The Best Personal Finance Tips Musicians Should Know
Managing finances is a hard task for everyone out there. This is true for every professional who don’t have financial management skills or training. In this page, you will be shown how to management your personal finances to ensure that your money will be well spend and you won’t go broke. You should know that though personal financial management may be a hard thing, it’s possible when you know some important 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.
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. 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 30% represents the money that you will spend on what you want. This will include such things as new musical equipment, event clothes, or video games. 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.
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. 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. Some months come with huge pays and others will be low. 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. Use the spreadsheet above and make sure that you have accounted well for the low months pay. Also, you should always be ahead on expenses every time to help you avoid financial problems. It’s wise to plan yourself in a way that you can pay for your bills the following month even if you won’t do work.