Personal financial management isn’t something simple for everyone. This will happen to almost everyone who has never done any financial management course. 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. 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. 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. These are the numbers that relate to the percentage of how you should always divide the money that comes in. This means that if you are paid a given amount, it’s important that you use the ratio and break down your earnings. 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 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 money will be put away for a later date.
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. 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. This will be useful since gigs often vary in pay.
Every musician will make money that will vary every money. 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. The spreadsheet that you created will help you a lot here to save your money. 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.