You’d think that with all the years spent as CJ Parker sprinting on the beach, tantalizing men and women alike, and for many being the single reason they tuned into Baywatch every night, Pamela Anderson would be more than financially secure. With the distinction of being the longest running Playmate , four high profile marriages, hordes of movies, TV shows, reality shows, fashion events and even trying her hand at books, filthy rich is how most people would describe Pamela Anderson’s financial status. So when news of Pamela Anderson’s alleged debts broke out in September 2009, it was a real shocker for her fans and followers.

Moral of the story- you can have all the money in the world, but if you’re not spending it wisely, and think you need not be bothered with planning and budgeting, you may just end up meeting the same alleged fate as Pamela Anderson.

If celebs with more money than they can handle can be susceptible to debts, then living from one pay check to the next, most of us can already feel the pressure of mounting debts, credit card bills, mortgage payments- all eating into your savings, making your future look really bleak! Pamela Anderson allegedly owes more than a million dollars in debt to the state as taxes, and to at least 5 contractors and builders for remodeling her home.

While your debts and expenditures may not be as extravagant, it does not mean that you cannot fall prey to a financial mess, and in the worst case, even bankruptcy. Spending wisely, prudently, and planning for the future are your best bets for avoiding an Anderson debt like situation, even if you’re currently making enough money, or feel that your debts are well under control.

• When it comes to your finances, you never know what may sneak up on you when you least expect it and wreak havoc on all your financial planning. Inflation, medical emergencies, recession, lay-offs, you can’t always plan for all these, so saving for a rainy day is the next best thing to do. Always have a back-up in the form of savings and investments which you can dig into, in times of emergencies rather than going for loans, mortgages etc, which only entrap you in the cycle of interest payments, loan recovery, and in turn mounting debts.

• Having a credit card gives you the luxury of not having to carry cash with you everywhere you go, but being late on your payments can really just back-fire the whole thing on you. However busy you may be, avoid being late on your credit card payments. For most people credit cards are the main culprits- interests and penalties on your late payments adding up to your expenditure, making it much higher than what you bargained for.

• Avoid using your credit card for smaller purchases, or when you have cash with you. Though using your card may be the easier and more convenient option, most people end up spending more than they intend to, just because they are not paying cash. Also using your credit card to pay off your loans is the last thing you should do with your card. Your loans are not actually paid off, but only getting postponed, accumulating and adding on to your credit card bills, making the actual payments almost unmanageable in one go.

• Though it may sound very obvious, but keep your expenses in check. With a ready income, and steady cash flowing in from all possible sources, Pamela Anderson goes into debt for extravagantly remodeling her house. If you want to indulge yourself in something extravagant make sure that your financial accounts can accommodate it.