Burt Reynolds Enters Foreclosure; Poor Economy Not Playing Favorites

Some stars who have made millions and thought they would never have to worry about money again are coming to the realization that good times can, and will, come to an end. For most of us average folks, trying to stay financially stable can be a constant struggle, especially in a bad economy or downright recession.

Burt Reynolds is yet another Hollywood celebrity who is facing financial ruin after a long run of making millions in the movies. His star peaked in the 1970s and early 80s with the "Smoky and the Bandit" films and movies like "Cannonball Run."

Now Reynolds is faced with the foreclosure of his waterfront Florida estate. According to TheWrap, Merrill Lynch Credit Corp. says the actor hasn't made a payment on the home in almost a year. The lawsuit by the company states that Reynolds owes nearly $1.2 million.

Reynolds tried to sell the home in 2009, but because of the housing market downfall was unable to get the $8.9 million he had asked. The house and property are currently worth $2.4 million.

Fortunately for Reynolds, he has another home in Little Rock, Arkansas, and won't be forced to move in with family or crash on somebody's couch, like many Americans have had to do. It does look like he will be forced to file bankruptcy again, though. He initially filed shortly after his divorce from ex-wife Loni Anderson back in 1996.

Celebrities who get used to having so much money at a young age don't learn to spend their money wisely and have a difficult time seeing the possible negative consequences far into their financial future. Do they really need a 12,000 square foot mansion? No, but they might feel that in order to live up to their big name status they need a home that will show off how far they've come from humble beginnings.

Michael Jackson was another famed spendaholic. At the time of his death, the pop star was renting a $100,000 per month mansion while facing foreclosure on his Neverland Ranch. It was said that he was $23 million behind on his $25 million loan. In many ways Jackson's home did represent his unwillingness to grow up and forever be a child. While not forgetting about the child in you as an adult has plenty of advantages, throwing money around so irresponsibly is not one of them.

The recession might be a reality check for those celebrities who haven't learned to manage their money. Though it's doubtful they will end up on the streets, they might get a little taste of what most of us have to do: learn to budget.