Is Kate Gosselin Hitting on Hard Times?

Now that her Dancing with the Stars turn has ended and the media frenzy surrounding her divorce is finally waning, is Kate Gosselin going broke? The love-her-or-hate-her mother of eight has made millions over the past six years from her reality shows, paid appearances and endorsement deals. But Popeater is reporting that Gosselin, 35, has been frivolous with her money -- and is now facing the consequences.

"Kate lives like she is a movie star," says an anonymous friend. "She flies first class and stays at the most expensive hotels and spends money on herself like it's going out of fashion. Remember, this is a woman who once spent $7,000 on a haircut!"

According to the source, Gosselin was counting on her star power to keep herself in the green. Unfortunately, she's no longer the in-demand spokesperson she was during her Jon and Kate Plus Eight days.

"She thought she would earn millions by advertising baby carriages, food and cloths, but no one wanted her," the source explains. "The poor thing even thought she would get a deal with Cover Girl after being on Dancing with the Stars."

If Kate is broke, it's a little ironic, considering that she's such a notorious penny-pincher. Just two years ago, she was bragging to the press about her Sam's Club membership and coupon-clipping skills. In an infamous moment during the pre-divorce season of Jon and Kate, Gosselin went ballistic on her husband after he paid full price for a new shower head.

Although Kate may be spending a ton of money on herself, another rumor going around suggests that she's still scrimping when it comes to the kids. Us Weekly reports that Gosselin gets furious when her kids don't finish their school lunches. To discourage them from wasting food, she allegedly makes them pack their half-eaten sandwiches over and over again, so that they're asked to eat the same sandwich for up to a week. And the icky sandwiches reportedly make them a target for other kids' teasing (as if they weren't getting enough of that already).

Now that Sarah Palin is challenging Kate for the rank of TLC's top star, it's time for the frazzled mama to get her act together. We may have to give her the same advice we've been throwing at her ex-husband for the past year-and-a-half: it's time to stop coasting on fame and look into getting a real job.

Do you think Kate Gosselin has been leading too luxurious a life? Chime in below!

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