The Most Important Personal Finance Tips 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. With these guidelines, you will avoid cases of financial misuse and enjoy saving a lot of your money. Knowing how to do financial management is a great thing that will enable you live comfortably. Discover more of the tips in this page.
One of the most important tips in personal financial management is the 50/30/20 rule that you should have in mind. 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 ratio dictates that 50% of your earnings will be used to pay for personal needs such a bills, rent, and food. The second part, the 30%, refers to the amount that you will use on what you want. This is the money that you will use to purchase new clothes, new musical instruments, video games, etc. The remaining 20% should be your savings. This is the money that will stay in your account should you have needs that will require you to touch your savings.
Every time you do a performance, you will be paid as a musician. Given that the money comes in day to day depending on when you do shows, you may find it difficult to see the bigger financial picture. Hence you should get to discover more on how to manage your finances well and avoid problems. You should use a spreadsheet now and create a budget. Such a spreadsheet will bring in a clear picture and help you know more about the money you have to use to pay for bills. You will notice that different gigs take different prices and with a spreadsheet, you will manage everything well.
Musicians always make money depending on the state of the month. You realize that there are months that you will earn a lot and some that you will receive low earnings. Thus it’s important that you check well how you spend your money the months that you have earned a lot to ensure that you will cover for the months that you have earned less. The spreadsheet that you created will help you a lot here to save your money. You should also ensure that you get ahead on your expenses. This means that ensuring that you have money that can pay for your bills the following months even if you won’t have any work to do.