You may not make millions of dollars in your lifetime, but you certainly can learn a few financial lessons from these once-rich, now not-so-rich Rock Stars.


  1. Say Yes To Everyone

Generosity, though well intentioned, can cost more than one can afford. Ted Nugent, known for his generosity and non-profit organization, still ended up broke.


TRY: An empathetic ear and polite answers not only help your friend, but will save you heartache and cash in the long run. It’s okay to say NO.


  1. Blow Income and Earnings

MC Hammer rewarded himself for his good fortune by buying a $30 million house and employing a full staff costing half a million each month. Before he knew it he was $13.7 million in debt.


TRY: Take your earnings and tuck it into a savings account, or pay off some debt. You deserve a reward for your efforts; let that be peace of mind.


  1. Don’t Budget

“I Heard It Through The Grapevine” star, Marvin Gaye, depleted his bank account thanks to extravagant spending.


TRY: Detail your monthly expenditures, cut out the unnecessary, and satisfy it with what you have coming in.

This will help you see where you need to cut, or if you need to increase your income.


  1. Use Your Credit Card

Stars are known for easily buying everything they need (or want). Credit cards make it easy. Billy Joel declared bankruptcy not just once but multiple times.


TRY: Having good Credit is useful. Using a Credit Card is a terrific way to earn good Credit, but only use a Credit Card when you know you can pay it off as soon as you charge it. Reckless use of a Credit Card lands Rock Stars and everyday people like us in big time debt.


  1. Don’t Plan for Retirement

Rock Stars don’t have to worry about retirement. They’ll always have an income, or so they think. During his heyday, David Crosby’s income was grand. He never imagined his once robust career would decline causing him to file for bankruptcy.


TRY: Include a monthly Savings For Retirement section when you plan your budget. When you have enough, consider investing it in an Interest Earning Account to help increase the savings over the years.


  1. Trust Anyone & Everyone

“Unbreak My Heart” made $170 million, but Toni Braxton made less than $2,000 on it. She could have made a better deal if she had a trusted Accountant calculate Estimated numbers for her.


TRY: Make sure to carefully choose who you invest with. Search for trustworthy and professional assistance in managing your money.




Steven Z. Freeman, CPA provides trustworthy and professional Tax Planning and Business Accounting and can assist you with these services. If you have any questions on this matter, or to schedule an initial consultation, Please call us at (805) 495-4211.

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