Kate Gosselin: Living Like Diva, Facing Fiscal Ruin!

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Kate Gosselin is spending money like it's going out of style.

The only problem? With eight children and the kind of lifestyle only the richest can afford, her reduced income can't match her diva-like spending habits.

This could explain the kids eating moldy sandwiches lately.

THE WELL IS DRYING: Kate Gosselin's still spending, though.

Kate the child abuser made a small fortune from her TLC show and Dancing With the Stars, but insiders say much, if not most of it has evaporated.

"Kate lives like she is a movie star," a friend tells PopEater. "She flies first class, stays at expensive hotels. She once spent $7,000 on a haircut!"

While Kate keeps living the diva life, all the lucrative deals she's tried to put together to earn the cash to keep it up seem to have fallen through.

"Kate was hoping to get paid to endorse a bunch of products," the friend reports. "She thought she would earn millions advertising baby carriages."

"The poor thing even thought she would get a deal with Cover Girl after being on Dancing With The Stars, instead they went with Beyonce."

LOL, Kate. Delusional much?

There's no end in sight, either. With eight mouths to feed, not to mention the new expense of having a home tutor for two of the sextuplets - after Collin and Alexis Gosselin's expulsion from private school - the bills keep piling up.

"Kate is so worried about her finances that she's even thinking about getting a real job," an insider says. Hey, it's not like she can count on Jon.

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Gee, who couldn't see this happening? I think she had all those kids with $$$ in mind. Unfortunately, Jon backed out and now the kids are "ruining" it for her. God Bless those children.