Minding Your Money: Balancing the Financial Side of Your Creative Career

Welcome, my fellow creators! 😊

Being a creative person is amazing, but it’s not always easy when it comes to money. Many of us have been told that we can’t make a living out of our passion, but I’m here to tell you that this is not true. With some effort, dedication, and smart money management, we can balance the financial side of our creative career and thrive.

So, let’s dive into the world of finances and creativity! 💰🎨

Track Your Income and Expenses

The first and most important step to achieving financial balance is knowing what’s going in and out of your bank account. Create a spreadsheet or use a budgeting app to keep track of your income and expenses. Include not only your business-related costs like supplies, equipment, and rent, but also your personal expenses such as rent, food, health insurance, etc.

By doing this, you’ll have a better understanding of where your money is going and where you can cut back. Plus, it’ll make tax season a lot easier!

Diversify Your Income

As creatives, we have a unique set of skills that can be used in many different ways. You don’t have to rely solely on one source of income, such as selling your artwork or freelance projects.

Consider offering workshops, creating e-courses, starting a YouTube channel, or even writing a book. The more income streams you have, the less reliant you’ll be on one specific source.

Set Financial Goals

Whether it’s paying off debt, saving for a downpayment on a house, or simply having a rainy-day fund, it’s important to set financial goals for yourself.

Make your goals specific, measurable, achievable, relevant, and time-based. For example, “save $5,000 for a new camera by December 31st” is a much better goal than “save some money for a new camera.”

Write your goals down and keep them visible to regularly remind yourself of what you’re working towards.

Embrace the “Starbucks Latte” Factor

You’ve probably heard of the “Starbucks latte factor,” but in case you haven’t, it’s the idea that small purchases add up over time.

Cutting back on daily small expenses like buying coffee or eating out can make a big difference in your finances. This doesn’t mean you have to give up these things entirely, but incorporating small adjustments can help you save money in the long run.

Don’t Undervalue Your Work

As creatives, we often struggle with pricing our work appropriately. It’s important to remember that your work has value, and you should never undervalue it.

Do your research and see what others in your field are charging. Consider your time, supplies, and experience when determining your prices. Remember, you’re not just selling a product or service, but also your creativity and skill.

Save for Taxes

As someone who has been hit with a big tax bill unexpectedly, I cannot stress this enough: save for taxes!

Estimate what you’ll owe based on previous years, and set aside money accordingly. This will save you from a huge headache come tax season.

Keep Learning

Finally, never stop learning. Stay up to date on the latest trends in your industry, take classes on financial management, and read books on money management.

The more you know, the better equipped you’ll be to manage your finances and grow your creative career.

And there you have it, folks! By implementing these tips, you’ll be well on your way to balancing the financial side of your creative career. Remember, it’s all about taking small but meaningful steps towards your financial goals.

So go forth and create (and manage your money like a boss)! 💪🏽💸