Tax Day has come and gone, but for certain members of Hollywood’s elite, April 15 was just another Thursday. Too bad debt collectors and the IRS don’t see it that way. While these entertainers earn many times the average household income, they are learning now that a lack of financial knowledge can cost them — big time.

1. Nicolas Cage. This Oscar winner isn’t winning any awards for money management: In January, the IRS came knocking for $14 million in back taxes, and the Bel-Air mansion he tried to sell for $35 million was just repossessed by the bank. But all that didn’t stop him from buying a pyramid in New Orleans last week.
2. Pamela Anderson. Nothing can save this Baywatch star from the California Franchise Tax Board’s tax lien to collect $493,000 in unpaid state taxes. And that’s separate from the $1.7 million she reportedly owes the IRS.
3. Nas. Last October, the rapper from Queens was hit with a tax lien of $2.5 million for unpaid taxes from 2006-7, as well as court-ordered alimony payments to ex-wife Kelis to the tune of $55,000 per month.
4. Lindsay Lohan. The former child star hasn’t had a blockbuster hit in years, but she’s still spending like an A-lister. A snitch reported yesterday that Lohan has charged up $600,000 in credit card debt, and was nearly evicted from her apartment earlier this month for falling behind on her rent.
5. Sinbad. This funnyman isn’t laughing now that the IRS has filed a civil suit against him for failing to pay taxes from 1998 to 2006. The lawsuit alleges he owes $8.2 million to the federal government, plus interest, penalties, and legal fees. And it gets worse: The U.S. Attorney General’s office demanded in February that he sell his $3 million home to make up part of the difference.

Want more? Check out our 8 Worst Celebrity Financial Mistakes feature.

This year, vampire patriarch Carlisle Cullen from the Twilight book series tops the list with an estimated net worth of $34.5 billion. It helps that he’s had 370 years to build up his bank account, but Forbes chalks up Dr. Cullen’s theoretical success to very, very, very long-term investments.

Even if you aren’t immortal, you can borrow some of his wealth-building strategies to watch your own money grow, like these tips:

• Live frugally. Despite an arguable need for one, the family does not own a private jet, preferring instead to fly commercial. And while they have collected several expensive sports cars, the bulk of their flashiest gas-guzzling vehicles spend most of their time in the garage while the family galavants in a much less conspicuous Volvo.
• Avoid the trap of being house rich and cash poor. The Cullen family home is valued at $3 million — less than .009% of the family’s holdings. While it would be difficult for most people to find suitable housing on that kind of budget, buying less house than you can afford is a great way to free up money for other uses.
• Plan ahead. Not all families are lucky enough to have a daughter who can see into the future. But developing a solid investment plan can help your own money accumulate faster than if you stuff it in a mattress. Remember: Few people get rich by accident.
• Look long term. The Cullens use their unending lifespan to let compound interest on their investments work its magic. However, even if you have only 30 years until retirement, that’s enough time in the stock market to see some serious gains.

Salary research organization PayScale surveyed alumni of the top 64 universities with men’s basketball teams participating in March Madness this year. A few notes about the data: Only graduates with 5 to 15 years of work experience were selected to give a portrait of mid-career salaries; unemployed and self-employed alumni were excluded. Median figures were used instead of averages (a wise decision, since many of the top sports heroes go on to make millions in the pros, which would skew the numbers).

Perhaps not surprisingly, Duke takes home the championship by a wide margin:

So how does your bracket stack up? See the full PayScale report here.

(via Economix)

Despite success across the pond (he ranks third in Michelin stars) his U.S. company, Gordon Ramsay New York, was forced to hand over his signature New York restaurant last year to settle his financial troubles. And now the New York State Department of Taxation and Finance (DTF) says Ramsay is one of the city’s top 250 “delinquent taxpayers.”

The Daily Dish says DTF is aggressively addressing the tax gap.  The chef owes a reported $250,000 to the state.  But a representative for Ramsay says, “There is an amount still outstanding to the New York State regarding sales tax. We are negotiating through our New York advisors to discharge this debt.”

