Hi there. This is Jacq from Authentic Artists. I hope you’re well. I’m going to talk about money today and I’ve done a couple of videos on money before and a couple of blogs and when I’m working with my clients, I invariably find that this is a really difficult topic for most people, especially creatives.
There’s a lot going on about it. I’ve taught before about limiting beliefs, and I’ve talked about all kinds of issues we have around money, deservedness around money, fear of failure, fear of success, fear of everything in between. It’s a really difficult topic. So, I thought for this video I would try and give you some practical advice and it’s something I go into on my AMPS course. So I’ve done webinars and kind of a mini course, of live sessions with me, called the AMPS, which is covering the four areas that you need to be able to run your business within music.
The M in AMPS is for money and music. And when you rearrange AMPS, it becomes your maps. And the thing you start with on your maps is the M for money and that’s because you need to figure out, initially, you know, where are you right now in terms of your incomings? I mean, obviously right now we’re in the middle of the lockdown situation, so everybody’s kind of in a difficult position, or a lot of people are.
But it’s also a good time to take stock and figure out, well, okay, even if things have gone sort of awry now, where were you before and what were your plans and what are you going to do when you come out of lockdown? So how are you going to get back on plan, assuming you have a plan.
There’s a couple of things I’m going to share with you. So, the first one is, I’ve talked before about doing a budget, and actually you need to do two. You need a budget for your business, and you need a budget for your personal expenditure and income and within that. So yeah, if you’ve not done a budget you need to do a budget. And you need to do two because first of all, you’ve got to figure out what’s coming through the business and then you pay yourself out of that money. And then you manage your money within your personal expenditure and you’ve got to live within your means. So, doing a budget is the very first thing you need to do to understand that situation and get your head out of the sand and figure it out and face it, even if it’s an ugly picture, which it can be. That’s going to be something that’s really critical. This is a non-negotiable, you must do this so really consider this because if you’re not doing that and you’re not getting the money that you need to run your life and run your business and invest in things like making music, cause it, it costs money to make more music.
You’ve got all kinds of considerations. You know, when you get, you get the writing part done, that’s fine. You’ve got to live while you’re doing that. Then you’ve got to get demos done on project produce stuff and get mastered and that. There’s the social media, there’s marketing, there’s all kinds of stuff in your business, so you have to be able to fund that.
So, two budgets, one for your business and in that you need separate bank accounts for different things for your revenue coming in, which you’re going to need to maximize. And then out of that, you don’t, you don’t earn that money you put some of it aside for tax and for contingencies. So, you need to think about it as a business owner.
That’s your gross income and out of that are your costs and tax is one of your costs, so you need to put that away on one side so you’d never have to worry about paying a tax bill. If at the end of the year you don’t owe as much tax as you have saved for, bonus day! You can take that money out and use it, pay yourself, but you need to budget for those things.
So have separate bank accounts and definitely get in the habit of taking out of the money you’re earning that you pay yourself every month that you were then saving some of that money. So initially, if you’re not earning enough to cover all the bills, you’re not going to be able to do a lot. But even if you just save one pound a month, it starts to build up the money muscles you absolutely have to use and build and train in order to hold more money. The example here is, we all have heard the stories about lottery winners. Usually the people who have never had money or not used to handling money and holding money. Those are the people, the lottery winners, that lose all of it within a year.
And you think, how can that possibly happen? Because you think winning the lottery, you will have enough money forever. That’s not how money works. Money is energy, and we need to be able to hold that money and understand the way money works and the way we work subconsciously with it. I go into a whole bunch of that in my training and my coaching.
So, you need to be able to start from where you’re at and then build habits that get you into the habit of understanding your money, where it’s coming, where it’s going, and how you hold onto some of it. Then you need to figure out what are the targets that you need to fix any deficit that you have in your budget.
So, if you’re not earning enough and there’s more going out, how do you address that? Or if you are earning enough, how do you get to the next level? How do you build up your targets, your goals, your vision of what you want to create so that you can do more, make a bigger contribution, give some away.
Invest some in in your family. You don’t pay down a mortgage or you know, save for a place or whatever it is, your particular goals are. We can put plans in place to get to that, and that’s the very last thing, you know, based on that information, which is really just data, it’s just information about what’s the situation.
Then you can make a plan as to what you want next. So this is really critically important, it’s something I encourage you to do and if you need any support or help with that, you know what to do, let me know. Good luck, take care.
This is a transcript from my original video which can be viewed at: https://youtu.be/xKfxRlaehwM