Kerry Katona: I’ve gone from bankrupt to millionaire – and finally started a pension

In our How I Manage My Money series we aim to find out how people in the UK are spending, saving and investing money to meet their costs and achieve their goals. This week, we speak to Kerry Katona, 43, singer, reality TV star and entrepreneur. She tells The i Paper about growing up in poverty, going from being a multimillionaire to bankrupt and back again, earning hundreds of thousands from reality TV, and why – after years of renting – she’s now determined to buy a home of her own. What was money like in your household growing up? When you say “household”, I lived in loads of them. I was in refuges, foster homes – we had nothing. My mum was on benefits. We had one of those TVs where you had to put 50p in, and she’d break into it to get the money back out. I used to go shoplifting with her – I’m not proud of it, but that was normal to me. My nana got my clothes from jumble sales. I remember trying to sew “Reebok” into a jumper, so it looked like everyone else’s at school. So no, there was no security at all. But it made me who I am – I’ve always worked, since I was 14, always relied on myself, always thought: what can I do next to earn money? What’s been your most lucrative work over the years? How much did you earn from Celebrity Big Brother? These days, I make a lot from OnlyFans – millions over the years and I’ll carry on as long as I can. But I’ve been earning for nearly 30 years. Reality TV has always paid well. Brand deals too – things like Iceland back in the day. Celebrity Big Brother was one of my biggest – that was about £400,000. I actually used that to pay off my bankruptcy. I’ve done shows like Celebs Go Dating for the money as well – I won’t pretend otherwise. But I also think, what an experience. I’ve only got my time and energy, so I want to enjoy it. At the height of your earnings, how much were you bringing in? Back in the early 2000s, I was earning ridiculous money. Magazine shoots alone could be £100,000. I was a multimillionaire – I had everything: deals, shows, sponsorships. I never wanted for anything. But I trusted the wrong people. My accountant ended up going to prison, and I lost everything. People thought I’d blown it all, but that wasn’t the case. I’ve been a millionaire, bankrupt, millionaire again, bankrupt again – and built it back again. Not many people can say that. You’ve been open about financial struggles – what’s been your biggest money woe or toughest period financially? Bankruptcy was tough. I went bankrupt over an £84,000 tax bill and ended up paying nearly half a million back. I still don’t fully understand how that works. What’s your biggest money regret? My biggest regret is trying to buy people’s love with money because it never works. I’ve been on every side of money – having nothing, having millions – and it doesn’t make you happy. It just gives you better options. What’s the best purchase or investment you’ve ever made? It’s not material. It’s experiences. Taking my kids away and making memories – that’s the best investment. That’s what lasts. I’ve paid for private school for my kids. I don’t even necessarily believe in the system, but I wanted them to have opportunities and a different upbringing to me. Do you budget now, and what are your biggest monthly outgoings? No, I don’t really budget. I’m not much of a spender, though. I pay my bills, rent, school fees, taxes, housekeeper, holidays – everything that needs paying gets paid. I’m in a fortunate position now where I don’t really want for anything. What’s your weakness when it comes to spending? My kids, 100 per cent. I’ve probably spoiled them too much. I don’t really care about designer stuff or things like that – it’s more about making sure they’ve got everything and giving them experiences I never had. Do you have a pension? I’ve only just recently set up a pension – my manager helped me do that. For most of my life, I’ve just lived day to day. I’ve always worked, so I never really thought about long-term saving. But now I am putting money away monthly. You’ve rented for years – is owning a home still the goal? I’ve rented for about 17 years. People say owning is everything, but really, the bank owns it anyway. That said, I’d love a home of my own now – somewhere I can put what I want on the walls, change things without asking. That’s the dream, a proper home with my partner. What does financial security look like to you now, and what are your goals for the next few years? It’s simple – being on top of your bills and a few steps ahead. Waking up in a house full of love, not worrying about money day to day – that’s security to me. My goal now is stability like a home, continuing to earn and making sure my kids never go without. And tell me about Abba-Mia! – what can people expect? Abba-Mia! [a touring musical tribute show to Mamma Mia! The Musical which Kerry will star in] is pure escapism. It’s all the songs everyone knows and loves – proper singalong, get-up-and-dance stuff. It’s for all ages. Touring is hard because I miss my family, but once you’re on stage, there’s nothing like it. It’s just a good laugh and a bit of joy for people.