Are you a celebrity? What does that mean anyway? It means that a set person / personality is a considered to be a star: someone who is above the rest of us regular people; if there are in fact such entities. Celebrities, even though they are usually wealthy, nevertheless seem to have many challenges with their finances.
These issues are partly due to a massive entourage for whom they need to provide necessities and luxuries. Other factors that may affect their budgeting include: large parties, eating out at restaurants regularly, purchasing expensive clothes and cars, buying huge houses, as well other areas of expenditure. There are also set industry membership fees, which celebrities may need to pay; such as Sag-AFTRA dues and dues to music industry associations. These hefty dues can add up to large bills.
Celebrities like to live life to the fullest, therefore, their Accountants may not compel them to pay industry dues, when they are actually due. Instead these dues will be deferred to a future date; all the while interest may be accruing on the membership fee. Other compulsory fees, such as taxes, which if not paid when due will accrue interest and penalty fees.
Why don’t Accountants and Lawyers who are paid extremely well to represent and manage the accounts and interests of celebrities not guard them from potential penalties? Whether the matters be financial or legal, as may be the case for tax evasion, Accountants and Lawyers should safeguard their celebrity clients to ensure their continued wealth and financial stability.
Is it true that an average celebrity, is only one party away from bankruptcy? There are television shows that seem to propose this reality. How can it be that for celebrities who have such a high status in society and so much money there is no wealth and no one to trust? Perhaps there is a solution to the celebrity syndrome.
A celebrity could draw a salary, from their earnings, consisting of only ten percent of the money they receive. This principle is based on the theory of David Chilton, author of the Wealthy Barber. The remaining ninety percent could be allotted as follows: fifty percent for retirement, twenty percent for bills (butlers /maids, mortgage, taxes, Accountant and Lawyer), twenty percent for parties, restaurants, and a fun social life.
Celebrities, whose lifestyles are likened to royalty, may not be able to focus their attention on matters of importance. They may mistakenly assume that one of their paid professionals is always managing their financial affairs, with the utmost integrity. But is it possible to find trustworthy friends, when one has massive wealth and status? Can a celebrity maintain their star studded lifestyle, for the life of their career?