Luxury lifestyle leads to the risk of facing debt
Amber Heard’s reputation rose like a kite after the movie Aquaman 1, she is considered a quite successful actress. However, during the 6 weeks of litigation with ex-husband Johnny Depp, the public was surprised to learn that the Aquaman 1 actress had a much lower income and net worth than her reputation.
The amount of money Amber Heard earned from 2013 – 2019 was revealed in court a total of 10 million USD (nearly 232 billion VND). According to Celebrity Net Worth, Amber Heard’s net worth is only about 8 million USD (about 185.5 billion VND).
Amber Heard is also said to be unable to pay 10.35 million USD (240 million VND) to her ex-husband. Partly because her income is not as high as many people think, the other part is mainly the way of spending too lavish compared to the amount of money the actress earns.
Amber Heard and the expensive car
In 2016, when she filed for divorce from Johnny Depp, Amber Heard’s finances were a rather lackluster picture. At that time, the estimated amount of money the actress earned was about 10,000 USD (about 232 million VND) per month, but her “basic” expenses fell to 44,000 USD/month (1 billion VND). That is to spend 4 times the income. According to Newsweek, Amber Heard originally asked for a divorce settlement of $4 million, but that figure has since grown to about $14 million. During the two years of 2017, 2018, the actress lived a luxurious life with the amount of $ 6.8 million from her ex-husband.
Amber Heard spends about $120,000 a year just on rent. This is one of the most expensive things the actress has paid each month and listed and “basic” costs. Besides, she spends $2,000/month just for expensive designer “dresses”. Amber Heard is famous for only wearing designer clothes and adding to that the costs for stylists, hairdressers, makeup artists, … make the number dedicated to the apparel category increase significantly. .
Amber Heard goes shopping at the Chanel store in Paris on September 29, 2019
The actress also spends $2,000 on dining out, $2,000 on grocery shopping, $3,000 on health care, and $5,000 a month on entertainment and gifts. This is an unbelievable number while before that, she was said to only earn $ 10,000 / month.
Amber Heard’s life took a turn after she lost her lawsuit and had to pay more than her net worth. The main reason for the actress to fall into this situation is her lavish lifestyle, lack of awareness of her own money source, leading to excessive spending.
How to avoid a lavish lifestyle?
The lesson learned from Amber Heard’s situation is that regardless of age, regardless of income level, the balance between cash flow in and out is very important. When this balance is lost, your financial life will easily fall into a negative state. Here are 6 ways to not make the mistake of spending more than you earn:
1. Be aware of your spending options
The first step to take is to understand that a lavish lifestyle is indeed a threat to one’s personal finances. Just from the habit of overspending no matter how small, you can easily fall into poverty every month. Over time, it often leads to debt.
As you set your budget, consider the threat of unnecessary spending. When you want to add a new expense to your life, think about the reasons behind it. Is it an essential item? Or will it contribute to lifestyle changes without increasing your quality of life?
2. Consider carefully when your income increases
As incomes increase, we instinctively celebrate by spending on something we don’t really need. Before deciding to upgrade your lifestyle, take a closer look at your increased income. Sometimes it’s just a modest increase, it’s inconsistent, and it doesn’t give you a significant boost to your monthly spending.
3. Treat yourself within reason
Everyone deserves to be pampered, treat yourself better, but don’t go overboard! While short-term pleasures can be enjoyable, don’t let them derail your long-term goals.
For example, this dress is very beautiful, but you will have to pay 5 million – ½ of your income to get it. In this case, that might not fit your budget. If you buy that dress, you’ll have a month of “austerity” in other expenses, an unnecessary trade-off.
4. Set aside a percentage of your fixed income for spending
You should absolutely spend enough on what really matters to you. However, consider the reality of your budget before overspending.
If you get a raise, decide how much you’re willing to spend on “fun” yourself. As you think about increasing your lifestyle spending, take a moment to determine how you want to use this “new money” to achieve your long-term financial goals. Find a balance between the two that suits your lifestyle and financial goals.
5. Gradually add big changes to your budget
We often want to upgrade the quality of our lives, especially as we enter adulthood. But it’s better to avoid rushing into multiple new lifestyle expenses at once. Instead, add new expenses one at a time, checking to see if it fits your budget.
If something really brings happiness or improves the quality of your life, stick with it. If you find that a new expenditure doesn’t enhance your happiness, don’t hesitate to cut it.
6. Set up automatic savings
An equally important thing to control your spending is to accumulate money. And the easiest way to save money is to automate it. With that, you won’t have to make savings decisions on a regular basis. Instead, you only need to “determine” once and let the automation help you.
If you want to easily make progress, transfer your intended savings directly into a separate account. You can then spend the rest of your paychecks without having to consider savings goals.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
