5 Celebrity Money Habits You Should Never Copy
Celebrities — they're just like us. They put their pants on one leg at a time. They like their coffee a certain way. And they make mistakes, including mistakes with their money.
Where you and the superstar singer whose concert tickets cost more than your mortgage payment — or that actor you've always adored — differ is in the scale of those mistakes. After all, most people will never earn (or lose) millions of dollars in their lifetime.
Yet that fate has befallen celebrities ranging from it-girl icons to Academy Award-winning actors to chart-topping rappers. Even if you're not dodging the paparazzi while stepping out of your local Starbucks, you can still learn from their examples. MoneyLion took a seat on the Hollywood sign and whipped out the binoculars in search of horrible celebrity money habits you absolutely should not copy.
1. Staying Disengaged From Your Finances
By now, Johnny Depp is nearly as well known for his extreme overspending as he is for his iconic roles. But even Edward Scissorhands would want to prune away some of Depp's more frivolous expenses — including millions of dollars on luxury cars, roughly $30,000 to fly wine to his home, and an estimated $75 million spent on 14 properties around the world. Some of these details came to light during lawsuits between Depp and his former money manager, Joel Mandel, as well as testimony related to his divorce from Amber Heard.
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While it's tempting to attribute Depp's serious money woes solely to indulgence, reporting from outlets such as Business Insider suggests a deeper issue: detachment from his own finances. In coverage of Depp’s financial disputes, Mandel described the actor’s spending as becoming increasingly irresponsible over the 17 years he worked with him.
According to Business Insider, Mandel also suggested that Depp's struggles with substance abuse may have further contributed to his lack of engagement with day-to-day financial decisions.
The takeaway for everyday people: No matter how much you earn, you cannot afford to be hands-off with your money.
2. Caring More About Looking Rich Than Saving Wisely
To see rapper 50 Cent — born Curtis Jackson III — decked out in designer clothes and gold jewelry fit for Fort Knox, you might assume he was set for life. That image was intentional, and it eventually backfired.
At the height of his financial troubles, Jackson reportedly posed with fake money while dealing with failed business partnerships, monthly expenses exceeding $100,000, and mounting costs tied to luxury cars, jewelry and real estate. These pressures ultimately contributed to his 2015 Chapter 11 bankruptcy filing.
Jackson has since rebounded through savvy business ventures, often describing bankruptcy as a financial reset.
The takeaway for everyday people: Lifestyle creep can quietly drain incomes of any size, and looking wealthy is not the same as being financially secure.
3. Making Poor Real Estate Investments
Real estate can be a smart investment, when purchases are grounded in market fundamentals, long-term planning and sound advice. Without those guardrails, you could end up like Nicolas Cage, who went from winning an Oscar to taking direct-to-streaming roles after a series of poor financial decisions.
Much like his acting style, Cage's property tastes were eccentric. After winning an Oscar, Cage embarked on a buying spree that included European castles, private islands, allegedly haunted mansions and ultra-luxury homes — many purchased on personal whims rather than strategy. Remember, this is the same man who named his son Kal-El.
Overspending, paired with the housing market collapse and millions owed in unpaid taxes, sent Cage spiraling into debt, forcing him to sell off assets and take a high volume of acting roles to regain his financial footing.
The takeaway for everyday people: Even “good” assets can turn bad when emotion replaces planning.
4. Not Paying Your Taxes
As a headline on the Faucher Law website put it: "Not Even Lindsay Lohan Can Hide From the IRS — Nor Can You."
Lohan learned this lesson the hard way in 2012, when the IRS seized her bank accounts over approximately $233,000 in unpaid federal taxes. The IRS is not known for being starstruck.
Lohan appeared to operate under the assumption that future work would cover present-day obligations like taxes. As opportunities slowed, that assumption unraveled quickly.
The takeaway for everyday people: You can't assume a strong financial future. You have to save, invest, plan — and above all, pay your taxes.
5. Failing To Review Your Contracts Carefully
If you've ever belted out "Unbreak My Heart" into a hairbrush, you have Toni Braxton to thank. The singer has moved millions with her voice and songwriting — but her first record deal left her deeply underpaid.
Braxton has said that despite her debut album selling millions of copies worldwide, she received a royalty check for just $1,972. Braxton later filed for both Chapter 7 and Chapter 13 bankruptcy at different points, she ultimately rebounded through television, Broadway and more favorable business arrangements.
The takeaway for everyday people: Never sign what you do not fully understand. Even for those whose best singing usually happens in the shower, it's crucial to carefully review every contract you're asked to sign — or have an expert do it for you. If something doesn't seem right, don't be afraid to negotiate.
The Bottom Line
You may never need to film a direct-to-TV movie to pay for a European castle or fly wine across the world, but the core lessons still apply. Stay engaged with your finances, avoid lifestyle inflation, invest thoughtfully, pay your taxes and read every contract. Fame is optional — financial discipline is not.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal, or tax advice.
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