Musos in Poverty: Don’t Let Debt Destroy Your Band

  • By Josh
  • June 20, 2016
  • Comments Off on Musos in Poverty: Don’t Let Debt Destroy Your Band

According to a report that delved into the economic situation of musicians, artists and other creative professionals in Australia (film not included), a huge part of their number are living in extreme poverty. To barely get ends meet, 56 percent of the respondents had to juggle two jobs while 7 percent had to manage their time for their three jobs. Sadly, those who were not lucky enough to survive in the industry walk out from it or get disbanded. There are a lot of reasons why this happens: financial crisis, time constraints, limited gigs, lack of financial assistance and poor financial yield, among others. Based on the same report, 15 percent of the respondents had to hang on for at least three years before actually earning decently. On the process, they incur debts and lots of it.

Don’t let your arrears of the past several months (or years) destroy your band or discourage you from pursuing your career. It is time to manage your debt and seek debt help from professionals. Here are some tips on how you can at least prevent acquiring debts without compromising your music:

1. Run it like a business.

When you treat your band or your music like a business, you are serious to not let it go to waste. In doing so, you will make compromises. For example, you have an important personal plan for tomorrow but you were given an opportunity to play for an event that will be held on the same day Postpone your personal plan and go perform on the show. Making decisions that is good for the business is the sine qua non in running a business.

2. Recognise your financial challenges.

Among the major anxieties of musicians are credit card debt, overspending and dreading about not having enough money. To help you get on with it, ask for help on how you can save for retirement, make investments or manage your finances in general.

3. Get a hold of your credit status.

In case that you need to apply for loan for emergency expenses or renting a new place, knowing your credit status will help you make a wise decision.

4. Monitor your expenses.

If you are having a hard time managing your debt, try to monitor your expenses. Be aware of the cash that flows in and out of your pocket. Get rid of the things that you can live off of it. The money you’ll get to save from this should be used in paying off your debts.

5. Come up with a doable budget plan.

If you really don’t want to go broke, create an attainable budget plan. Don’t worry; it’s not as overwhelming as you think.