6 Do & Don’ts Coping With The Money as an Artist
Even in these bad economic times, It is still possible to make money from music. After all, music never dies and entertainment is always needed by our mere human race.
Here are 6 Dos and Don’ts when you earned some money!
Stay Clear From Debts
Every month pay off your bills, bank loans, credit cards. Don’t wait till the end of the month after you’ve spent everything off! Nothing feels better to be free of debts and being able to focus on making music! And once you finish off a loan and never plan to go back, you’re a wise person
Save The Money!
Odd as it seems, I know this is a funny concept for people living in the 21st century, but you can choose not to spend everything away. How about investing in some money-saving plans? You might argue that the investment returns for savings aren’t high, but it’s definitely much cheaper to draw on your savings than to borrow.
Build Your Passive Income
This is where things get interesting. There will come times when we are unable to work probably because we fall sick or planning for a holiday. Passive income is what keeps money coming in even when we aren’t working. A good example; “Matthew is a musician who has his songs downloadable online. While he is on his holiday, he has fans continuing to purchase his music online. Matthew has a passive income stream.”
Still unsure what passive income is? Watch a video explaining passive income for musicians
Spend It All On Audio Gear
Weakness to many producers, unless you know what to buy, you probably don’t need that new audio gear. Spending it all without counting your ROI (Return on Investment) is unhealthy. So make sure you know what you really need, so the equipment or software you buy can hold up to its value.
Buy A Posh Car
Even kids these days know, the value of any car diminishes the very moment you drive it off the showroom. Unless you know what you area really doing, don’t invest a lot into automobiles. You’ll have loans hitting on you again plus the cost of maintaining the car.
Drink Your Money Away
Alcohol is an expensive waste of money that could kill you, yet it is consumed in many social parties and gatherings. I would advise you to steer clear, but if you have to drink, then remember the golden rule in this game. That golden rule is that you should only have drinks that people buy for you – you’re too important to pay for your own! (Musicians who play at clubs or events, take note)
Money Lessons For Us
There are so many ways to handle money. As a musician who is involved in the arts industry, it’s best you know how to manage your cash flows as well. Also, not forgetting to create passive income for yourself as a musician.
What are your do’s and dont’s when it comes to money? Share your story below!