my student loans, rent, car insurance, health insurance, food, etc. on less than $20,000 a year.. and then all of a sudden .. I'm making $70,000 a year just by quitting a lousy severely underpaying job and going to a few better ones that paid more and allowed me more freedom. I spend a little more on things that I want.. especially technology items and video games, etc. And I'm more charitable when it comes to paying for lunch or dinner or getting gifts for friends and family.

There is definitely a high you get from making more money, but there is the reality that should be in the back of everyone's mind: Let me put a bunch of this money away because NOTHING LASTS FOREVER. Once I pay off my student loans, a majority of the money will be saved away into a high yield money account, stocks, bonds, or a "backup" bank account.

But I am definitely not running out getting new cars, houses, or anything expensive like that. My life is still pretty much the same. I'd rather continue to save and use my money to travel- see new places and meet different people.

I see myself as fairly responsible with money. I know plenty of people who aren't. And certainly, there are many celebrities who do not have any idea how to manage their money, and it's insane that... millions of dollars is burned up and lost just like that in their lives.

This is a note to anyone who comes into, earns it, wins it, or whatever: DO NOT GO OUT AND SPEND THE MONEY IMMEDIATELY. DON'T BRAG TO YOUR FRIENDS OR FAMILY OR ANYONE. KEEP HUSH ABOUT IT UNTIL YOU FIGURE OUT HOW TO MANAGE IT. MAKE A PLAN AND ALLOW YOURSELF AN ALLOWANCE. INVEST SOME OF IT IN GOOD PLACES THAT MAKE MONEY. MONEY MAKES MONEY.

FIGURE OUT HOW TO SPEND IT AND MAKE IT LAST FOR THE REST OF YOUR LIFE. Better yet, consult a financial adviser if you don't trust yourself, and ask them to determine how much you can spend each day, week, month in order for you to remain comfortable.

It is great to have money. But make sure you remember the times when you were less than a paycheck away from broke, and a sick day was not even possible.

If you are making more than minimum wage or even $5 above minimum wage, consider yourself one of the lucky few who has found a job that pays something. Because the reality is.. the majority of the population, and the majority of the world is making and living on or far less than minimum wage ($7.25 in NJ)

Matt of NJ 8:58PM December 28, 2012