Your spending habit is the secret key to success as a full-time musician. While putting in the work and getting gigs, a lack of spending awareness may lead you to financial doom. Tracking expenses is essential; it is a watchword that should be in every musician's mind. Relax your mind if you do not know how to track your expenses or analyze your budget. This article will bring you all you need to know about budgeting as a full-time musician.
Importance of Tracking Spending
As a full-time musician, tracking your expenses helps you identify where your money goes, identify areas of overspending, and make informed decisions concerning your money. Doing music full-time is a risky job. The wrong use of money will make you regret your financial and career decisions. By tracking your expenses, you get to take control of your money and make long-term goals to grow your finances.
Spending Pitfalls for Musicians
Individuals differ in their ability to spend money. However, some everyday habits are common to people in the same career. Below are examples of common spending pitfalls among musicians.
1. The constant desire to get new equipment despite the previous one being functional.
2. High studio rent, production costs, and engineering fees can add up to a huge debt for musicians.
3. The lifestyle of other musicians may seem tempting. This leads you to spend excess money to fund a lifestyle you may not be able to afford.
What Are Spending Triggers?
Three major spending pitfalls for musicians have been explained above. However, there are some triggers that cause musicians to spend impulsively. These triggers are
Stress and Anxiety
Making music is a stressful craft. At times, anxiety creeps in from self-doubt and an inferiority complex. To escape from these realities, musicians tend to spend lavishly.
Peer Pressure
The music industry is filled with different people. In the bid to live and meet the standards of your favorite musician, you may then be overspending to afford the lifestyle.
Celebration
A well-paid gig calls for celebration. However, the joy of the day may be overwhelming, which can trigger spending money outside your budget.
Create a Budget
You are identifying causes and triggers if overspending will help you avoid them. However, staying clear of these triggers doesn't improve your fines. To get better with money, you need a budget. If you are stuck in creating a budget, follow these steps to get started.
Get your financial information
List your average income from gigs
Categories your expenses using different tracking methods.
Plan the money for all your costs and needs
Review and adjust
Tracking Methods
You must know either of these tracking methods to get better with your finances.
Manual tracking
Manual tracking is done using spreadsheets, journals, or notebooks. You fill in the information by hand.
Digital Tools
You can download software or an app that helps budget and track finances.
Expense Categorization
Categorizing your expenses into different sections helps track your effectively.
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