Pursuing a career within the creative industry takes a great deal of courage and determination.
Not only are you met with fierce competition at every corner, but you also have to navigate the complicated world of temporary contracts and commissions while dealing with a lot of scrutiny from those around you.
As a result, you may find that you are in a relatively tricky financial situation in the new year.
With that in mind, in this collaborative/contributed post, here are some top tips that you can use to get better control over your finances in 2022:
Look into loans and credit cards.
Many of us are often unwilling to take out loans as they seem to be a temporary resolution to financial woes. However, they can also be incredibly instrumental in helping you to achieve financial security by providing you with immediate support. For example, SBA loans, like the PPP and the EIDL, given out during the pandemic, has made it possible for businesses to continue to thrive. Those loans sometimes have such low interest rates (1-2%) that it's actually smart to be able to leverage your money to make more! Furthermore, companies such as compare credit may be a quick way to compare different loans and even credit cards to find out which option may be best for you.
Keep track of all of your invoices.
Working in the creative industries often means that you have to learn how to deal with your finances as a freelancer. For example, you often have to manage your own taxes. To make this as straightforward as possible come tax season, you should ensure you keep a record of every invoice, payment, and receipt. This way, you won't find yourself desperately looking for documents at the last minute.
Keep track of your expenses and understand your spending limits.
One of the great joys of working in the creative industry is that every month is different, especially if you move onto a different project. However, this also means that your income can vary widely between months. As a result, and to avoid overspending on the good months, you should keep track of your expenses and set some limits to ensure that you stick to it. Any extra money you earn can then be put into a savings account.
Put your savings into a separate account.
Setting up a savings account is another great way to get in control of your finances. This is because you are less likely to withdraw money from there unless you really need it. As a result, you'll find it much easier to grow your savings. Also, having savings ensures that when you have a leaner month or six or 12, that you are going to be OK.
Find some ways to supplement your income.
Whether you're looking to financially recover from the festive period, or would like to have a bit more cash to support yourself, then you should also look for some ways to boost your income. For example, you could work as an online tutor, sharing your creative knowledge with others who would like to pursue a career within your chosen industry. Alternatively, you could participate in paid focus groups, where you can earn extra cash simply by giving your opinion on a certain topic. (Recently, a member client told me that she was making about $1000 every month from focus groups!)
Hope this all helps! Happy New Year!
May 2022 be filled with health, wealth and happiness!