The Best Personal Finance Tips Musicians Should Know
Almost everyone in life will find him/herself in tough financial times as financial management may be a hard thing. 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. 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. Acquiring the best financial management tips gives you the opportunity to live comfortably and enjoy life. Check the best tips below.
One of the most important tips in personal financial management is the 50/30/20 rule that you should have in mind. These numbers provides the basis on how you are going to divide your earnings. This means that if you are paid a given amount, it’s important that you use the ratio and break down your earnings. 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. 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 amount that you don’t spend.
All musicians get their money from different plays that they perform often. Your pay will be on a day to day basis and this will prevent the clarity of the big picture in your sight. Hence you should get to discover more on how to manage your finances well and avoid problems. One way to get things work well is to use a spreadsheet to 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. This will be useful since gigs often vary in pay.
Musicians always make money depending on the state of the month. 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. 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. 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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