The Most Important Personal Finance Tips For Musicians
Personal financial management isn’t something simple for everyone. This is true for every professional who don’t have financial management skills or training. If you are a musician and you need to know how to manage personal finances, this website provides you with best tips to do that. Once you have learnt these best tips provided here, you will find it easy to manage your finances. 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.
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 ratio dictates that 50% of your earnings will be used to pay for personal needs such a bills, rent, and food. 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. The remaining 20% should be your savings. This money will be put away for a later date.
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. One way to get things work well is to use a spreadsheet to 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. 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. 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. Use the spreadsheet above and make sure that you have accounted well for the low months pay. 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.