Being a successful actor often comes with millions in earnings, but that doesn’t guarantee financial security. Even with a steady stream of income from hit movies, many celebrities find themselves broke. With good money management, you’d think it’s nearly impossible to lose it all.
Yet, the truth is much different. Even the most successful actors aren’t immune to financial pitfalls. From poor investments to bad decisions, losing a fortune is more common than we might assume.
While it seems hard to believe, there are countless stories of well-known actors who went from fame to financial ruin. Whether it’s through mismanagement, bad advice, or other personal struggles, these stars show that money isn’t always enough to guarantee a secure future.
Nicolas Cage
Nicolas Cage, a talented actor with an Oscar win and a famous family name, made millions over his career. His film roles in “Leaving Las Vegas” and “Adaptation” were just the beginning, leading to a fortune that would eventually be overshadowed by headlines about his reckless spending.
Cage’s purchases were extravagant. He bought a rare Superman comic for $150,000, a $276,000 dinosaur skull, and multiple properties, including castles in Europe. But things took a turn when the IRS filed a $6.3 million tax lien against him, forcing him to sell the comic book and surrender the stolen skull.
In an interview with The New York Times, Cage admitted to his financial mistakes. Despite the setback, he refused to file for bankruptcy, choosing instead to work through his troubles. Between 2017 and 2019, he filmed 20 movies to regain his fortune.
Kim Basinger
Kim Basinger, known for roles in films like “8 Mile” and “L.A. Confidential,” had a successful career, including an Oscar win. However, it wasn’t one of her iconic performances that landed her in financial trouble, but a legal battle over a movie she didn’t even star in.
In 1991, Basinger pulled out of “Boxing Helena,” leading to a lawsuit from the film’s studio. The court initially ordered her to pay over $8 million, though that was later reduced on appeal. Still, she filed for bankruptcy, stating the damages were far beyond her net worth, eventually settling for $3.8 million.
In addition to the lawsuit, Basinger’s finances took a hit due to an unusual investment. In 1989, she and investors spent $20 million to purchase a small Georgia town with big plans for a movie studio and restoration projects. However, these dreams were never realized, and she began selling off parts of the town during her financial struggles.
Stephen Baldwin
Stephen Baldwin, part of the famous Baldwin acting family, didn’t have the most successful career. While he had a standout role in The Usual Suspects, his financial struggles began a decade later, overshadowing his acting achievements.
In 2006, Baldwin struggled to sell his New York home, eventually stopping mortgage payments altogether. By 2009, he filed for bankruptcy, revealing he owed $1.2 million on two mortgages, while the house was only worth $1.1 million. Adding to his troubles, he also had $1 million in back taxes and $70,000 in credit card debt.
Despite his financial setbacks, Baldwin held onto the house until 2017 when the bank was finally allowed to auction it off. His issues didn’t stop there; in 2013, he faced a $400,000 tax bill for unpaid taxes, though it was later reduced to $300,000 after further disputes.
Gary Coleman
Gary Coleman became a star as a child actor on Diff’rent Strokes in the late 1970s. However, when he turned 18, he discovered that his trust fund, meant to protect his money, was nearly empty. Instead of the expected $18 million, there was just under a quarter million left. After suing his parents and representative, he was awarded only $3.8 million, far less than he’d earned.
Coleman’s financial issues continued despite his small victory. Although he appeared in occasional guest roles, he had to take regular jobs, including working as a security guard. In 1998, he lost that job after an altercation with an autograph hunter, and by 1999, he filed for bankruptcy.
When Coleman died in 2010 at the age of 42, his will requested a wake to be held by people who had no financial ties to him and truly cared for him. His tragic story highlighted the lasting effects of early financial mismanagement.
Burt Reynolds
Burt Reynolds enjoyed a successful career in the 1970s and ’80s, starring in hits like Smokey and the Bandit and Deliverance. He spent lavishly, acquiring properties, horses, a private jet, and investing in two restaurant chains. Unfortunately, the restaurants failed, leading to a significant loss of his fortune.
Reynolds also faced a costly and public divorce from Loni Anderson in the 1990s, which drained his finances further. Anderson later sued him for unpaid child support, and the legal battles continued until Reynolds settled in 2015, paying her everything owed from their divorce.
In 1996, CBS demanded he repay $3.7 million, prompting Reynolds to file for bankruptcy. Despite his financial struggles, Reynolds later admitted that his only regret was not spending more money and having more fun during his life.
