It seems like even the wealthiest of Hollywood A-Listers eventually reach the bottom of their wallets. Johnny Depp, of Pirates of the Carribean fame, has run into some serious financial problems. He’s now suing his former money managers, The Management Group, for mishandling his assets. However, the countersuit against him claims that his money woes can only be blamed on his overly luxurious lifestyle.
Depp claims that the group owes him nearly $6 million of tax penalties, and his Los Angeles home going into foreclosure.
In response, the group claims that Depp is fully responsible for his own financial troubles. “TMG repeatedly warned Depp to reduce his spending and sell unnecessary assets,” their suit claimed, “But ultimately, the decision whether and how to spend his money was a decision for Depp to make.”
Johnny Depp’s Riches
The Management Group’s countersuit made their point through a list of luxuries Depp has spent for, in the 17 years they’ve represented him. Depp has spent $75 million for 14 residences, including one in France and one in the Bahamas. He’s purchased an $18 million yacht. As for the monthly costs of his lifestyle, he spends about $300,000 for a personal staff of forty; $150,000 for 24/7 security; $200,000 for the use of private planes.
This doesn’t even count the millions he has spent for 200 pieces of art from around the world, a collection of 70 guitars, and several pieces of world-class jewelry. Johnny Depp also spent $3 million to fire the ashes of author Hunter Thompson from a specially made cannon.
TMG maintains that, despite repeated warnings to both him, his sister Christi Dembrowski, and his lawyer Jake Bloom, he continued to spend extravagantly. Doing so at a pace his income could not catch up with doomed his bank accounts.
The Dangers Of Overspending
According to Market Watch, Depp’s situation is sadly representative of a common American habit. When people earn more, they tend to spend more. The thrill of big paychecks – such as those Depp must have received for his work on Alice in Wonderland or Dark Shadows – creates a financial pitfall, easy to fall into.
“Whether you’re an entertainer, athlete, or a salesman that had a great year, you cannot spend money at the pace of your very best income years,” says Greg McBride of BankRate.com. He warns that you can’t spend as if your best year is the new norm.
People are also prone to emotional spending; half of Americans have shared spending more than they could reasonably afford, due to stress, excitement, or sadness. And with easy credit card availability, more and more are becoming susceptible.
Considering that Johnny Depp hasn’t had the best of times recently – going through his divorce with Amber Heard – let’s hope he doesn’t dig an even deeper hole for himself.
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