It was about 10 years ago that I reached a breaking point in terms of money. I had lots of debt, an almost empty bank account, and just getting the mail would bring me to tears because of all the bills I had just received and I wasn’t sure how to pay. If something didn’t shift, I was pretty certain that my pursuit of an acting career was over, not to mention the fact that I’d probably have to move back to NJ to live with Mom and Dad…
Fast forward 10 years, and every single time I begin working with a new client, the biggest thing I want them to know is that I understand how they’re feeling. It’s pretty rare to find someone in a situation much worse than mine was. The work and solutions I teach are not empty theories. I know first hand the financial journey you are on as a creative soul, and my mission is to give you the tools that will work for you and your artistic lifestyle.
The first question most artists ask when feeling that sense of financial overwhelm is: Where do I start? And the answer, while not always easy, IS simple. You start at the beginning. The very first step to meeting your financial goals is clearly defining where you are right now. This anchors your direction and allows you to easily gauge your progress.
There are two layers to creating that clear picture of your starting point. The first is the determination of your Net Worth. To arrive at this figure simply add up the current dollar value of your Assets (“what you own,” such as a car, home, investments, savings and cash accounts, jewelry, etc.), and subtract your Liabilities (“what you owe,” such as the car loan or mortgage remainder, students loans, credit card debt, etc.).
The next layer, factoring your Average Monthly Profit & Loss (also referred to as monthly Cashflow, or P&L), will require more time and effort, but is a critical element in understanding your financial baseline. In basic terms, your P&L equals your Income minus Expenses, or the precise amount you earn each month — from creative work, residuals, “job” jobs and/or side businesses — minus what you spend. As an artist, how do you pinpoint your P&L when income arrives from a variety of sources at random intervals and one month may differ wildly from another? The solution is to average our earnings and spending habits over a six month period. This will capture such variations and reflect all those “special, unforeseen” costs that don’t surface every month. Subtract the total of your average expenses from your average income to figure out your P&L. If this number is positive, you’re earning more than you’re spending; if it’s negative, you’re “in the red.” Your Average P&L, most accurately predicts your money lifestyle in all months.
Your success depends on the clarity of your P&L and Net Worth numbers. Armed with your true starting point you’ll be able to set concrete goals, determine milestones, and map a course for the future.
If you can use some clear guidance and accountability to take this critical step towards financial stability – check out Artist’s Prosperity 101. This is a powerful program that will guide you through each element of defining your personal financial starting point. In just 4 weeks you can have the control that comes from clarity – positioning you to stop surviving and start thriving!
When I started this process – more than anything I wanted clear direction. “Just show me exactly what to do.” Can you relate? Well, Artist’s Prosperity 101 does just that. You’ll get all the information you need in simple, manageable chunks so you can do what you need to do but never get overwhelmed.