From the Mailbag

Hi Miata,

Should I set up a separate business account for the small amount I earn from my craft? It seems like overkill because I make so little.

– Jasmine

Dear Jasmine,

Absolutely.

Keeping craft money separate from household funds is important for many reasons. Here are a few:

  • Separate funds create a scorecard. Many artists want to track how they’re performing financially from their art. By keeping it separate, you’ll have a gauge of how far you’ve come. You’ll also know how far you need to go, which can be an important motivator.
  • Supplies for your craft should come from craft income whenever possible. This helps you become a better business person and make decisions based on profits and losses. By keeping purchases in line with income you’ll avoid investing hard-won money into a “hobby” and remember to make sound decisions whenever possible.

If the dollars you earn are very small, and you’re also not spending much money on your craft, you can start by setting up a personal savings account with your current bank. You won’t need a business account until you have a steady stream of income and/or expenses.

Check out Artist’s Prosperity 101 for clear and simple instruction on the financial separation of your business life from your personal life. AND, don’t forget to register for  The Power of Prosperity – a completely FREE teleseminar/webcast coming up on Thursday, July 21st. I’ll address your question in more detail and share lots of tips to help you powerfully manage your money as a Creative Soul!

2011-07-07T14:38:52+00:00