Musicians can make money in a variety of different ways: music sales, live shows, selling merchandise. Making money is great, but you also have to know how to manage it. You don’t want to lose your earnings because of poor financial decisions. Here are 4 simple tips to help you organize your finances
Open A Separate Bank Account: Set up a bank account specifically for your music. The last thing you want to do is mix your personal and music incomes. Any money you make from your music, deposit into this bank account. This will allow you to keep track of how much money you have available at any given time.
Save As Much As Possible: Expenses are inevitable. You have to pay your bandmates, or you may have to pay to use a studio. However, always save as much as possible. Set some money aside for the band. This money can then be used to cover future expenses.
Make Spreadsheets: Spreadsheets are a simple way of keeping track of your income and expenses. You can divide your spreadsheets into categories such as “Touring Expenses,” where you include all the expenses you make while on tour. Spreadsheets give you a more detailed view of how much money you make and spend.
Always Plan Ahead: Take the time to budget your expenses beforehand. By planning ahead, you will have a better idea of how much money you’re going to need. This also prevents unnecessary expenses.
Managing your money doesn’t have to be difficult. Following these simple tips will help you keep better track of your hard earned money.
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Luis Valle is an aspiring journalist. His passions include music, fashion, food, and collecting sneakers. He also enjoys traveling and exploring different parts of the world. The motto he lives by is this: “You only live once but if you do it right, once is enough”