Being a full-time musician can be a dream come true, but when it comes to managing your money, the dream can quickly turn into a nightmare. The good news is that there’s no reason to abandon the life you love over money when you can simply smarten up about your money habits, and continue to fund your chosen lifestyle. That said, it will be important to keep a close account of all of your money dealings, not just on a monthly basis, but on a daily basis as well.
Now, let’s take a look at some smart ways that you can better manage your money as a full-time musician. Of course, if you ever do find yourself having money troubles, self employed loans can be a lifesaver.
1. Plan Ahead
Whether you’re a street performer going out and doing your thing every day, or whether you’re in a band and have commitments on certain dates, one thing is certain: You need to plan ahead concerning your income. Being able to predict your income is a huge part of being financially responsible, and being able to function as an adult in society.
Of course, this can be difficult if your income as a musician is more sporadic, but that being the case, you should look back at how the money has flowed in the past, and get an idea of what you can expect in the future. Knowing what kind of income you’ll likely have each month can be a big hep in managing your money.
2. Avoid Dangerous Impulse Spending
Being a professional musician can put you in a lot of situations in which impulse spending is a likely possibility, and as everyone knows, impulse spending is the fastest way to blow your budget, and put yourself in a hole financially. The best way to avoid dangerous impulse spending is to give yourself a monthly allowance that you can spend however you want. This will allow you to indulge yourself to a degree that won’t break your budget, or leave you in need of self employed loans to bail you out of a tight spot.
3. Create an Emergency Fund
As someone who is self-employed, an emergency such as a medical issue, your house burning down, or unexpected funeral expenses could be a huge problem. The best way to deal with unexpected expenses such as these is to create an emergency savings fund. This money won’t be touched unless you really need it, so it can be a good idea to store it in a savings account where you can get some interest from it as well. As grim as it sounds, emergencies happen, and they can be very expensive.
4. Take a Financial Education Class
How financially literate are you? Surprisingly, most people just don’t know how to manage money because they were never taught by their parents or their school system. This has produced a population that has a tendency to overspend, and under-save.
Fortunately, you can take financial education classes to increase your financial literacy, and learn how to better manage your money. While this may seem an additional expense, the investment you make in these classes will help to better save and make money later. Of course, a self employed loan could also be used to pay for these classes if you want to go that rout.
5. Hire an Accountant
If you’re making enough money and you really can’t be bothered to keep track of it all, the easy way out is to just hire an accountant to do it for you. Their fees can vary, and how often they go over your finances and report to you is also something you’ll need to consider. However, in the end you will have a professional looking over it all, so you should be in good hands. Just make sure that you hire someone that you can trust, there have been stories of people being taken advantage of by their accountants, so make sure you do your due diligence before making a hire.
Making the Right Choices with Your Money
In the end, managing your money as a full-time musician is all about making the right choices with your money. This may sound obvious, but it can be very easy to make the wrong choices without even realizing it. Your best bet is to pay closer attention to your finances, and keep better track of how much money is coming in, and how much is going out. If you can do that, then you’ll be well on your way to better managing your money