Debbie Reynolds
Debbie Reynolds, known for her acting talent, faced a series of personal and financial setbacks. Her divorce from Eddie Fisher, who left her for Elizabeth Taylor, became infamous. On top of that, her daughter Carrie Fisher’s Star Wars fame overshadowed Reynolds’ own career, while her finances were in turmoil due to her second husband’s gambling addiction.
In the 1970s, Reynolds began collecting Hollywood memorabilia, which led to her disastrous investment in the Debbie Reynolds Hotel & Casino in 1992. Although the hotel was cheap to buy, renovations cost millions, forcing Reynolds to borrow heavily and sell off jewelry to fund the project. Despite her efforts, the venture quickly became a financial burden.
The hotel lost millions annually, and in 1997, Reynolds was forced to file for bankruptcy after failing to sell the property. The financial troubles she faced marked the end of her extravagant dreams.
David Cassidy
David Cassidy became a star in the 1970s on The Partridge Family, but despite the massive merchandising profits, he saw little of the money. He claimed the studio made $500 million off his name, but he only received $15,000. Cassidy was the first to renegotiate his deal, but his share was small compared to what he felt he deserved.
His financial troubles grew over time. Despite selling 30 million records, Cassidy filed for bankruptcy in 2015 after spending over $2 million on properties, including a mansion in Florida and land in the Bahamas. He also owed large sums to creditors, including Wells Fargo and a lawyer.
Cassidy’s bankruptcy documents revealed that he was spending $15,000 more a month than he earned. His wife filed for divorce during this period, and Cassidy had to auction off his possessions to pay his debts.
Sinbad
Sinbad filed for bankruptcy twice. His first attempt in 2009 was denied due to improper filing, but in 2013, his bankruptcy was accepted. He owed nearly $11 million to creditors, including $8.3 million in back taxes and $400,000 to American Express. His reported assets totaled just $131,000.
According to Sinbad, he lost most of his money by self-funding business ventures and paying employee salaries out of pocket. He kept thinking that one more big movie would fix everything, but that movie never came. He tried to honor his debts but found himself buried under fines and increasing bills.
During the bankruptcy process, Sinbad was required to take a course on personal financial management, which he later said he passed. Despite claims of living extravagantly, he defended his spending, explaining that his possessions were mostly gifts or long-time items.
Mickey Rooney
Mickey Rooney’s life was filled with highs and lows. He was a major Hollywood star by 19, starred with Judy Garland, and earned $12 million before 40. However, his personal life was tumultuous, with eight marriages and a history of financial mismanagement.
Rooney had a penchant for gambling, losing large sums even when he made $20,000 per week in Las Vegas. He filed for bankruptcy in 1962, owing $500,000, and again in 1996, this time due to $1.75 million in back taxes. By 2005, at 85, he was still performing because he had no money.
In his later years, Rooney suffered abuse at the hands of his eighth wife and stepson, who allegedly embezzled $8.5 million from him. When he passed away in 2014, he had only $18,000 to his name.
Zsa Zsa Gabor
Zsa Zsa Gabor was a fixture in Hollywood, known more for her beauty and multiple marriages than her films. Her fame grew again in 1989 when she was jailed for slapping a traffic cop. Despite her attention-grabbing lifestyle, financial struggles followed her.
In the early 1990s, Gabor’s properties lost value during the recession. By 2009, it was revealed that she had been swindled out of millions by Bernie Madoff, losing between $7 and $10 million. This added to her mounting financial issues.
Her feud with actress Elke Sommer compounded her troubles. After a bitter interview, Sommer sued Gabor for libel, winning a $3.3 million judgment. The following year, Gabor filed for bankruptcy.
Gary Busey
Gary Busey gained fame in the 1970s with roles like “The Buddy Holly Story,” which earned him an Oscar nomination. However, after a severe motorcycle accident in 1988, his personality changed, and this likely contributed to his financial troubles.
By 2012, Busey filed for bankruptcy, claiming over $500,000 in debt and under $50,000 in assets. His attorney compared the bankruptcy process to major companies like General Motors, framing it as a strategic move to move past poor decisions and circumstances.
Although the bankruptcy allowed Busey to discharge some debts and keep his assets, the IRS wasn’t so forgiving. Most of his debts were owed to the government, and after the bankruptcy, he still owed over $450,000 in back taxes.