Personal financial management isn’t something simple for everyone. This will happen to almost everyone who has never done any financial management course. In this page, you will be shown how to management your personal finances to ensure that your money will be well spend and you won’t go broke. It’s important to note that personal financial management is something that can best be achieved when you know the best tips. With these guidelines, you will avoid cases of financial misuse and enjoy saving a lot of your money. Knowing how to do financial management is a great thing that will enable you live comfortably. Check the best tips below.
Every time you earn money from your work, you should remember to follow the 50/30/20 rule. This is the ratio that guides how you should divide your money that you have earned. Thus every time you get paid from a gig, you should create a pay stub and ensure that you divide the money well. The 50% of your pay should take care of your needs that include rent, bills, and food. The second part, the 30%, refers to the amount that you will use on what you want. This will include such things as new musical equipment, event clothes, or video games. The other 20% that has remained should be put away for savings. This is the money that will stay in your account should you have needs that will require you to touch your savings.
All musicians get their money from different plays that they perform often. Your pay will be on a day to day basis and this will prevent the clarity of the big picture in your sight. Hence you should get to discover more on how to manage your finances well and avoid problems. It’s important that you use a spreadsheet and make your budget well laid down. This will enable you to see how much money you will need to pay off for bills. This will be useful since gigs often vary in pay.
Every musician will make money that will vary every money. Some months come with huge pays and others will be low. You should ensure that you make the best budget that will enable you take care of low pay months by using the high pay months well. When you use this spreadsheet as you will view here, it will be easy to do that. You should also ensure that you get ahead on your expenses. It’s wise to plan yourself in a way that you can pay for your bills the following month even if you won’t do work.