Being Broke at a Higher Level

Johnny Depp is in a dispute with his financial managers, alleging they caused him to be $40 million in debt and owe the IRS $6 million. In a countersuit, his managers cite his spending $75 million for 14 residences, a 45 acre French Village and a collection if islands in the Bahamas. They also allege he spent $18 million to buy and renovate a 150 foot yacht, and that his lavish lifestyle costs $2 million a month.

We can all look at someone like Depp and say that we would NEVER let ourselves get in a predicament like that. But we do all the time. If one has a lack of financial discipline, it doesn’t really matter what his income level is, he can still get himself in trouble.

The personal finance site, Nerdwallet, reports that those Americans who overspend on their credit cards and unnecessary purchases are more likely to be the higher earners.

A study of 2000 adults by Nerdwallet found 65% of households with over $100,000 incomes overspend on credit cards while just 52% of under $50,000 incomes do. The number is 60% for all incomes.

Only 10% of those surveyed go into the red because their income is too low! While income inequality certainly exists, most people are quite capable of doing what’s in their own best interest.

Now, 49% of the survey takers admitted that they do emotional spending. Most of those are the younger people, the millennials, at 67%, while only 29% of those over 65 spend emotionally.

Anyway, I guess it’s just in the nature of humans that some of us are good with money, while others of us continue to struggle. And it doesn’t really matter if we make $30,000 or $30,000,000 a year, it’s how we handle what we have. We can be broke wherever we are, at a low level, or, like Johnny Depp, at a much higher level.