EDWARD SCISSORHANDS WILL BE CUTTING DOWN ON EXPENSES SOON
Johnny Depp is perhaps one of the most popular Hollywood celebrity on the planet. He gains the spotlight a new with respect to his (mis)fortune.
Whatever may be truth behind what happened to his wealth, the following are some that may be learned from it.
Key takeaways:
1. Document transactions
- No documentation, no proof.
- Contracts make clear the terms and conditions of a transaction.
- Documentation generates necessary evidence in case of dispute later on.
2. Manage your wealth.
- Wealth management is a personal responsibility.
- Managers are there only to assist and facilitate.
- Provide clear writteb instructions when making purchases.
3. Moderate spending.
- Basic math will tell you that your expenses should not be more than your income, if you want to be on the black.
- Double-down on thinking twice before spending.
- If you have to spend, do it on investments like real estate, stocks, bonds, and analogous financial instruments, or in businesses.
4. Set boundaries.
- When his family claimed that he gave them the Kentucky farm where they live in and promised to regularly provide them money, he denied it.
- Setting clear boundaries fron the start is crucial to avoiding sensitive family disputes.
- Documentation is again vital.
5. Sign a prenuptial agreement.
- No matter how wealthy a perso is, every divorce/annulment of marriage reduces his/her wealth by half.
- Imagine if there are two or more marriages and they go south.
- In the Philippines, prenuptial does not rule out the spouse from being a compulsory heir in case of deathy by the other; validity of prenuptial agreement is only during the lifetime.
6. Pay your taxes.
- Sometimes, due to non-payment of taxes, penalties and surcharges are higher than the prinicipal tax payment due.
- Creating the necessary fund for tax payment is thus important.
- Ensure documentation for tax payments made.
