WA$ Filthy Rich – Nicholas Cage

Actor Nicholas Cage Gets Caged in by His Money Troubles

By: Jennifer L. Lopez, Debt.com Financial Fitness Trainer

Nicolas Cage is a well-known and respected Hollywood actor.  Born into the famous Coppola family to a literature professor and dancer/choreographer, it is no wonder that creativity runs in his blood.

Since starting his career in the early 1980’s, Nicolas has enjoyed a fairly steady record of success, including the increase in pay that comes with it.

However, despite the longevity of his career and his ability to command up to $20 million per movie, he has been experiencing major money issues and making headlines for less-than-desirable reasons.

News broke in late 2009 of Nicolas’s financial troubles after he filed a $20 million dollar lawsuit against his former business manager Samuel J. Levin.  The suit was filed because Nicolas claimed that his debt issues, including $6 million dollars in unpaid taxes, were directly due to irresponsible management of the actor’s funds by Levin since his hire in 2001.

In addition, Nicolas blamed his financial ruin on risky real estate investments set up by Levin. The manager countersued, claiming that it was that the actor who ignored wise counsel, and set off on a spending binge, which included 15 homes, 4 yachts, a jet, and even a tropical island.

By recent reports, the estimated amount of taxes that Nicolas Cage owed was up to $14 million.  Nicolas owned 4 homes, including a Bel Air mansion, two New Orleans mansions, and a Las Vegas mansion with a 16-car garage.

Slowly Nicolas got behind on his obligations, and one by one the houses were foreclosed upon and auctioned off. In addition to the foreclosures, the actor has also been bombarded with a number of multi-million dollar fraud lawsuits by a real estate company, the mother of one of Nicolas’s children, and a bank.

Along with the damage to his financial status, Nicolas received a hit to his reputation in April 2011 when he was arrested by New Orleans police for being drunk and getting into a domestic dispute with his wife. When the police told him to go home, Nicolas allegedly challenged the cops to arrest him, and they took him up on the offer.

Nicolas Cage landed in prison with an $11,000 bond, and had to be rescued by A&E reality TV stars Duane “Dog” Chapman, a bounty hunter, and Beth Chapman, a bail bondsman.

There are a handful of intriguing nuggets to dig into within this story, but let’s focus on some of the things that Nicolas Cage could have done to prevent the debt firestorm he is now facing.

There have been a number of reports about Cage’s overspending, whether legitimate or not, and despite his financial success, it is always possible to reach the end of your assets.  Less luxury homes, less expensive vehicles, and less lavish everyday living could have meant more liquid assets in his bank accounts.

Though Cage has used his funds in honorable ways, like donating $1 million to Hurricane Katrina relief in 2005, and $2 million to Amnesty International in 2006 to help child soldiers, it can be difficult to spread money in so many directions without experiencing some eventual setbacks.

If it is true that his business manager contributed to his fiscal demise, it would have been helpful for the actor to take a more active role in his affairs by placing a little less trust in his advisor’s dealings.

Though celebrities and upper-level business people often have to rely on others to assist them in managing their financial situation, it is vital that opportunity is never allowed for long-term damage to be done to their record due to lack of oversight.

So what’s a man like Nicolas Cage to do now?  How can he get out of debt, and what can we learn from this situation?

• Keep your nose to the grindstone—Nicolas Cage still has a lot of earning potential, so he should take advantage of that to remedy his current financial debts and prevent future ones.  According to recent reports, he is currently working, and has a number of films scheduled to be released this year and in the next few years.

• Less is more—Nicolas Cage will have to learn the hard lesson that a person does not need more houses than you can count on two hands—or  vehicles or motorcycles, for that matter.  Though acquisition may provide temporary gratification, the reward of the catch may not be worth the risk.

• Avoid temptation—Nicolas Cage seems to enjoy fine homes, fast cars, and items of a collectible nature, such as comic books, rare archaeology finds, and unusual pets.  If these are his vices, it is probably best to stay away from shows or dealers that will make it all too easy for him to procure more.

• Use your resources—Between movies being released now through 2013, Nicolas should have grossed over $33 million in pay.  He needs to direct that money to paying down debt.

• Pick your projects carefully—Nicolas Cage’s career, and in turn, his profits have been taking a bit of a beating in recent years.  In the 2000’s, it was not uncommon for him to command $20 million per film.  His most recent film has him making only $1 million after a string of less than stellar family films. In order to reach his previous status, he should attempt to pick his projects based on quality, rather than quantity.  The same principle could be applied to his choice of investments in order to avoid future risk to his financial portfolio.

• Steer clear of trouble—Financial problems can happen to anyone, and are not always due to reckless spending.  Regardless of the reason, money issues can reflect poorly on the person who is having them, whether the assessment is accurate or not.  In light of the problems, it is probably a good idea for Nicolas Cage to stay out of trouble with the law, and to avoid potential scenarios that will draw negative media attention.

There is still hope for Nicolas Cage to break out of the cage that his financial problems have created for him.  With the prospect of new projects, and hopefully a new mindset from the lessons that he has learned, we cannot help but root for him to reemerge as the “national treasure” that he has been for decades.