Take Care of the Nickels and Dimes...
And the dollars take care of themselves
As an artist, you have to be a BETTER money manager than everyone else. Surprising? It shouldn't be. You know going into this profession that even at best, work is touch and go. Even the worlds' most employed actors or artists of any nature, spend a good amount of time being unemployed. What does that mean? It means it's time to get in the game of managing your money! Enoy these tips and come back often as we will keep adding to them!
Tip #1 is: Know exactly how much money is coming in, and exactly how much is going out.
-- Use the form below. Paste it into a word document and then make copies and USE IT! Also, if you have and iPhone, download the free app called "Spending Lite". As soon as you make or spend something, enter it. Keep very close tabs on your cashflow. It's one of the first things you have to do before big $$ starts coming to you. Click here to download our budget sheet! Happy number crunching!
Tip #2 is: Always shop around and look for the best deal online.
-- Nearly every website out there gives you the ability to compare prices of products you are searching for. Make sure that before you purchase anything that you sniff around for online coupon codes that will get you 10% off or free shipping or both! Also, a great site that allows you to compare millions of products, and earn cash back when you buy them, is www.TheThrivingShops.com. When shopping through that portal there is no limit to how much cash back you can earn, or how many coupons you can use. You can create an account for free and do all your shopping through there... access to over 35 million products so you can always find the best deals. Happy shopping and happy saving!
Tip #3 is: Without fail, pay yourself first.
-- We all think we can save and invest "on our own", but more often than not we forget to do so with each paycheck that comes in. No matter what the amount is, make sure you take a percentage of each paycheck and put it away immediately. The best way to do that, in our opinion, is to set up an automatic withdrawl from your primary account where you deposit your check into an online account such as Emigrant Direct or ING Direct. There are lots of them out there so you can choose whichever you like. The main point is to begin the process of managing every dollar you make, and the first thing to do in that process is to pay yourself first!
Tip #4 is: Increase your 401(k) contributions.
-- As part of the compromise to extend the Bush tax cuts, Social Security taxes have dropped to 4.2% from 6.2% for 2011. That means just about everyone who has a job will get a raise, starting this month! Huzzah! You could spend that money on new shoes, but here's another idea: Increase contributions to your 401(k) and start taking an active role in how it is allocated. Do a little research on the different investment options your financial institution has and make an educated decision with your money. You'll be glad you did!
Tip #5 is: Create a ROTH IRA as soon as possible.
-- Contributions to a ROTH IRA are taxed on the way in, and then tax free when you go to withdraw from that account years later. It only makes sense that you would pay, for example, 10% on $5000 going in, rather than 10% on 25,000 on the way out! Get involved and speak to a financial professional about what you want out of your investments and then make it happen! Remember, nobody will watch or care about your money as much as you will. Ever. Get in the game of investing as soon as possible, and if you are already in it, keep learning! Here's to having your money make you money 24 hours a day, 7 days a week!
Tip #6 is: Be your own transportation.
-- As the weather warms up (or even if it doesn't so much where you live) make an effort to either walk, bike, or roller blade to where you are going rather than driving, taking a bus, or riding the subway (for you New Yorkers!). You'll save a few dollars and get in great shape while you're at it! Over time, take the money you save in gas or fare cards and invest it in some sort of financial education for yourself like a book, or weekend seminar.
Tip #7 is: The squeaky wheel gets the grease.
-- What do we mean? Simple... if your cabel company or cell phone carrier screws up somehow, make some noise and get some free stuff!! It doesn't take a lot of effort to get a few bucks knocked off your next bill or a free month of HBO or Showtime as a courtesy. Hold other businesses to a high standard and hold yourself to one as well. If they are not making the grade to keep your business then you can always go elsewhere, and that is the last thing that they want.
Tip #8 is: Find a free checking account.
-- Having the wrong checking account can take hundreds of hard-earned dollars out of your pocket every year. The average interest-bearing checking account charges a monthly service fee of $13.04 and requires maintaining a balance of more than $3,800 at a near-zero rate of interest to avoid fees. Although large banks are jumping off the free-checking bandwagon, free checking accounts can still be found at smaller community banks, credit unions and online banks. Do a little leg work and it will save you a lot of headache down the road.
Tip #9 is: Get a high-yield savings account.
-- OK, maybe these days "high-yield savings account" is a contradiction in terms, but there are three requirements when looking for a place to put your rainy day fund. It must be liquid, meaning you can get to the money whenever you need it. It must be free of investment risk. And you must earn a return that preserves your buying power against the erosive effect of inflation. The top-yielding savings accounts and money market deposit accounts insured by the Federal Deposit Insurance Corp. meet all three of these requirements. And they can be obtained with little or no minimum deposit, and are available to consumers anywhere in the 50 states.
MORE $$ TIPS COMING SOON... CHECK BACK OFTEN!
