Financial Management Guidelines For Musicians
Almost everyone in life will find him/herself in tough financial times as financial management may be a hard thing. This is true for every professional who don’t have financial management skills or training. Provided in this page are things that you should learn to ensure that as a musician, you will be able to manage your finances well. It’s important to note that personal financial management is something that can best be achieved when you know the best tips. Thus what you earn in what you do will be managed well to prevent cases where you may clear your bank account. Knowing how to do financial management is a great thing that will enable you live comfortably. Check the best tips below.
Every time you earn money from your work, you should remember to follow the 50/30/20 rule. These numbers provides the basis on how you are going to divide your earnings. This means that if you are paid a given amount, it’s important that you use the ratio and break down your earnings. The 50% of your pay should take care of your needs that include rent, bills, and food. The 30% represents the money that you will spend on what you want. Such expenses will cover the money for new musical instrument, a video game, or even new clothes. The remaining 20% should be your savings. This money will be put away for a later date.
All musicians get their money from different plays that they perform often. Thus as a musician, you will earn on a day to day basis based on the shows you have performed and this is what will make you not see the real big financial picture. To prevent such things, it’s wise to go through what’s in this page and learn more. One way to get things work well is to use a spreadsheet to create a budget. This will enable you to see how much money you will need to pay off for bills. You will notice that different gigs take different prices and with a spreadsheet, you will manage everything well.
Every musician will make money that will vary every money. Some months come with huge pays and others will be low. This is the reason you should ensure that you budget well the months that you earn more to cover for the months that you will earn less. The spreadsheet that you created will help you a lot here to save your money. Also, you should always be ahead on expenses every time to help you avoid financial problems. Thus you should always ensure that you can sustain yourself the next month even if you don’t earn much.