Most people look at the average celebrity, whether they be an NFL player, or an actor in a movie or TV show and dream of how easy life would be if they had the money and means that that person has achieved. However, it is these people who often wind up filing for bankruptcy and being forced to live a lifestyle that is a shadow of what they have become accustomed to.

Especially if you are first accustomed to humble beginnings, it can be easy to get carried away when fame and fortune hit you. Maybe you think your struggle to succeed gives you a right, or even a responsibility to live a more well-to-do lifestyle. Maybe your donations to charity along the way led the money to run out before you thought it could.

For all of us, what’s necessary to avoid bankruptcy or excessive debt is the ability to match our lifestyle with our income. When people have more money to deal with, it often takes more sophisticated money management strategies when it comes to making investments. No matter how much a person is gifted when it comes to playing sports, acting, or how much musical talent they have it doesn’t mean that money management is their forte.

In fact, Sports Illustrated reports that more than three quarters of NFL players feel financial strain within two years after retirement, and 60% of NBA players run out of money within five years of the end of their career. There are also many actors and entertainers whose careers run much shorter than they expected who also become candidates for bankruptcy.

Whether you are famous or not, landing your dream job can lead to a lot of optimism. It’s easy to celebrate by going shopping, only to find that that job was not quite as secure as you thought. Budgeting, keeping a rainy day fund and seeking trustworthy investment advice are all important preventative measures when it comes to making sure everything adds up the way it should. But sometimes much of the damage has been done before you are ready to admit your predicament. And sometimes, life throws us curveballs that cripple us financially. If that happens just about anyone may find themselves investigating their bankruptcy options.

Source: Fox Business, “Why Do Millionaire Entertainers and Athletes Go Broke?” Richard Ehrlich, May 29, 2012