Even if you’re a big spender surely close to $9,000,000 a year and the income generated from investments of that money will allow for a solid future for yourself and your kids.
Not if you’re Britney Spears according to. The former pop princess doesn’t save or invest any of her income. Is she financially reckless? Or does she simply believe that this income will always be present?
Spears’ monthly expenses include $49,267 in mortgage for two houses. $16,000 for clothes and $102,000 on entertainment gifts and vacation according to her financial declaration… Spears declares she spends about $4,758 per month dining out. Meanwhile she spends zero on education savings and investments and gives $500 a month in charitable contributions the documents said. She has to pay her ex-husband $15,000 per month in child support and $20,000 in spousal support.
It seems to me and it’s no surprise. Spears has income to spare. Think of the possibilities of a $9 million income a good portion of which possibly guaranteed for the rest of one’s life for someone who handles their finances with sanity. I dream of starting a foundation. I could do that and have a nice house and provide every conceivable opportunity for my theoretical future children for the amount of money this particular has-been wastes every month.
Wow. I am having a hard time even wrapping my head around the idea of making $737,000 per year let alone per month.
I wonder if having that much excess income could alter even those with financial sanity to some degree. I like to think that I am financially responsible and feel that I am doing fairly well to support the efforts that are important to me on my current salary.
It would be interesting to see how other people earning millions per year spend their money. It is easy to be critical of Britney but what are some of these athletes doing with their $10-50 million per year?
On that matter. $15k on child support and $20k on spousal support…per month is just insane. Child support should be for supporting their basic needs – food clothes etc. Spousal support is ridiculous – the guy obviously has the ability to make money but wastes it (gross income of 7k on a 500k income – you’ve got to be kidding!).
Careful not to be too hasty with this judgment. Pop superstars (like sports superstars) are certainly overpaid by these standards but the vast majority of talented entertainers are just normal folks making a living some struggling to do so. Sensations like Britney Spears are rare (but they get the most amount of press obviously).
As far as the population of famous actors/musicians/athletes are concerned. I’m sure it is similar to the “normal” population in that some are savers and some are spenders. We’ll see how Britney is doing in 20-30 years.
On that note I’ve heard that LeBron James is a big fan of Warren Buffet and has a goal of becoming the first athlete billionaire via investing and saving.
Nice post although I must admit I wasn’t EVER expecting your site to have an article tagged “britney spears”.
While Ms. Spears is definitely to blame. I also blame financial advisers for not being able to land this whale! You could make a great pitch make safe investments with her money and take a $500k/year salary and she wouldn’t bat an eye. I don’t think anyone consciously thinks “I don’t need to save!” and if a qualified person could convince her it would take 0% of her time without greatly influencing her spending. I think you’d be golden.
I saw this article and I thought to myself this is a great example of lifestyle inflation to the extreme. It goes to show that making money does not solve anything. Financial literacy which leads to keeping and growing your money is what’s important. I wouldn’t say celebrities are overpaid as there is a reason they get paid so much and not everyone can do it. Look at some stars who go out and re-invest start businesses and become moguls. The Olsen twins are an example of that. Granted it could just be the advisers around them who are building their wealth.
I think I heard that Lebron met with Warren Buffet and they had a meeting about growing his wealth. I guess at every level of income there is a relative level of frugality and financial responsibility. I would even dare say that some stars who spend $1M a year are actually being frugal compared to others who make the same amount of money.
Unfortunately Britney might end up in a situation like Michael Jackson where the money is getting dry..
Now now Flexo. She isn’t a HAS-BEEN yet…otherwise she wouldn’t be pulling down $700K a month. Give her some time. But this is mind-boggling.
By the way. I am not sure if it is my browser settings but I could not see the anti-spam word window so I had to listen to the file. (update: now I see the word…weird.)
What a moron. Ok maybe thats harsh. My life certainly hasn’t been the model of financial responsibility. But wow that is extreme. Hopefully this going public will be a wake up call. If she continues to handle her money the way that she handled her children it won’t be long before there’s nothing left at all. Its sad that our society idolizes someone with so little intelligence and integrity.
