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. 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. 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. It’s important for you to know how to manage your money as this will enable you to save a lot. Discover more of the tips in this page.
Every time you earn money from your work, you should remember to follow the 50/30/20 rule. This is the ratio that guides how you should divide your money that you have earned. 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 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 remaining 20% should be your savings. This is the money that will stay in your account should you have needs that will require you to touch your savings.
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. Hence you should get to discover more on how to manage your finances well and avoid problems. 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.