8 money tips from Johnny Depp’s finances
8 money tips from Johnny Depp’s finances
Well in case you have more of a life than me or just don’t care for celebrity gossip, Johnny Depp is (allegedly) going broke. Last year he finalized a divorce settlement for 7 million dollars, which is pennies for an actor that made $55 million for ONE Pirates of the Caribbean movie right? Well it seems that might not be the case! He also recently filed a $25 million lawsuit against his business managers. He claims his funds were mismanaged. We’d really have no way of knowing how mismanaged they were because we don’t have his spending history. (….or do we?)
Depp’s management group of course doesn’t think they mismanaged his funds. They’re so against this idea that they’ve now launched a counter-suit. In the details of this counter-suit they’ve revealed some details of his spending. They’ve also revealed that his monthly expenditures are ASTRONOMICAL.
After hearing about his monthly expenditures, I asked a few people how much they think Johnny Depp spends each month. A few guesses were in the tens of thousands of dollars, the majority were in the $100,000 to $300,000 range both of these ranges aren’t enough for ol’ Johnny(that’s what his friends call him…). The highest guess was a million dollars, A MILLION DOLLARS EACH MONTH?!?! Well that’s not even close!
$2,000,000 each month!
Yes, you read that right. Johnny Depp apparently spends $2 million dollars EACH MONTH! That’s $24 million a year. That actually seems high compared to how much money he makes…maybe the rumors are true? Either way, thanks to the countersuit from his managers we get to learn a few lessons about his monthly expenditures and large purchases.
- Johnny Depp apparently has wine delivered to himself from all over the world. This accounts for only a small portion of his budget. At $30,000 per month it’s probably more than most people’s yearly budgets.
This expenditure is ridiculous for obvious reasons but one you may not know is that most “experts” can’t tell the difference between a cheap or expensive wine. So basically, if you find a cheap wine you enjoy, drink that. Chances are that the “better” wines will only taste the same and cost more.
- While not a monthly expense, Johnny Depp spent millions “acquiring and/or maintaining at least 45 luxury vehicles” according to his former managers. That’s A LOT of wasted money. Sure if you’re that rich buy a few luxury vehicles, but do you need 45? I’m curious how many he drove regularly and how much it cost per kilometer for those drives.
- Another (alleged) non-monthly expense for Johnny Depp is the $18 million to “acquire and renovate a 150 foot luxury yacht”. The only smart thing about this purchase is that he probably bought it used. This means he didn’t pay for a huge depreciation hit as soon as it hit the water. If you want to buy assets to make you money, here’s where you should start.
- $200,000 per month on private jets – I get this one. I fly a lot and while first class would be nice, private jets would be even better. It’s more streamlined of a process and probably gets written off as a business expense for his taxes. The efficiency of a private jet for the super rich is understandable. Especially for CEOs and people who are paid so much per hour but that’s still a ridiculous amount of flight per month.
- Millions “to acquire and maintain a massive and extremely expensive art collection including over 200 collectible pieces and works by world famous artists such as Warhol, Klimt, Basquiat, and Modigliani; many pieces of expensive world class jewelry; and approximately 70 collectible guitars.” – This one might be the best choice! IF these are rare pieces and highly sought after they probably will go up in value. Art, especially originals by well known deceased artists usually increases in value. The artist isn’t creating anymore so the demand can increase which drives up the value.
- At least $300,000/month on a staff of approximately 40 full-time employees – If this is maintenance and housekeeping and he used most of his properties as income properties, these would all be tax deductible.
- Over $4 million on a start-up musical label run – Finally! Some entrepreneurial endeavor to make him some money! It’s about time Johnny Depp made a good choice…except this was a record label his childhood friend to run and manage. Another big mistake often made by celebrities, lottery winners and sports stars. Too often people who come into large sums of money spend it quickly thinking that they’ll always have a high income.
- Over the last 16 or so years while TMG managed his finances Johnny Depp spent $75 million to “acquire, improve and furnish 14 residences, including a 45-acre chateau in the South of France, a chain of islands in the Bahamas, multiple houses in Hollywood, several penthouse lofts in downtown Los Angeles, and a fully-functioning house farm in Kentucky”.
Now I really hope these weren’t just for him. Who needs “several penthouse lofts” in the SAME CITY? I understand the need and desire for multiple properties, I have several myself. Mine however are income properties, Johnny’s might not be. If you’re going to purchase multiple properties, it’s better to have them work for you. There’s nothing wrong with wanting vacation properties, but you’re not always going to be there. During the times when you’re not planning on being there you should try to rent them out. You can still lock out blocks of time for yourself to enjoy but there’s no harm in having it pay for itself if you can do it.
So there we go, Johnny Depp’s alleged bankruptcy is a learning experience for us all! Now tell me, how would you guys spend $2 million each month? Do you think you could actually spend that much?