Being a Creative in any part of the world tough. Trying to make a living off of your craft is a daunting task. Let's not even get started on the finances. A lot of us freelancers sacrifice money for the art. To be completely honest, a lot of us creatives don't even know how to manage the money we get from our projects! I was invited to attend the JP Morgan CHASE Literacy event for Hispanic Influencers and media hosted by Brittney Castro, Founder of Financially Wise Women and CHASE Financial Education Ambassador. I managed to grab a quick interview and she gave me three tips that any creative can apply to their financial life.
Tip Number 1: Create a budget
"First thing, figure out how much money you need to make. Calculate your magic number for every month and every year. So, when you are creative and you're freelance; You need to get very clear on what that number is and the way you figure this out is looking at your budget. What are your bills? What amount you want to start saving for your goals? Once you figure that out, then you know how much you need for your work. Let’s say you need 3k a month. There can be a month where you get 6k, in your head, you should think “ok this is 2 months worth of my income” so those months when it is slow and you don’t make any money, you have that money in the bank ready to use for bills."
Tip Number 2. Have Separate Accounts.
"Another tip for the creative that is self employed, separate your business accounts and personal accounts. You have to think of your business as a business. So have a business checking account and you run your business expenses from there and then you transfer over that amount you need, like the 3k from the business to the personal account every month."
Tip Number 3. Save Whatever You Can
"I would say is put some money away on your savings and this is 'like out of sight out of mind' savings account. There is Ally bank, Capital One 360. These are high yield institutions, where your money is earning a little bit more. You want to put your savings some where else so you don’t see it on a regular basis. Automatic savings is the best thing. Just setting up so it's like 100 dollars a month going into the savings just like a bill but Digit helps too you know whatever works."
There you have it folks. It really is pretty simple. All you need is discipline and business savvy. Pretty soon, Creatives all over the world will be like...
MAKE IT RAIN ON DEM HOES!
Bonus: One savings app that really helped me out was Digit. How it works is that it studies your spending habits and saves accordingly. That Starbucks habit you have? It saves according to that. Some days it takes 5 cents into the savings, some days it take 5 dollars. For more info on how it works click here. FYI: I get some SHMONEY for everybody who joins. Help a bitch out.
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