Are you a musician and find that managing your money is near impossible? If so, we are here to tell you that it’s possible as long as you know the right personal finance tips.
Knowing how to manage and save your money can make a world of difference and help you to live comfortably and not paycheck to paycheck. To see our top tips keep reading below.
1. Keep the 50/30/20 Rule in Mind
When you earn money from your gigs one of the most important personal finance tips we can give you is to keep the 50/30/20 rule in the back of your head. These numbers relate to the percentage of how you should be dividing the money you earn.
This means that if you get paid 100 dollars from a gig you should create a pay stub and then break it down. 50 percent, or 50 dollars, of your earnings, should go towards your needs such as rent, bills, and food.
30 percent of your earnings, or 30 dollars, should be put towards what you want. This can include things such as new musical equipment or even new clothes or a video game.
Lastly, 20 percent or 20 dollars should be put away for savings. This money should be put away for a later date when you’ll need to tap into savings to make ends meet. It can also be useful for saving up for a big purchase.
2. Use a Spreadsheet to Budget
With your musician money coming in day to day depending on when you play shows, it can be hard to see the bigger financial picture. One way to stay on track and to make sure all your bills are paid is to use a spreadsheet and create a budget.
You can use a spreadsheet to help you see how much money needs to go towards a bill to help pay it off. Since gigs vary in pay this is a great way to stay on track and to even save.
3. Make Sure You Account for Low Earning Months
When making money as a musician some months can bring in big bucks while other months it can be hard to make ends meet. This is why you should be budgeting the months you earn more to help make up for the lost income in lower-paying months.
You can do this easily by using the spreadsheet tip above. Make sure you save and then keep track of which months have more gigs and which ones have less so you can use your savings to make things a bit less tight.
4. Try Getting Ahead on Your Expenses
A great way to make sure bills are paid on time is to be a month ahead of expenses. We don’t mean you need to pay your bills a month ahead every month, but keep at least a month’s worth of bills in your savings. This can help you pay your bills when money is low and even help you to have some time to get the last extra bucks to pay a bill.
Now You Know the Best Personal Finance Tips for Musicians
We have given you the top personal finance tips for musicians so you can live comfortably. From saving money for your bills a month ahead to using spreadsheets to look at the bigger picture, you’ll be managing your money like a pro in no time. For more finance tips and information be sure to check out the rest of our website.