In this article you will know what is the lifestyle Creep and a long list of celebrities who have gone bankrupt for falling for it.
Creating wealth requires two basic elements:
- Generate money. And the most important…
- keep it.
Some famous people are great at making money, but lousy at keeping it.
Examples of famous millionaires who went bankrupt
- According to the daily telegraph, the accountant who handled the finances of the king of pop Michael Jackson; he claimed that the artist was spending between 20 and 30 million more of his income a year.
- In 2012, basketball player Dennis Rodman’s financial adviser claimed that the athlete was bankrupt. The reasons were several years of extravagance and excessive spending.
- Courtney Love, wife of Nirvana singer Kurt Cobain; she vanished 27 million dollars from the band, in parties and unnecessary expenses.
- Thomas Jefferson, Founding Father and author of the Declaration of Independence, third President of the United States, with a salary of $500,000 in today’s money; he had a terrible addiction to wine, which left him penniless at the time of his death.
- The actor Nicolás Cage, who at some point in his career was the owner of 150 million dollars, a mansion, a private island and the fossil head of a Tyrannosaurus rex for which he paid 276,000 dollars; filed for bankruptcy in 2009.
- According to documents obtained by The Hollywood Reporter, Johnny Deep was spending $2 million a month. He spent $75 million on 14 houses, $18 million on a yacht and $30,000 on wine.
Just like these, there are many other stories of celebrities who squandered their money like Mike Tyson, Muhammad Ali, Tony Brixton and MC Hammer.
Illustration of Connor McGregor’s cat.
In fact, this addiction to spending can be seen today with the fighter Conor McGregor. A week after receiving $30 million in winnings from his fight with Floyd Mayweather, he bought a $12 million yacht.
Apart from the Lamborginis, BMWs, Rolls Royces and Land Rovers that he owns. Additionally, he has a house in Las Vegas valued at more than 20 million and a mansion in Dublin of more than 2 million.
As if that were not enough, he also owns a watch collection worth more than $300,000. If he continues like this, it is very possible that he will join the characters on the list above.
What is Lifestyle Creep?
Lifestyle Creep is increase living standards according to income. It is controlled by the desire to spend money on things that are desired but unnecessary. And unfortunately, it can easily become an addiction.
While the newspapers are full of stories of celebrities who earn huge sums of money and after a few years have nothing due to excessive spending; this lifestyle is not embraced by members of Hollywood.
If someone you know gets a promotion, chances are you’ll see them in no time with a new car or a better apartment. If they receive money from an inheritance you will see them spending it on the best vacations or you will even find others living on their credit cards.
These types of addictions are a great cause of divorces, stress and depression.
According to the Census Bureau Data, there are approximately 30 million people who earn more money than they need and yet have no savings; They live month to month. Just a payment away from poverty. Losing your job is enough to lose everything.
If you want to learn to save, this method can help you.
Conclusion.
Being a millionaire is not about how much money you make, but how much you can keep in your possession. So you must be careful not to fall into the lifestyle creep.
And remember, if you are really interested in creating your own business, you can read our book “How to create a company while working: Discover how to manage your time, manage your money and motivate yourself while creating a company and working for another” , where you will find all the information you need to found your own company, without having to leave your job.
