Just because someone is rich and famous, does not mean that they know how to manage their finances. Below are 7 examples:

Mike Tyson

The heavyweight champion has earned over $300 million throughout his boxing career. Yet his net worth is now less than $1 million. He filed for bankruptcy in 2003 once his debt reached over $27 million and slept in homeless shelters. Among his more extravagant purchases were two pet Tigers for $280,000 and a bathtub that cost $2 million. These days, Tyson is living pay check to pay check and is “totally destitute and broke.”

Heidi Montag

The Hills reality star, known for her many plastic surgeries, is living with her husband Spencer Pratt, in Pratt’s parents’ guest house. The couple made $10 million from their reality show, but blew it on plastic surgeries, a failed music album for Heidi, private jets, six cars, and a Malibu retreat, according to USA Today. Spencer Pratt does not have enough money to pay his agent’s commissions and says that they “should have been low-key and saved.”

Michael Jackson

At the time of his death, the late King of Pop was so deep in debt that lawyers for Dr. Conrad Murray, are using it as his defense; apparently Jackson was so deep in debt that he killed himself. Although that allegation is speculation, he was, in indeed, hoping that his pending London concerts would ease the $400 million worth of debts he had looming over him. Fortunately, for Jackson’s estate, he also had assets that were worth $1 billion. Furthermore, last year, his estate made $170 million from sales of his music and This Is It movie. And, in 2010, his estate made $275 million.

Johnny Unitas

Unitas may be one of the greatest football players of all time, but he lacked business sense. He invested his money in land, restaurants, bowling alleys, a shipping company, and a circuit board producer; all ended up being unsuccessful investments. He filed for Chapter 11 bankruptcy in 1991.

Nicholas Cage

According to NBC Miami, Cage, at one point, owed $14 million to the IRS. The good news for him is that he has since paid it off. He blamed his financial troubles on bad business management, which didn’t take care of his taxes and invested his money in risky real estate investments.

Willie Nelson

The country singer declared bankruptcy in 1990 when he couldn’t pay off the IRS to the tune of $16.7 million. However, he managed to pay back his taxes in 1993. In order satisfy $3.2 million of the debt, he released “The IRS Tapes: Who’ll Buy My Memories?” in 1992.

Lindsay Lohan

According to TMZ, Lindsay Lohan failed to pay her 2009 federal income tax, which amounted to $93,000. The IRS will go after her tangible assets if she refuses to pay. In 2010, TMZ also reported that she didn’t pay her rent on time.

Just because a celebrity goes into debt, does not mean that he or she is going to be attending a career fair. Sure, they may have to cut back on their extravagant purchases, but their fame will keep them afloat for the rest of their lives through cameo appearances, sponsorships, and other paid gigs. Of the seven aforementioned celebrities, only Heidi Montag has fallen completely from fame and fortune. According to the Daily Mail, she and her husband “spend their days holed up in Santa Barbara watching movies and eating Mexican food.”

Nickolay Lamm protects consumers from scams at InventHelp Scam.

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