Wouldn’t it be nice to be able to fall behind on payments, to the taxman or otherwise, and simply have our debts discharged? Fortunately that’s not how our tax system works and DTF seems intent on collecting their due.

Take a lesson from this master chef: Pay your taxes in full and on time (or early). It’ll save you a lot of hassle in the long run.

Walker was well-known as a gambler on the court. A prolific outside shooter, he was often criticized for attempting 3-point shots at the expense of higher percentage inside shots. (An average NBA three pointer goes in only 36.7% of the time compared to 48.5% for a 2 point shot.) This criticism was largely misplaced: Walker averaged 0.98 points per 3 pointer attempted versus 0.89 points per 2 pointer attempted.

His gambling off the court, on the other hand, was far less publicized at the time — and far more personally damaging. When you’re playing “$15,000 hands with Michael Jordan during an all-night gambling session where estimates of money lost and won totaled several hundred thousand dollars,” you might have a problem. A salary of $49 million — a conservative estimate of what he took home after taxes and agent fees — is a lot, but that’s not Jordan money.

And as we’ve talked about before, the hidden costs of being a celebrity and “taking care” of friends and family adds up quickly:

Off the court, there were the cars, the jewelry, the houses, the suits, the gambling. He liked to move in an outsized entourage; his mother estimates that, during his playing days, he was supporting 70 friends and family members in one way or another. And speaking of his mother, he built her a mansion in the Chicago suburbs, complete with an indoor pool, 10 bathrooms, and a full-size basketball court.

[…]

Living at the Bishops Forest condominium complex in Waltham during the Celtics season, Walker turned the pavement surrounding his home into a virtual luxury car lot – two Bentleys, two Mercedes, a Range Rover, a Cadillac Escalade, a bright red Hummer. Often, the vehicles were tricked out with custom paint jobs, rims, and sound systems at considerable added expense. He also collected top-line watches – Rolexes and diamond-encrusted Cartiers.

The lessons here are simple and apply to everyone, not just athletes making $9 million a year: Make sure you’re saving a good chunk of your salary, limit your risky investments/gambles, and create and track a budget so you can stay on top of your cash flow.

The clothing company H&M has made a name for itself providing high-fashion clothing at prices that most people can afford. (BTW – I am not paid by H&M; this is what my wife has told me.)

On occasion, H&M enlists the services of an otherwise exclusive designer, to produce a line specifically for the store. The latest such luminary is Jimmy Choo, the shoe & handbag designer of Sex-and-the-City notoriety. The line will be released in H&M stores in November.

The most basic black pump in Choo’s high-end line retails for around $500, with newer and flashier items fetching well over $1,000. At H&M, the entry-level price point will be $99, with the most expensive shoe topping out at $299. It’s not exactly Payless, but considering the demand for the designer, these are bargain prices.

Indeed, H&M is anticipating such high demand for this product that they’ve created a section on their website: “How to Shop.” The first 160 people in line at H&M stores will receive bracelets limiting their time to shop the Choo collection.

Furthermore, of the 150+ H&M locations in the US, only 10 will carry the line. Five of those are in New York City.

What gives? Why doesn’t H&M want everyone to experience the newly-affordable luxury that Jimmy Choo has created?

Not exactly. By limiting the supply and the amount that can be purchased, H&M is accomplishing two things: it’s ensuring that the price won’t fall, and it’s ensuring that Jimmy Choo maintains its mystique.

Consider this – what if every H&M store in the United States carried unlimited amounts of this line? Sure, they might be busy on the first day, but after a time the consumer demand would be satisfied. Inventories would build, and H&M would have to put the shoes on sale. So, not only would Jimmy Choo shoes be on the feet of every girl in the US, but they’d be selling at a discount price. The horror!

Instead of such a nightmare scenario, H&M and Jimmy Choo have played it smart. They’ve made a limited quantity, so the demand for these shoes will be far from satisfied, and there won’t be any pressure to discount the price. Additionally, since only a relatively lucky few will be able to purchase these shoes, Jimmy Choo can retain the exclusive aura that surrounds its name.

Now, while you’re standing in line on November the 14^th, you can explain to your fellow shoppers why the line has formed in the first place.

