How to waste money like a movie star

Celebrity gossip is not a regular feature of this blog, but an US Magazine story about Nicolas Cage's spendthrift ways was too juicy to pass up.

The actor, whose films have grossed more than $3.9 billion worldwide, is in financial ruin. He owes $6 million in back taxes, is suing his former money manager for $20 million, his mansions are in foreclosure and many of his belongings are on the auction block (anyone want to buy a shrunken head?).

What lessons can be gleaned from Cage's free-spending ways? How about:

• Live within your means. Even multimillionaires need to budget and set spending limits.
• Choose a financial adviser carefully. Cage says his led him down a path of "financial ruin."
  
• Bidding wars often end in Pyrrhic victories. Sure, you won a $276,000 dinosaur skull, now where do you store it?
• Don't buy more car than you can afford. Or for that matter more cars -- who really needs 50? At least he bought that $495,000 Lamborghini used.
• The Tax Man will get you in the end. The more you make, the bigger the target.

• The world's richest tax cheats
• 10 celebrities' big money mistakes
• Back to the basics: How to budget