The Most Important Personal Finance Tips For Musicians
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. 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. Here are the right tips that you should learn.
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. This means that for every pay, 50% of the earnings will pay the various needs including food, rent, and bills. The other 30% should be used 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.
Musicians often earn their money every time they do a play. 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. 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.
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. 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.
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