What’s your take on H&M & their supply of Choo’s shoes? Let’s hear about it in the comments!

We have received complaints of noise disturbances and guests wandering the hallway and Observation Deck. This is a direct violation of your Lease Agreement…Additionally, we were notified that you had over 10 cars parked in guest parking on the evening of September 25th. This is a violation of your lease … which states, “You may have no more than two overnight guests at a time unless we provide specific approval.”

He also owes his Los Angeles luxury apartment landlord almost $10,000 in unpaid rent and late fees.  Soulja maturely responded by posting a video on Twitter showcasing his jewelry and designer bag collection and the piles of cash he keeps in an unprotected shoe box in his apartment.

Flub #1: Unpaid rent and rental agreement violations.  A lot of young adults rent property either while in college or when they start their first job.  Rental agreements can come in many different forms from many different sources.  You might have a landlord, or maybe you’re subletting from a friend or renting through a lease in a big corporate run apartment building.  Whatever the case, make sure you read your rental agreement carefully.  Any violation of property rules, tenant guidelines, or deadlines can lead to expensive fees or even eviction.  There are certainly benefits to renting, especially when you’re young, but make sure you pay your rent on time and avoid violating your contract (cranking your music isn’t always a good idea).

Flub #2: Keeping cash and valuable items out in the open.  Protecting and insuring your valuables is a basic and important step especially when living on your own.  Keeping large amounts of cash is never a good idea.  Put your money in a savings account and important documents like birth certificates and savings bonds in a safe or safe deposit box.  Throwing around your valuables often leads to theft or misplacing things.

Take a few lessons from Soulja Boy:  Don’t crank your music. Pay your rent on time.  And keep your valuables safe – in a safe.

But as his homes sit unsold, the IRS filed another tax lien on the actor whose government tab now totals $6,617,550.84.  Failing to pay your taxes for multiple years is never a good idea.  This kind of balance due makes Pam Anderson’s $1.1 million debt look a little less daunting.

Not to mention from 2002-04 Cage improperly deducted things like limo rides, meals and gifts from his tax return to the tune of $3.3 million.

There are a few financial lessons we can take from this kind of celebrity mishap:

• Always pay your taxes.
• Have someone else look over your return to make sure it has been completed properly.
• Just because you’re rich and famous doesn’t mean you can get away with poor money management.

I’m not sure searching for actual treasure will help Mr. Cage out, but perhaps he should seek out a financial advisor to help get him back on track.

According to People magazine, Los Angeles County records show she owes more than $1.1 million to creditors:

According to the documents, five different construction companies have filed liens against her home, the largest being $674,043 for “labor and materials … to remodel main house, construct swimming pool, construct foundations for guest house.”

She also owes $252,360.39 in back state taxes and penalties for 2007.

With that, she joins the illustrious ranks of celebrities who have displayed disastrous financial-management skills. Just because you make a lot of it doesn’t mean you’re good with money.

Pam should remember the immortal words of the Notorious B.I.G.: “Mo’ money, mo’ problems.”

Today’s edition of When Celebrities Mismanage Their Finances – or, excuse me, When “Celebrities” Mismanage Their Finances – centers on Nadya “Octomom” Suleman.

Suleman – mother of 14 children, including the world’s only set of octuplets – recently signed a contract for her kids to appear on a reality TV show. Each child will receive $250 per day of shooting and “15 percent of the kids’ earnings will be placed in a trust account,” according to E! News.

Now while $250 per child per day may seem like quite a bit, it’s actually not very much. Collectively they’ll earn nearly $250,000. The show will only shoot for 71 days over three years, meaning that each child will earn $17,750 total. And 15% of that is just $2,662.50, the amount to be placed in each child’s trust, accessible once they turn 18 (in accordance with CA law).

In other words, the kids aren’t making very much money from this deal at all. They’ll be paraded about on a reality TV show and, assuming interest on the trust account is less than 8%, likely end up with less than ten grand.

One hopes that the $211,225 Suleman controls will be spent wisely. Feeding, clothing, and housing 14 growing kids can’t be cheap.