If you have ever been desperate for something to watch on TV you have probably seen a show on MTV called “Cribs.” This show basically takes you to the homes of some of the world’s biggest celebrities and allows them to show off their mega expensive homes. This has filled many a struggling musician with hopes of swimming in pools filled with money and buying the most expensive toys to play with. Unfortunately, that’s not how it works in the real world. Many musicians are making foolish investments with their money and are ending up flat broke by trying to live larger than they can really afford to live.
It is extremely important to be responsible and smart with the money you make from your music. The music industry is fickle and changing, so while you may be a hot item today, tomorrow you may be in the garbage, so it’s important that you handle your money right. It’s not a good idea to just blow the money you make from shows and CD sales. Don’t forget you have rent to pay and you need to eat.
You should create a budget to help keep track of the money you bring in and the bills you need to pay and when they are due. Make sure to set aside certain amounts for each bill every week. Also take a small percentage of your cash and set it aside for your music needs, such as new equipment, production and recording costs, and so on. Put a percentage of your money in the bank each week as well. Don’t forget to slice off a little chunk of the cheddar for yourself as well, as you’ve earned a little spending money. Just be responsible and don’t blow money on unnecessary items.
Remember, you may not always be on top of the game, so it pays to prepare for the future. Take all the necessary precautions to make sure that if your music were to stop selling you would have the money you need to hold you over for awhile.
Pamela Doyle
for money management coaching www.CoachPamela.Com
Filed under: Lessons, Money Management | Tagged: Money Management
