The Best Personal Finance Tips Musicians Should Know
Personal financial management isn’t something simple for everyone. This is something that often happens and if you aren’t any financial officer, things may go wrong. 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. These are the tips that will help you ensure that you don’t 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. This is the ratio that guides how you should divide your money that you have earned. This means that if you are paid a given amount, it’s important that you use the ratio and break down your earnings. This means that for every pay, 50% of the earnings will pay the various needs including food, rent, and bills. 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.
Musicians often earn their money every time they do a play. 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. 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. 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. Use the spreadsheet above and make sure that you have accounted well for the low months pay. Also, you should always be ahead on expenses every time to help you avoid financial problems. Thus you should always ensure that you can sustain yourself the next month even if you don’t earn much.
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