Financial Management Guidelines 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. 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. 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. Knowing how to do financial management is a great thing that will enable you live comfortably. Discover more of the tips in this page.
One of the most important tips in personal financial management is the 50/30/20 rule that you should have in mind. 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. The ratio dictates that 50% of your earnings will be used to pay for personal needs such a bills, rent, 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 money will be put away for a later date.
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. To prevent such things, it’s wise to go through what’s in this page and learn more. It’s important that you use a spreadsheet and make your budget well laid down. This will enable you to see how much money you will need to pay off for bills. Every gig will have its pay and they all vary that such a spreadsheet will be very useful.
Musicians always make money depending on the state of the month. 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. Another way to ensure financial security is to be ahead on expenses always. Thus you should always ensure that you can sustain yourself the next month even if you don’t earn much.
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