Let’s not be too hasty here. I’ve been reading all over the blogosphere about this today and everyone seems to be jumping to very hasty conclusions. Now. I’m no fan of Ms. Spears but basing our assumptions on here REAL savings based on court papers filed during a custody/divorce case seems a bit one-sided of everyone. Keep in mind that it behooves Ms. Spears to grossly underestimate here real net worth during those proceedings and to downplay any savings and investments she might have in order to reduce the amount she’d need to pay for childcare and “spousal support”. Plus anyone earning the kind of money she does would by necessity have to retain the services of some smart accountants who would be able to prove that she “spends” a lot of money in order to write off as much as possible for taxes at the end of the year. Lastly her monthly income is based on her current working income PLUS investment income. She is already worth over $100 million due to previous and ongoing investments so if you believe she hasn’t already provided for her and her children’s futures you are most likely mistaken.
Granted spending money like she does is asinine and without merit. The most glaring piece of information being that she only donates $500 a month to charity. But then again if you had the kind of money she does and knew that you would most likely never need to work again for as long as you lived why wouldn’t you enjoy spending some? Anyone want to guess what Bill Gates spends a month?
Secondly. I’m sure they’re working overtime to hide her income and assets from her ex-husband.
Third a huge portion of that income goes to taxes her agents her security her attorneys her stylist (who needs to be fired) her managers her assistants her maids et al.
Fourth for better or worse she has many streams of passive income that will likely be there long after she dies no matter WHAT she does. Sure she could be a billionaire or incredible philanthropist if she tried but she’s not exactly being financially reckless—emotionally and mentally and physically reckless perhaps but her finances are pretty strong.
Fifth she’s actually still working and her new album is selling well. Plus she has a lot of untapped income opportunities.
Sixth she’s really freaking young! She’ll probably wake up one day and quit spending quite so much money start investing start giving it to charity—if nothing else out of boredom.
Meg & GeekMan: I hope for Britney’s sake you guys are right. I suppose the intent in her papers is to show as little wealth as possible to reduce her required payments to her ex-husband. It’s hard to know what really goes on—as spectators we only see what the media show us. It doesn’t
like her kids are being put in a position where they will be well cared and set for the rest of their lives without any need unprovided but who really knows.
I’m going to with Meg here. Brit’s not investing wisely but both she and her boys will be receiving royalites for the next hundred years. Even if all her other income dried up this would support her handsomely.
It’s the same reason Michael Jackson will never go broke despite reports of his overspending. Besides the rights to his own music. Jacko owns the entire Beatles catalog. (He outbid McCartney for it in 1984.) He will never ever live poorly since he’ll always collect residuals.
sliput: the point we’re trying to make is that Brit is not using her income “wisely,” at least according to the court papers. Is she spending less than she’s earning? Maybe… Does she need to use her money “wisely?” No she has a lot of room to wiggle. Could she give her kids better opportunities and really take care of them if she chooses to? Yes. Could she give back more to the world that has given her so much whether deserved or not? Yes.
BUT it is not “excessive.” Why? Because we live in a free-market economy. Athletes and stars like Spears and movie stars make that much money because they CAN.
I’m not saying I agree with it but that’s a part of our economy. Our focus should be on her—and our—spending if we are broke all the time.
Enter your comments below. Please note: Use of a non-personal web site or blog in the field below and/or comments that are off-topic personal attacks or support requests will likely be removed at my discretion.
Copyright of comments belongs to the comment author but I reserve the right to edit comments for formatting or content.
The authors of Consumerism Commentary are not professional financial advisers and no text within this website should be considered financial advice. Any individual who makes financial decisions based solely on the information contained within does so at his or her own risk. Always consult a financial professional.
This website contains advertisements usually listed as “sponsors.” Some links are for products or services for which Consumerism Commentary is an "affiliate." No articles within the blog are advertisements disguised as blog entries. Consumerism Commentary is not compensated for any content except for advertising sold. This site contains no Pay-Per-Post (or similar) articles.
Forex Groups - Tips on Trading
Related article:
http://www.consumerismcommentary.com/2007/11/06/britney-spears-doing-nothing-with-a-six-figure-monthly-income/
comments | Add comment | Report as Spam
|