Are you familiar with TV reality personality Spencer Pratt? If you are, you might recognize him from one of the many television shows that he's been on. For the most part, it involves various reality television shows. One of the more notable shows is “The Hills,” one that he has starred on with his wife for quite some time. At one point in time, the two of them were said to have been worth upwards of $10 million. However, their net worth is now down to only $300,000. It can be difficult to understand how someone can go from a net worth of $10 million to only $300,000, especially in such a relatively short amount of time. After all, Pratt has been on various reality television shows since roughly 2005. It's hard to imagine that in less than 20 years, he could have gone from such a high net worth to something that is far lower than most reality television stars have after only their first season or two of performance. The question is, how did this happen? As it turns out, it's not just one thing, but a lot of little things that have happened over time.
Blowing Their Fortune
How exactly does one blow a net worth of $10 million? It certainly doesn't happen overnight, nor does it happen as the direct result of only one bad financial decision. This particular couple made several. For starters, they ended up believing the hype that went around back in 2012 when people started claiming that an asteroid was going to hit the earth and the whole world was going to end. As a result, they set out on a course to intentionally spend all of the money that they had before the supposed date where everything would disappear in a massive fireball. The thing is, the world obviously didn't end, but their financial security certainly did. In addition to deliberately spending as much money as they possibly could before that date, there were other problems as well. As it turns out, neither one of them is very good at managing money, nor are they very good at figuring out that fame is almost always a fleeting thing, and no one is guaranteed a high paying job after the one they're currently doing ends.
One Poor Decision After Another
The truth is, the couple are well known for making one bad decision after another when it comes to their finances. For example, Spencer himself once spent roughly $200,000 on clothing because he wanted to look as much like Brad Pitt as possible, hoping to end up in all of the top fashion magazines as an A-list celebrity. His wife wasn't any better. She spent roughly $200,000 in a single day on plastic surgery procedures and continued to spend thousands upon thousands of dollars on things like makeup, shoes and handbags. Apparently, she has an affinity for handbags made by Birkin, all of them costing at least $20,000 a piece. Obviously, the couple were spending money faster than they were making it, with little thought of putting anything back for a rainy day. Pratt himself developed an interest in crystals, believing that if he bought enough of them that they would give off so much positive energy that his career would soar into the stratosphere. As such, he spent roughly $5,000 on crystals, only to realize that they weren't going to change the course of his career after all.
Fame Comes With a Price
As the two of them burned through their finances, they had the idea that if they spent more money in order to buy a larger house or a better wardrobe, more jobs would come and they would propel themselves to the top of the A-list celebrity line for Hollywood. Clearly, that's something that did not happen. As a matter of fact, the more that they tried to propel themselves into ever-increasing levels of success, the more they found themselves falling away from the things that they wanted. As opposed to getting more jobs, they were actually getting fewer and fewer callbacks. Their finances were drying up and by all accounts, it seems that their fame had come and gone. As opposed to going into survival mode and saving the money that they had until things leveled out, they only doubled down on everything and spent even more.
By the time it was all said and done, they had spent the majority of the $10 million they had earned. Currently, they only have about $300,000 left in their net worth. By the same token, neither one of them are getting as many jobs as they used to so they're not able to rebuild that net worth as quickly as they had hoped. The end result is that they are left with very little money compared to what they want and they are seemingly unable to dig themselves out from under the mess that they have created, at least in the immediate future. Who knows what might be in store for them in the long-term? Hollywood can be a very fickle place. Their popularity could start picking up again tomorrow and they could potentially land some lucrative deals that would help them get at least some of their net worth back. However, that hasn't happened yet and it remains to be seen whether or not it ever will. By the same token, it won't matter if they do regain a significant portion of their net worth if they haven't learned anything from this experience about their spending habits. If they're going to continue to spend like they have unlimited resources, they're probably never going to have the money that they would like to have. It's almost impossible to spend money without limitations and still have money in the bank unless you are born independently wealthy, in the extreme. For everyone else on Earth, it involves a lot of hard work and making hard choices when it comes to deciding what to spend money on and how to save money. That's true of everyone, even people in Hollywood.
Written by Allen Lee
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