Tips for Creative Professionals on Managing Their Money
Managing money can be challenging, and it can be more difficult when you are engaged in the creative industry. As a creative professional—artist, photographer, writers, entertainer, etc.—you will have some extra financial curveballs to deal with, and rather than receiving regular salary, you would be making income that is pieced together from multiple sources, which do not carry benefits and could dry up any time. However, even if you do not hold a regular job, you can still achieve financial security. Here are some great tips on managing your money:
Only charge your client what you are worth.
Keep in mind that society does not always value your work, and sometimes, you would also have some hang-ups around money that will prevent you from charging what you are worth and collecting on invoices. Well, it can be hard to receive payments for something that you are passionate about, as you would feel like you have not put in enough work in it. This is a mindset that you have to change, or else, you will not have a business, but only a hobby.
Make sure you are properly managing an influx of cash.
In this line of work, it can be tempting to splurge when you have suddenly landed a huge project, especially if it is your first time receiving such. The bad thing is, you have spent your money and then told that the project is cancelled. The rule of thumb here is to wait for some time to see if the project goes on as expected. Remember that high excitement and similar emotions can make you feel freer with your money, so try not to succumb to the urge to splurge it. Simply put, be conservative with it!
Learn to sustain your finances during lean times.
Budgeting around a variable income is very important, especially during lean times. If you are using credit cards, it might good for you not to greatly depend on them, as they might put you into debt problems. Try to learn how to create a contingency fund and manage cash flow for dry financial spells.
If you are having some difficulties managing your money as a creative professional, the above-mentioned tips are a great start to ensure better financial future.