How to Manage your Finances as a Musician?
All of us know that sometimes in the Musical Career the highs are too high and the lows are too low. Therefore, you must know how to manage your money as a musician if you want to continue to work your way up in the industry with financial stability. So, if you are one of those people who is into a high-risk music career, proper financial planning should be your priority.
Therefore, we are here to guide you on how to manage your finances as a musician with these five essential tips.
- Budgeting and Savings
When you are living a life with an unstable income, you must know how to live within your means. This means that you have to separate a part of your income as savings and plan how to spend the rest carefully.
Keep a check on how much you spend on clothes, how much on rent and food, and how much you can still have for little guilty pleasures. Budgeting and savings help you keep track of your finances so that you don’t squander it away. So plan a budget and stick to it to start saving.
- Being Financially Organized
When you have money, no matter how little, you should know how to keep it organized. Make sure you have separate accounts for savings and expenditure. Also, keep a separate account for shopping for your musical equipment and other investments as well so that you get a clear picture of it in your bank statement every month.
This way you would save time spent in the calculation of all your purchases at the end of every month. Being financially organized helps you to manage your money as a musician without any ambiguity.
- Accurate Business Knowledge
When you finally start understanding all the financial aspects of making music, it becomes easier to predict your a-game. Right from the idea generation to the composition of music, and its final curation and distribution, you know where you will have to invest money.
Similarly, you can predict your earnings from a specific music piece. Therefore, analyze the environment you work in meticulously, and use your knowledge to plan your finances.
- Effective Risk Management
The life of a musician is unpredictable and full of risks. That’s why when it comes to money, effective risk management is beneficial for every musician.
Thus, you must have insurance policies for all your stuff. The insurance will cover all your expenses in case of disasters like house fires or explosions and save you from going broke.
- Passive Income Sources
As a musician, you should have at least two passive sources of income besides music so that you can survive your low phases.
A person can easily invest in dividend stocks and have a stable source of cash flow every month. You can also invest in rental properties or rent a room in your house and earn pretty well.
Now that you know how to manage your finances as a musician, you must know that we at Deliver My Tune are known for working in a musician’s favor. With musicians getting 100% rights and 90% royalty of the music, it is a blessing for every musician on both professional and financial level. So go on and start exploring!