Here’s a hypothetical situation. Let’s say you’re a single mother with two children to support. Let’s also say, for the sake of argument, that thanks to royalties and such you earn $737,000. That is $737,000 a month. 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.
Banking Deal: Earn 1.55% APY on an FDIC-insured savings account at CIT Bank.
Not if you’re Britney Spears, according to court papers reviewed by CNN. 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?
Britney’s spending habits certainly paint a picture.
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.
Updated October 13, 2016 and originally published November 6, 2007.