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It is not a secret that an artist’s true talent is creativity. In many cases, creating music might be their ultimate gateway from reality to the perfect fantasy. Luckily this very talent is also a source of income for many professional musicians. Like other professions, a music career is also a product of years of planning, hard work, and sound choices.

Regarding money management, being a professional musician is different from the other traditional career and can pose a unique financial challenge. So, here are five ways through which musicians can manage their finance and improve their future.

Let’s dive in!

1. Align Your Goals

A myth says all musicians are born with talent and a good voice that captures the audience’s heart. Well, this is not the truth! Musicians spent hundreds and thousands of hours practicing, learning from their masters, and competing to reach the highest rank.

If only musicians spent a small fraction of that energy, time, and deliberation in setting their financial goals and educating themselves about financial management, they would become incredibly successful.

Thus, take a pencil and a notebook or a digital device, align your goals concerning priority and start saving for your better future.

2. Act Like An Entrepreneur 

We know that your dedication is towards your art but be sure not to neglect your business. Develop various sources of revenue such as gigs, styles, teaching, administration, etc., to diversify your income stream and gain the flexibility to change when opportunities arise or go away.

3. Keep The Emergency Fund

The standard rule of thumb is to keep 3-6 months of living expenses in hand for emergencies. For musicians, this ratio extends to 6-12 months if only they can save money worth for this much duration. Your income can be highly flexible, and if you can’t work, your income goes to zero.

4. Actively Pay Your Taxes

The more money you keep inside your bank account, the more you earn annually. Try to be organized with your receipts and archives. Doing such will help you keep track of the tax situation before the due date.

Don’t wait till April or May to think about your deductions and avoid leaving everything to the last minute. If you have both salary and self-employment income, try to deduct general expenses against your self-employment income.

You can also take help from money management software to track your expenses and revenue. They help artists to maintain their finances while keeping track of profit and loss.

5. Don’t Skip Insurance

Don’t forgo health insurance at any age. Make sure you have coverage for home and auto that protects you. If you get a disability policy, make sure it covers your occupation as a musician.

Moreover, if other members depend on your income, you need to sign a life insurance policy.

In A Nutshell

Musicians often stress money management. However, they are most likely to make a career out of their art once they start financing their needs, costs, budget, and savings.

If you want an easy-to-use financial management software, you may contact My EasyFi.