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SESSION FOUR: Musicians and Long Term Finances

I was wondering if you could do a short video about making a living as a musician. You seem to have been doing it for a long time and nobody around me personally has been all that supportive of my interest in it as a career. They just don’t think that I can make a living as a guitaist.
~ Mac - Bakersfield, CA. U.S.A.


MUSICIANS AND LONG TERM FINANCES...

As we wrap all of this up, I’d just like to spend our last words on long-term thinking about taking up music as a carreer. The music business can have a lot of up’s & down’s and it can sometimes be
hard to feel happy or even successful when your worried about paying your bills and the rent.

This primarily has to do with your long-term money management. I’d like to look next at a number of points to do with musicians and long-term money practices...

- SAVE & INVEST MONEY: The concept of saving money might not be easy to do but it is crutial for peace of mind in this industry. One of the best tips I can give you is that of saving unexpected income. If you get a last minuet job on a Saturday night take that $80 or $100.00 and save it. If all you do is spend your income as soon as you get it, things will be much harder when you have a dry spell and need cash on hand to pay bills and buy your groceries. Cars, a Home, Antiques... are all excellent investments that normally hoold or appreciate their value.

- GET HEALTH INSURANCE: Unless you so happen to be married to a spouse that has a health/medical plan, medical expenses can really add up and cause you a lot of problems financially. Insurance isn’t exactly cheap however you will need it through a year for; dental, perscriptions and unforeseen medical bills. Talk to your local Union if you don’t know where to begin with Health Insurance.

See top of page for continued reading...

 

- SET UP A RETIREMENT PLAN ACCOUNT: You simply must establish a long-term Registered Retirement plan. There will come a day when you
simply won’t physically be able to continue a full-time schedule of playing music. I would highly suggest starting quite young. Age 23 - 25 is ideal. Beginning at those ages will give you about 40 years of compound interest in the investment straegy you choose with your retirement plan.

When asked to name the greatest invention in human history, Albert Einstein simply replied,
"compound interest."

- KNOW WHEN TO STOP BUYING GEAR: I’ve watched so many young musicians spend thousands on equipment. But, unless you are rich, you’ll never keep up. All you’ll do is create a good deal of unmanageable debt. And, any consumer debt that’s not realted to things you absolutely need is bad debt. Resist the marketing wizards manipulation to have you consume!

 

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