Managing finances is a hard task for everyone out there. This is true for every professional who don’t have financial management skills or training. In this page, you will be shown how to management your personal finances to ensure that your money will be well spend and you won’t go broke. It’s important to note that personal financial management is something that can best be achieved when you know the best tips. These are the tips that will help you ensure that you don’t clear your bank account. Knowing how to do financial management is a great thing that will enable you live comfortably. Here are the right tips that you should learn.
Every time you earn money from your work, you should remember to follow the 50/30/20 rule. These are the numbers that relate to the percentage of how you should always divide the money that comes in. This is to mean that payment from a gig should be divided by using the ratio above to avoid money wastage. The 50% of your pay should take care of your needs that include rent, bills, and food. The second part, the 30%, refers to the amount that you will use on what you want. This will include such things as new musical equipment, event clothes, or video games. The remaining 20% should be your savings. This money will be put away for a later date.
Musicians often earn their money every time they do a play. Thus as a musician, you will earn on a day to day basis based on the shows you have performed and this is what will make you not see the real big financial picture. 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. With a good spreadsheet you will be able to see well the amount of money that you will have to pay off for various bills. This will be useful since gigs often vary in pay.
Musicians always make money depending on the state of the month. In some months, you will receive huge amounts of pay and in others, you will earn low amounts. You should ensure that you make the best budget that will enable you take care of low pay months by using the high pay months well. The spreadsheet that you created will help you a lot here to save your money. 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.