Though there are a lot of suggestions for you on how to make money, it is important for you to learn how to manage the money you earned.
Only a good sense of finance can save you from money going down the drain due to impulse buys, unregulated saving, and overspending on tours and projects. Since you will have to manage your finances all alone as an indie artist, here are the tips to the right budgeting and financial planning.
Find a secure place to put the money you get from a live performance. This is important to see that the money remains safe as well as is accounted for. Set up a separate bank account for your music income and deposit the money you get from your performances. This will bring down the urge to spend all the money before paying the band’s expenses. Pay the band members on a regular schedule either weekly or fortnightly or monthly.
Cultivate the habit of saving
Though we all expect to earn as much as possible, most of us do not focus on the importance of saving. Even if it is a small percentage of your earning, a regular habit to save from every penny you make can make a big difference to decide your future success. For instance, when you look forward to recording a new song or go on a tour, your saving will come to your support.
Work with spreadsheets
Use spreadsheets to keep track of your income and expenses. As an indie musician, you might only have an irregular income. Often this can depend on the season. Hence a spreadsheet can help you predict what is to come. When you have maintained the income and expenses over a few years, you will know whether you are progressing year on year.
Plan the budget for every venture
Before producing something new, it is important to budget all your expenses in advance. For instance, list out all the possible categories of expenses like studio costs, equipment rentals, musician fees, engineer fees, photography costs and distribution expenses. Only if you go with a proper budget, you will have an idea of how much you will need for the project. When you tend to go over the budget, learn how to cut out the avoidable expenses to stay within limits. This is an important strategy for success.