The Most Important Personal Finance Tips For Musicians
Almost everyone in life will find him/herself in tough financial times as financial management may be a hard thing. This will happen to almost everyone who has never done any financial management course. 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. It’s important for you to know how to manage your money as this will enable you to save a lot. 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. 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 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 other 20% that has remained should be put away for 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. 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. 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. You will notice that different gigs take different prices and with a spreadsheet, you will manage everything well.
Every musician will make money that will vary every money. Some months come with huge pays and others will be low. You should ensure that you make the best budget that will enable you take care of low pay months by using the high pay months well. This homepage will show you more about how to use the spreadsheet and make things easy for you. 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.