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Hi Everyone!
I hope
this newsletter finds you well and happy.
Now
that I have a daughter in kindergarten, my life has taken on much
more of a "school" schedule. It's amazing -- all the end of
year events, projects, picnics and parties. I often laugh
that my six year old has a much busier social schedule than I do!
We've
been hard at work at Abundance Bound to bring you all of the tools
you need to successfully balance your artistic life with a desire
to take control of your finances. We're all so busy!
You've asked us for more ways you can do the necessary work on
your financial foundation -- but in your own time and on your own
schedule.
I'm so
excited to announce that in the next couple of weeks, we'll be
launching The Artists' Prosperity Home Study System. We're
calling it a "Boot Camp in a Box." In it you'll find over 4
hours worth of audio recordings, written guides and simple
worksheets that will guide you powerfully through the steps you
need to take to thrive financially. Keep an eye out for an
e-mail with more information.
In the
meantime, I wanted to refocus on some of the critical basics and
that starts with the key principles presented in this month's
article.
Until
next time -- to your prosperity!
Miata
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You're an artist. But as an artist, you're also running a
business. Or is it a hobby? Do you know the
difference? Think about what makes a business a business.
Think of how a big company runs things. They have a business
bank account and business credit cards, they keep records of all
business expenses and sales, and they know when they have made a
profit and how much.
You need to ask yourself, do
you run your business like this? If the answer is no, then
you're not running a business, you're merely engaging in a hobby,
and it may be an expensive one. You might be saying, "But
I'm no accountant." True. However, as challenging as
it may seem initially, you can absolutely learn to keep proper
track of your business finances.
The absolute most important
thing to do is to separate all your personal income and expenses
from your business income and expenses. You would never see
the CEO of a big company go out and buy printing supplies from his
or her personal account and you shouldn't do this either.
This means you need to have a separate bank account for your
business. If you don't, then all your income and expenses
are mixed together and it's far harder to keep track of
everything.
Once you've established
separate accounts, place your personal earnings (from your day
job, such as waiting tables, office work, substitute teaching,
etc.) in your personal account and put your business earnings
(acting jobs, work sold to a publisher or at an art exhibition,
etc.) in your business bank account. Likewise, pay for all
of your personal expenses (rent, groceries, clothes, vacations,
etc.) out of your personal account and all of your business
expenses (acting or art classes, head shots, supplies, etc.) from
your business account.
This is simple, but not
necessarily easy. It will require a shift from how you're
accustomed to doing things now. You may be saying, "STOP!
I don't make enough money yet from my business to pay for all of
my business expenses." If this is the case, simply make
loans as necessary from your personal account to your business
account and be sure to keep records of those loans. When
your business becomes profitable, it can pay you back.
You should also have a separate
business credit card (even if the card is in your personal name).
Charge personal items to your personal credit card (and hopefully
pay off the balance every month) and charge business expenses to
the card that you've designated as your business credit card.
This way, if you're carrying a balance on your business credit
card, then the interest will be tax deductible. This isn't
possible if there's even one personal expense on the card.
Now, what about those expenses
that cross the line -- a portion is personal and the rest
business? An example might be your automobile expenses or
some of your household expenses if you work from home. For
these items, I suggest paying for them from your personal account
BUT keep very clear records. Have a small book or log in
your car to record business mileage. Keep all your household
bills (mortgage/rent, phone, utilities, etc.) filed away so that
you can use them at tax time to determine what percentage you are
able to write off as a business expense.
There are three reasons why
it's important to follow these suggestions:
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If you don't treat your
business as a business, you'll never make a business income.
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If you don't keep appropriate records and you're audited, the
IRS may classify your business as a hobby. This could mean
loss of tax deductions and
potential penalties.
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You'll be easily able to track the progress of your business,
determining when you've become profitable. This allows you
to make any necessary adjustments and corrections along the way.
Have faith in yourself.
You can do this. Taking these steps ensures you are laying
the proper foundation that will allow your business to thrive.
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Need some
help and support in clearly assessing your current financial
situation and developing a strong plan for the future?
What I
recommend to all artists is that you start with our Free
TeleSeminar/Webcast:
The Power of Prosperity
If
you're an artist who is tired of always struggling financially,
join us for this 75-minute FREE class where you will gain an
understanding of the steps that will allow you to take control of
your money. Learn about Abundance Bound and the ways we will
support you on your journey towards financial stability.
*** Please
register even if you are unable to attend the call live. We will
send a recording of the seminar to your email address that you
can listen to at your convenience. ***
Sign up
here
Then consider one of the following programs:
Monthly Money Management for
Artists
With
this program, twice each month you'll receive a 30-minute audio
recording designed to give you specific tips and tools that will
allow you to develop the financial skills critical to your life as
an artist. Every month, we will focus on a particular topic of
personal finance - from organization, to passive income
generation, to investing - and give PRACTICAL, EASY TO APPLY
advice on that subject: the kind of thing that you can put into
action in your life right away!
Link
here for complete details
If you want
more individualized guidance you're ready for:
The Artists' Prosperity Boot Camp
The
"Artists' Prosperity Boot Camp" doesn't just dump tons of
information on you, putting you into complete "overload."
This is a
10-week intensive program (taught by tele-seminar), where, with
the help of a highly-skilled coach, participants learn AND
implement each step of the Artists' Prosperity System. Students
will get financially organized, improve their money mindset,
create debt plans, start developing passive income, and much more!
Link here for more
info including graduate testimonials
For artists
who want the accelerated growth that comes with extremely
personalized attention:
Artists' Prosperity Boot Camp ELITE
We've taken
our popular 10-week Boot Camp program and added weekly private
coaching session - during which participants receive one-on-one
support in the achievement of personal financial goals. In
addition to learning and implementing each step of the Artists'
Prosperity System, students will get extremely "hands on" guidance
on all of their financial projects, such as business building,
debt management, passive income generation and investment
education.
Limited to
only 6 students per class!
Details
here
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©2008
Miata Edoga, All rights reserved. You are free to use
material from the Power of Prosperity E-Zine in whole or in part,
as long as you include complete attribution, including live web
site link. Please also notify me where the material will
appear. The attribution should read:
"By Miata Edoga of Abundance
Bound. Please visit Miata's website at www.abundancebound.com for
additional articles and financial tips for actors, artists &
creative professionals." (Make sure the link is live if placed in
an E-Zine or in a website.)
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TO SUBSCRIBE FREE: Just
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Simple Steps to Take Control of Your Money" and our free special report, "51 Ways to Achieve Prosperity."
All the
best,
Miata
Edoga - Abundance Bound
Financial
Education for Actors, Artists & Creative Professionals
P.O. Box 46517
Los Angeles, CA 90046
800-768-0281
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