Just as with any business venture, building a successful YouTube channel requires investments of both your time and your money. Though uploading to the site is free, many vloggers spend their own money on props, equipment, and other supplies that help them create bigger and better content.
Here’s how you can create a budget that supports your content creation.
1. Determine your average monthly income.
The amount of money you make from your YouTube videos is based on the number of videos you upload and how many viewers each one gets. Because of the way the AdSense system works, your income may vary from month to month. You may also have another source of income from a day job, merchandise sales, or sponsorships.
You can determine your average monthly income by adding up how much money you’ve made over the past year and dividing it by twelve. For example, if you made about $1,000 a month on your videos, $50,000 from your day job, and did a $500 sponsorship, then your total income for the year was about $62,500. That’s an average monthly income of $5,208.33.
It’s important to determine your average monthly income because this number will become the basis of your new budget. Though you may make more money some months and less during others, you’ll be able to work within your means.
2. Categorize all of your budget needs.
Now it’s time to bust out the spreadsheets. Make a list of everything that you spend money on each month. Write out the amount of each bill. Subtract your monthly bill payments from your average monthly income. Then, divide the remaining balance into categories such as food, gas, and entertainment.
This is where you’ll have to start making priorities and sacrifices. For example, if you regularly spend $50 going to the movies every month, you may determine that you need to scale back to $20 so that you can have more gas money for your travel vlogs or more food money to support your baking videos.
You can easily start creating your budget online with a GoogleDocs spreadsheet. This video will show you how.
3. Be realistic when you assign a percentage of your budget specifically to your content creation.
Be reasonable when it comes to choosing how much of your monthly income can be dedicated to supporting your content creation. Don’t cut back on necessities just so you can make flashy videos. By working within your means, you’ll be able to work your way up.
For example, if you’re a beauty vlogger, you may want to review the latest Kylie Lip Kits. However, at $29 each, purchasing the entire new collection may set you back too much to pay your bills. Instead, you could choose one new color to review or go for a cheaper alternative, such as Colourpop’s $6 liquid lipsticks, instead.
Many viewers appreciate videos that were created on a budget. A lot of them are looking for videos that will help them save money, like Laura Lee’s video about affordable makeup did.
4. Create a plan to save up for new equipment.
Just because you’re working on a budget doesn’t mean that you can’t make any expensive purchases. If there’s a new product or piece of equipment that you want for your videos, then it’s time to start saving up. Set aside a certain amount of money every month until you have enough to make the purchase without having to put it on credit.
To determine how much you should save every month, first decide what you want and how soon you want it. Let’s say you want to order a $140 ring light, and you want it in three months. Next, you’ll divide the price by the number of months you’re going to save up for it. You’ll need to save about $47 a month for that ring light. If that’s too much, you can extend the amount of time you plan to save and divide again. For example, if you were going to buy the ring light in six months, then you’d only need to set aside about $23 a month.
This video will give you some practical tips on training yourself to start saving money.
5. Invest in video promotion.
In order to make more money with your videos, you’ll also need to focus on growing your channel. You can work with into your budget by investing in video promotion.
There are plenty of video promotion services available online. However, you should do your research to determine which ones are really worth your money. The best services will work with you to create a marketing plan that works for you and your budget.
Before investing your money in a video promotion service, check out the company’s online reviews. Seeing how the service worked for other content creators will help you make the decision that’s right for you.
Creating a budget will help you grow your channel over time. Make a plan to spend wisely, save up for equipment purchases, and invest in video promotion.
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Kristen Harris enjoys listening to a wide range of music, from Taylor Swift to, on occasion, Celtic instrumental. She also spends her time writing, reading, and baking.