14 Tips to start a budget

For artists to efficiently manage their income and costs and advance in their careers, a budget is a need. A budget enables artists to understand their running costs, plan out their spending, and predict their expenses and income over a specific time period. This enables them to keep tabs on their performance and anticipate any operational adjustments. Furthermore, artists may stay within their budget by being frugal and conserving money in areas like recording space.

1. Setting up a budget may help artists keep track of their earnings and outgoing costs, as well as ensure that they have enough money set aside to pay for their essential requirements and debts.

2. To save for the future: A budget may assist musicians in setting aside funds for both immediate and long-term objectives, including the purchase of new gear, debt repayment, and retirement planning.

3. Musicians might utilize a budget to set aside funds for possibilities for professional development, such as taking classes or spending money on marketing and promotion.

4. To prepare for unforeseen costs: By setting aside money in their budgets for unforeseen costs like car repairs or medical bills, artists may relieve tension and safeguard themselves against difficulty.

A budget is a crucial tool for musicians to manage their finances, make informed decisions about how to allocate their resources, and achieve their financial goals.

Here are some suggestions for ways that a musician can start a budget in 2023:

1. Determine your income sources: Make a list of all the ways you earn money as a musician, including gig fees, merchandise sales, streaming income, and any other sources.

2. Set financial goals: Decide what you want to save for, such as a new instrument or recording equipment. Having specific goals in mind will help you stay motivated and focused.

3. With the help of tools like tax and budget calculators, begin by developing a fundamental understanding of finance.

4. Since musicians sometimes concentrate on performance jobs and instruction as their only sources of money, have your professional goals in front of you and make assumptions about your revenue streams.

5. Make a budget that includes your living and career-related costs for a specified period of time (a month, a quarter, or a year), and establish an annual income target based on prior experience and best estimations.

6. Making sure that one's finances are in order may bring stability and peace of mind, allowing one's creativity to flow more freely and giving them the means to continue practicing their trade as musicians.

7. Create a budget: Use your income and expenses to create a budget that allows you to save money while still meeting your basic needs.

8. Cut unnecessary expenses: Look for areas where you can reduce your spending, such as by cancelling subscriptions or cutting back on dining out.

   Mint: A comprehensive budgeting app that tracks all spending, including bills and investments.

   PocketGuard: An app that helps users keep track of their spending and budget by categorizing transactions.

   Rocket Money Join over 3.4 million members who trust Rocket Money to save more, spend less & see everything in the #1, all-in-one personal finance app

   Goodbudget: A personal finance app perfect for budget planning, debt tracking, and money management. Share a budget with sync across multiple phones (and the web!).

   YNAB (You Need A Budget): A proven method and budgeting app that gives you real results. On average, new budgeters save $600 in their first two months.

   Wally: A budgeting app that helps users track their spending, income, and budget in real-time.

   Digit: An app that helps users save money by automatically transferring small amounts of money into a savings account.

   Qapital: A budgeting app that helps users save money by setting goals and automatically transferring funds into a savings account based on spending habits.

9. Increase your income: Consider ways to increase your income, such as by taking on additional gigs or selling more merchandise.

10. Use budgeting tools: There are many online tools and apps that can help you track your spending and create a budget.

    • According to a Forbes article [1], YNAB (You Need A Budget) 4.2 is the best for achieving financial goals. It costs $14.99/month or $99/year after a free trial period of 34 days. It has over 52,200 ratings.

      • A NerdWallet article [2] recommends the following budgeting apps:

        • EveryDollar, for simple zero-based budgeting

        • Personal Capital, for tracking wealth and spending

        • PocketGuard, for a simplified budgeting snapshot

        • Honeydue, for budgeting with a partner

        • Fudget

      • A CNBC article [3] suggests the following best free budgeting tools:

        • Best free spreadsheet for anyone: Google Sheets

        • Best overall free smartphone app: Mint

        • Best free smartphone app for beginners: Goodbudget

11. Save money on taxes: Make sure you're taking advantage of all available tax deductions, such as those for business expenses.

12. Build an emergency fund: Set aside a small amount of money each month in case of unexpected expenses, such as a broken instrument or car repair.

13. Seek financial advice: If you're having trouble creating a budget or reaching your financial goals, consider seeking advice from a financial professional.

14. Stay disciplined: Stick to your budget and make sure to save money each month. It may be difficult at times, but the long-term benefits are worth it.