The entertainment industry was all abuzz about how Mischa Barton, a former well-known actress (because has-been is too cruel), was going to lose her 8-million-dollar house because she is behind $100,000 on her mortgage. The estate has 8 bedrooms, 11 bathrooms and great ocean views of Catalina Island. It only goes to show no matter how much you earn, it only matters what you get to keep. People also forget that salaries don't always go up, although I think people realize it more now. If you're in a fickle industry like the arts, your income can be notoriously unstable and any high income that you get can be very temporary. It's a lesson too few people really learn. They want to live like the Rich and Fabulous without acknowledging that you can lose it all.
Getting rich in a short time can be very illusory situation. A lot of money can be quickly spent if you're not prudent. Preserving money and making it work for you over the long term is hard. It's hard to keep your head together when you get a windfall, but that's why it's important to hold fast to your normal budget and not make any financial decisions until at least six months later. You can get a better picture of your financial situation. Don't forget that a temporary windfall also means that you have to pay more taxes. What you get to keep is what matters.
In addition, I have to wonder why she bought such a big house. How many kids does she have? The entertainment reports don't even mention if she is married with kids. If she lives in that big house all by herself, she would have to hire staff to maintain it -- that's another expense. She has to keep working as an actress in order to keep her estate. I haven't really seen her in anything lately. It's like Hollywood actors have an expiration date. Wealth can have an expiration date also.
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