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 something that often happens and if you aren’t any financial officer, things may go wrong. 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. These are the tips that will help you ensure that you don’t clear your bank account. It’s important for you to know how to manage your money as this will enable you to save a lot. Discover more of the tips in this page.
Whenever you earn money, it’s important for you to remember 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. Thus every time you get paid from a gig, you should create a pay stub and ensure that you divide the money well. The 50% of your pay should take care of your needs that include rent, bills, and food. The second part, the 30%, refers to the amount that you will use on what you want. This will include such things as new musical equipment, event clothes, or video games. The other 20% that has remained should be put away for savings. This is the money that will stay in your account should you have needs that will require you to touch your savings.
All musicians get their money from different plays that they perform often. 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. It’s important that you use a spreadsheet and make your budget well laid down. 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. Every gig will have its pay and they all vary that such a spreadsheet will be very useful.
Earnings for musicians will not be steady for all months as they will vary. 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. You should also ensure that you get ahead on your expenses. Thus you should always ensure that you can sustain yourself the next month even if you don’t earn much.