Hello All,
We’ve covered this before, but its worth repeating. One of the core principles of building wealth is to be sure your expenses don’t exceed your income. This rule holds equally true regardless of your place in society. As an example, I wanted to include this video of Pamela Anderson.
Miss Anderson is well known for her role in the Baywatch TV series as well as some of her other more controversial work in films such as “Barbed Wire” as well as for her issue advocacy for with People for the Ethical Treatment of Animals.
More recently however, California State public records indicate she owes back taxes to the tune of $500,000. While its difficult to speculate as to what the ultimate cause of her fiscal woes is, celebrity blog reports indicate that she has recently decided to refurbish both a home in Canada as well as a house in Malibu. In particular, the home in Canada appears to be part of an extensive development with over 9 cabins and a store front. Thus, what is likely occurring is that Miss Anderson’s expenses have outstripped her ability to pay for them, thus resulting in the back tax bill.
The outcome of this remains to be seen. Frankly, a tax bill of %500,000 is quite a lot of money and it may be difficult for Anderson to turn her situation around without incurring further debt. However, what’s instructive about this situation is that is it shows that even if you are a famous celebrity that does not excuse you from the basic fiscal reality that wealth accumulation only occurs when your income exceeds your expenses.
For those of you who want to oggle at Pamela’s jiggly bits, here is a borderline exploitative clip covering the story:
Best,
James
