Almost everyone in life will find him/herself in tough financial times as financial management may be a hard thing. This will happen to almost everyone who has never done any financial management course. If you are a musician and you need to know how to manage personal finances, this website provides you with best tips to do that. It’s important to note that personal financial management is something that can best be achieved when you know the best tips. Thus what you earn in what you do will be managed well to prevent cases where you may clear your bank account. Acquiring the best financial management tips gives you the opportunity to live comfortably and enjoy life. Here are the right tips that you should learn.
Whenever you earn money, it’s important for you to remember the 50/30/20 rule. These numbers provides the basis on how you are going to divide your earnings. Thus every time you get paid from a gig, you should create a pay stub and ensure that you divide the money well. The 50% of your pay should take care of your needs that include rent, bills, and food. The other 30% should be used on what you want. This is the money that you will use to purchase new clothes, new musical instruments, video games, etc. Lastly, the 20% that remains should form your savings. This is the money that will stay in your account should you have needs that will require you to touch your savings.
All musicians get their money from different plays that they perform often. Your pay will be on a day to day basis and this will prevent the clarity of the big picture in your sight. To prevent such things, it’s wise to go through what’s in this page and learn more. It’s important that you use a spreadsheet and make your budget well laid down. Such a spreadsheet will bring in a clear picture and help you know more about the money you have to use to pay for bills. You will notice that different gigs take different prices and with a spreadsheet, you will manage everything well.
Musicians always make money depending on the state of the month. Some months come with huge pays and others will be low. 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. When you use this spreadsheet as you will view here, it will be easy to do that. You should also ensure that you get ahead on your expenses. It’s wise to plan yourself in a way that you can pay for your bills the following month even if you won’t do work.