Embarking on a journey in the arts is not just difficult; it can be a cruel endeavour. However, we must examine whether the problem lies within the sectors where artists find themselves or within the artists themselves.
Financial Empowerment
For many artists, fame is the ultimate goal, often without considering proper research into their chosen arts and sectors before pursuing it. This raises concerns about ignorance, particularly in an era where technology allows us to thoroughly understand the pros and cons before taking action.
Furthermore, financial studies are often neglected in our education system, leaving many individuals, including artists, ill-equipped in terms of financial empowerment. As a result, many artists dream of living an expensive lifestyle they cannot afford. It begs the question: Do we have enough platforms to teach artists about financial empowerment while pursuing their careers and leading honest lives?
Being financially empowered is essential to avoid leaving nothing behind for our posterity despite having a name or being in the limelight. Let us explore the main factors that could help artists avoid the mistakes often made. Financial empowerment encompasses the following elements:
- Budgeting: Learning to budget is crucial. For instance, as an artist relying on gigs and brand collaborations without a fixed monthly salary, it is wiser to budget for a car or house instead of renting an apartment that costs as much as you earn in a month. Buying a car on a monthly payment plan can be risky, given the uncertain nature of income.
- Saving: Contrary to the belief that artists don’t make money, they can earn substantial amounts, particularly through gigs and brand partnerships. Leading an honest life, making sacrifices, and learning to save can help artists achieve more than just their artistic pursuits.
- Debt management: In the early stages of a career, appearance often seems more important than talent. Many artists create accounts to buy new clothes or take out loans to build a team to support their projects. However, it is crucial to ensure that every earned dollar is used to pay off debts, even if it requires regular payments over time. Proper debt management minimises the risk of dealing with debt collectors or carrying the burden of unpaid debts.
- Investments: Artists should consider making investments, especially in the current time and space. Numerous platforms provide opportunities for investment. While investments may take time to yield returns, they serve as long-term plans to eliminate poverty and secure a better future for one’s children. Investments enable artists to create the lifestyle they desire without resorting to loans, borrowing, or relying on others.
- Emergency funds: It is wise to save a specific amount from earnings in a designated account, such as a “rainy day” fund, which is what I named my emergency funding account. These funds can be used in emergencies, such as unexpected medical expenses or other urgent needs.
- Insurance plan: Insuring property, including houses and cars, is crucial to mitigate the risk of losing them in unforeseen circumstances.
- Retirement planning: Artists should have a retirement plan in place, although many neglect this aspect. It is essential to understand that artistry cannot last forever, and artists should find ways to navigate their art even after retirement. Treating art as a business allows artists to manage their finances more effectively, similar to how the corporate sector operates.
- Avoid unnecessary expenses: Living honestly includes being honest with your budget. It is acceptable to avoid expensive restaurants and opt for more affordable options. Artists who cannot cook can document their journey of learning to cook, sharing it with their fans. Those who possess cooking skills can showcase their expertise and even share family recipes. By doing so, artists not only save money but also teach their fans about saving and leading an honest life.
In closing, by educating ourselves about finances and becoming financially empowered, we can avoid burdening our families with debts and ensure a prosperous life for our children. By leaving a mark not only with our talent but also with financial stability, we can avoid dying broke.