Every time you hear news of broke musicians, it pains you that you will no longer listen to the great voice you grew accustomed to. Yes, even musicians get broke. But how is this possible with someone who was making millions of dollars in a single year?
Financial management is not an easy thing. You could make so much money and yet die a pauper. But that is not what you want for your music career, right? That is why these tips for managing your finances as a musician should find a favorite spot in your must-read stuff:
Save as much as you can
Saving is not easy, but you should get yourself into the practice of saving. Financial experts recommend that you set aside at least 10% of what you earn for saving. You can do better than this. Save as much money as you can. As long as your needs and those of dependents are taken care of; the rest of your stash should go into savings.
Keep a separate account for your music
It is tempting to have all your money in one pool. After all it is all yours. But that is a poor financial practice. You should have a separate account for anything to do with music. It will be easy to
account for what you earn and how you spend it. Have a plan for this money and only use it when it is absolutely necessary.
Stay out of debt
Earning a lot of money does not mean you will be 100% free from debts. Even the richest person in the world has some of debts. But as much as debts are inevitable, you should try hard to stay out of them. Budget for the little you have for all your needs. If you could stay with zero debts, the better it is for your finances.
Join the right musician societies
Musician protection societies not only champion for your financial rights but also train you on how best you can use your money. Find out about the best societies for people like you and take advantage of the financial education you can get from there. There are financial experts in these groups that will help you with investment decisions and how to keep your money tap running.
No one has so much money that you never need a budget. From someone with a few dollars to multi-dollar billionaire, every one of them needs a budget. As a musician you have to budget for your money. Sit down and list all your immediate and long term needs. Give priority to the most pressing needs. Always make sure some of the portion goes to saving.
Do not let your fame ruin your finances. Always have a financial discipline and you will never lack for anything. It is very sad that despite all the big money gigs you performed, you will go down as a musician who could not manage their money. Thankfully, these financial management tips just let you into the secret of taking care of your money.