Celebrities who went bankrupt

Stretch limos. Malibu mansions with indoor/outdoor pools and polished marble everywhere. Exclusive vacations on private islands. The life of a star isn't too shabby.

However, it's fairly common that we hear of celebrities going broke. Here are just a few examples.

Richard H. Madow, DDS, and David M. Madow, DDS.

MC Hammer earned $35 million on one album alone, but purchasing a $30 million mansion and having a 20-man staff to the tune of $500,000 per month didn't help things. Hammer Time didn't last long.

Willie Nelson's marijuana use is on the record, but this legendary country singer invested in a shady tax shelter that caused a $16 million debt to the IRS. You don't want to mess with those boys.

Kim Basinger paid $20 million to purchase a small town in Georgia. Don't do that.

Mark Twain saw his fortune float down the river when he invested in a series of get-rich-quick schemes.

Wayne Newton was once the highest-paid performer on the Las Vegas strip and featured in a Timothy Dalton-era James Bond film, but Mr. Newton couldn't figure out what to do with all of his money, investing in six questionable companies he knew nothing about.

Basic mistakes

Of course, there are many more examples. But it seems like just about every celebrity bankruptcy falls into either one or both of these mistakes:

• Don't spend more than you have.
• Don't invest in what you don't understand.

These are obvious yet extremely valuable lessons.

Whether you earn $30,000 or $30 million, it is essential to live within your means. This will create more happiness than any material possessions or extravagant parties.

And when it comes to investing, in the dental world, your best bet is just about always to invest in your practice and yourself.

If you want to invest right now and get the highest possible return, there is no doubt that instead of putting your hard-earned money in stocks, gold, some crazy "ground level" company, or your brother-in-law's restaurant idea, it should go into your practice. That could be continuing education (bring the team!), equipment, marketing, a new treatment room, investing in team development, or many other things.

As we often say around here, "Dance with who brung ya!" For most of us, that's our dental practices.

In 1989, Richard H. Madow, DDS, and David M. Madow, DDS, founded The Madow Brothers with the goal of helping their fellow dentists achieve success and happiness in their practices. For more information about their e-letters, audio series, New Patient Mail marketing program, Dental Powerhouse group, their live presentations (including "How To Love Dentistry, Have Fun, and Prosper," "The Ultimate Dental Boot Camp," and especially "TBSE"), and more, check them out at www.madow.com.

Disclaimer: The comments in this article are not meant to be taken as financial advice. It is recommended that you always consult with your financial planner before making any significant changes in your financial situation.

The comments and observations expressed herein do not necessarily reflect the opinions of DrBicuspid.com, nor should they be construed as an endorsement or admonishment of any particular idea, vendor, or organization.