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MY⚡️Feature
featured piece of advice for creatives and creative leaders
Get Your Money Right
Anybody remember MC Hammer? He was a pioneering rapper and pop artist who had a string of hits in the late 80s and early 90s. What about TLC? They are one of the biggest RnB/Pop groups of all time with a handful of massive hits to their name. How about Willie Nelson, Mick Fleetwood, Marvin Gay, or Cyndi Lauper? You know what all of these major stars have in common? Bankruptcy…
They made millions, but eventually had to start over and figure out how to manage their money well.
As a creative entrepreneur it can feel like a mystery as to how to manage your money. Figuring out how to pay yourself or your employees, figuring out how to pay taxes, how to invest in the future, and save what you need to in order to prepare for the inevitable rainy day can all seem daunting.
I want to encourage you with some simple ways to look at the basics of being a solo-preneur or entrepreneur in this day and age.
First, think percentages, not amounts. Don’t think about paying yourself a certain amount of money per month or saving a certain amount of money per month. Just think about percentages. I give you a “for instance”.
I do my financials once a month. I look at all the invoices for the month and then I put 30% into an interest bearing savings account to pay my taxes with later. Then, I put 10% back into my business account, then I pay myself in payroll the remaining 60%. At the end of the year, I’ve always had more than enough to pay my taxes and even been able to pay myself a bonus and move money into savings from the left over amount. It’s better to save too much than not enough when it comes to taxes.
The percentages may not be the same for you, but you get the idea. The point is to create a system that responsibly saves and that can take care of your expenses and payroll at the same time. Obviously, there is a minimum associated with those percentages (you need to know what you need to make payroll, pay your bills, etc…), but thinking in percentages will help you as you’re building and/or rising to the next level.
Second, stick to the plan. Once you decide on a plan of how to manage your financials, stick to it. There is always a temptation to shift things around, but remember that you created your plan because you thought it was best. It doesn’t mean you can’t be flexible, but it does mean that you should be undisciplined. Create your financial plan and stick to it. You’ll be glad you did.
If you have a season where you don’t make your minimums you’ll be glad that you saved. If you have a season where you have excess you get to decide whether to invest more in the business, give some bonuses, or even save a little more for the future.
Third, try to avoid debt. We always have to make investments into equipment, education, resources, and personnel, but try to do it in way that creates as little debt as possible. If you do have to create debt and make payments try to find low or no interest options so it costs you as little as possible in the long run. That will help you spend responsibly and build credit for your business at the same time.
As creative people, we spend our lives learning our craft and enjoying the process of creativity so sometimes we miss out on educating ourselves on how to actually run a business and make a living at our craft.
Find someone you admire and trust, who is a little further down the path in their business and ask questions, learn, and apply what they share.
If you’re reading this, I want to see you succeed creatively.
I know this is a really basic look at a larger, more complex financial conversation, but I want you to make a living doing what you love. I know how hard that can be and sometimes we all have to revisit the basics.
I coach creatives of all kinds and I would love to help you. If you want to know more about creative coaching and what it could look like for you just fill out this quick form to set up a free coaching call. I’d love to help.
MY⚡️FI Podcast
a podcast about the journey of creativity
Ep. 046 :: Brendan Bradley
On this episode of MYFI I’m joined by actor extraordinaire Brendan Bailey. Brendan has been in over 100 TV shows, films, and commercials. He’s also a high credited voice actor and performance capture artist who’s worked with Marvel, the Resident Evil franchise, and more. Jump in the conversation as we talk about Brendan’s time on the front lines of the writer’s strike as a strike captain for SAG-AFTRA, the importance of creative community, and more!
MY⚡️FI Blog
monthly blog for creatives and creative leaders
Max McNown Videos
This month on the blog I share about a day shooting 9 music videos in one freezing cold day for rising country artist, Max McNown. Check out the blog by clicking here.