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. 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 are the numbers that relate to the percentage of how you should always divide the money that comes in. This is to mean that payment from a gig should be divided by using the ratio above to avoid money wastage. This means that for every pay, 50% of the earnings will pay the various needs including food, rent, and bills. The second part, the 30%, refers to the amount that you will use on what you want. Such expenses will cover the money for new musical instrument, a video game, or even new clothes. Lastly, the 20% that remains should form 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. Your pay will be on a day to day basis and this will prevent the clarity of the big picture in your sight. It’s important that you read more here and learn how to be financially vigilant. You should use a spreadsheet now and create a budget. With a good spreadsheet you will be able to see well the amount of money that you will have to pay off for various bills. This will be useful since gigs often vary in pay.
Every musician will make money that will vary every money. In some months, you will receive huge amounts of pay and in others, you will earn low amounts. 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. This homepage will show you more about how to use the spreadsheet and make things easy for you. 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.