The Most Important Personal Finance Tips For Musicians
Personal financial management isn’t something simple for everyone. This is true for every professional who don’t have financial management skills or training. 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. You should know that though personal financial management may be a hard thing, it’s possible when you know some important tips. Thus what you earn in what you do will be managed well to prevent cases where you may clear your bank account. 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 are the numbers that relate to the percentage of how you should always divide the money that comes in. This is to mean that payment from a gig should be divided by using the ratio above to avoid money wastage. 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 is the money that you will use to purchase new clothes, new musical instruments, video games, etc. The other 20% that has remained should be put away for savings. This is the amount that you don’t spend.
Musicians often earn their money every time they do a play. 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. 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.
Musicians always make money depending on the state of the month. You realize that there are months that you will earn a lot and some that you will receive low earnings. 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. When you use this spreadsheet as you will view here, it will be easy to do that. You should also ensure that you get ahead on your expenses. Thus you should always ensure that you can sustain yourself the next month even if you don’t earn much.