While many of us feel that we never have enough money and we could all benefit from having more money, there is a need for people to think about their cost of living. The disparity in how much money people need to live their life in a comfortable and content manner is always a great discussion point because there is a huge variety in what people deem to be acceptable. This is why there is often disbelief when cost of living problems are mentioned.
The last cost of living problems that have caused many people to gasp and then maybe laugh are the ones that are troubling Johnny Depp. Depp has been through a high profile separation of late, which is always going to have a financial drain on a person. There is also the fact that Depp is currently suing a business manager over an alleged mismanagement of funds. The manager has responded by saying the problems arise due to Depp having a lifestyle which sees the actor burn through $2m a month.
Do you suffer from cost of living problems?
Depp made a claim against the management group for a sum of $25m, which comes in at around £20m in the current exchange rate. As so often happens, the management group have responded in kind by making a counter-claim against Depp, saying he is fully responsible for the financial difficulty that he is in. A lot of people will struggle to come to terms with the cost of living problems that Depp says he is suffering from, but this is the whole point of cost of living problems.
An individual who earns £100 a month and spends £90 a month leaving them with £10 at the end of the month is in a better financial state than someone who earns £5,000 a month but spends all of that £5,000 and also racks up credit card debt. In effect, that individual has a negative net spend in a month, which means that they owe money. It is easy to see why cost of living problems begin when people don’t use their money wisely.
There are solutions and help available, with a guarantor loan being a fine example of a short term solution that allows people to regain control of their life again.
Avoiding cost of living problems in the long term takes hard work and a focused approach but it can be avoided.