3 Tips from Someone With Experience

February 5, 2021

Miscellaneous

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Financial Management Guidelines For Musicians

Managing finances is a hard task for everyone out there. 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. You should know that though personal financial management may be a hard thing, it’s possible when you know some important tips. With these guidelines, you will avoid cases of financial misuse and enjoy saving a lot of your money. Acquiring the best financial management tips gives you the opportunity to live comfortably and enjoy life. Discover more of the tips in this page.

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 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 remaining 20% should be your savings. This is the amount that you don’t spend.

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. It’s important that you read more here and learn how to be financially vigilant. One way to get things work well is to use a spreadsheet to 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. 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. This is the reason you should ensure that you budget well the months that you earn more to cover for the months that you will earn 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.