Money Management Skills Helps Prevent Bankruptcy

To the average American, entertainers are at the top of the food chain when it comes to making money. It is no big secret that, although entertainers can make a great deal of money, not all of them have money management skills. They often file for bankruptcy protection. Nevertheless, if the average person who has money management skills made the kind of money entertainer’s make, their skills would certainly help prevent bankruptcy.

Judge Judy Sheindlin

Does Judge Judy Sheindlin have money management skills? (Photo credit: Wikipedia)

As an example of the amount of money you might have to manage if you were an entertainer, this article will take a look at the television entertainment industry. The television industry is much easier to track than the movie industry, and the average American can most likely associate with television entertainers because they see them more often on a daily basis.

If you think the highest paid entertainer in the television industry is a talk show or game host, you would be wrong. The highest paid television entertainer is Judge Judy. She is paid a reportedly $47 million a year for her job on The People’s Court. I do not know how Judge Judy manages her money, but there is no indication she has ever faced bankruptcy. She has been sued several times over the years for judgments she rendered on the show. Some she won and some she lost.

Jay Leno is no longer the highest paid talk show host. He recently took a cut in pay to a paltry $20 million dollars a year, about what David Letterman makes. Jon Stewart is the new king of talk shows. He makes an estimated $30 million a year.

Ashton Kutcher, a renown movie industry actor, gets $750,000 for each episode of “Two and a Half Men.” Matt Lauer, a news anchor for NBC, makes a reported $22-25 million a year, and yes, I consider the news these days as entertainment.

These are just some of the entertainers making big money in the entertainment filed of television today. The average American, like myself, who can squeeze blood out of turnip when it comes to a budget, would love to have those kinds of figures to live on. Managing money is a valuable skill and not everyone has it. However, the skill can be learned.

Many of the television celebrities from the past could have used training on money management skills. Famous celebrities like Gary Coleman of “Different Strokes,” Sherman Hensley of “All in the Family,” and Wayne Newton who first appeared on the Jackie Gleason Show at age 19, could all have learned valuable lessons from money management skills classes. They all filed for bankruptcy protection during the height of their careers.

Filing for bankruptcy protection is not germane to older celebrities. Gary Dourdan, star of “CSI,” filed for bankruptcy protection recently while making over $14 thousand a month. Jim Davidson, Britain’s highest earning television entertainer, is currently facing bankruptcy after losing his job at BBC’s “Generation Game.”

The point of this article is to demonstrate that making large sums of money does not always guarantee you will not have to file for bankruptcy protection at some point in your future. In order to avoid bankruptcy, money management skills are required at whatever level of income you make.

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