People nowadays have their own respective path in terms of passion and talent. Focusing on where you’re good at can make you a star and can make you aim bigger. But we all know that it always involves money to have a successful career. Musicians are one of those who are spending more money because their equipment is a bit expensive. As a musician, you need to be smarter and responsible in managing your expenses. Listing some tips here can help you to be wiser in terms of finances:
PAY ATTENTION TO NEEDS AND WANTS
Being a musician, you’ll love to have good and modern equipment. However, you must think thoroughly if you need to spend money for that. Focus on what do you need and not only on what you wanted. Be positive that it can bring a good effect on your finances if you prioritize what is more important.
SELECT YOUR REVENUE STREAMS
You have to decide which revenue streams you can tap into in order to support yourself as a musician. Once you already finalized a decision, figure out how much money you can make from each of your revenue streams. If you are already deriving income from performing or even from teaching, you know how much you can earn per gig or how much you can charge for an hour long session.
SET YOUR ANNUAL INCOME GOAL
As a musician, you need to be ready to set your annual income goal so that you can know how much you need to earn. Your goal is to earn more than you spend and to live within your means to carefully track your expenses on a regular basis. Add up your expenses from your annual budget. Be sure to include provisions for taxes, insurance and savings. That will be the number that you need to earn in order to support your lifestyle and secure your future.
CALCULATE YOUR ANNUAL INCOME GOAL
Don’t forget to calculate your annual income. For each revenue stream that you’ve listed, identify the charge per service, the number of services per month and the number of months per year to derive your annual income from this revenue stream. But please be sure to be realistic about how often you can perform. If the overall total of your revenue streams falls short of your annual expenses, think about other ways to derive income.
As a musician, knowing and setting your ways on how you can manage your finances is very essential for you to secure your future. If you’re aiming for a big set of goals, be smart on how to be more responsible on your present to have a great living on your tomorrow.