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These posts cover broad principles, resources and ideas relating to personal finance for creatives.

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Student budget spreadsheet: how to make your loan last

Photo by Amol Tyagi on Unsplash

It can be tricky to get a clear picture of your finances when you’re living away from home for the first time. This student budget spreadsheet will help you to make your student loan last and see where the money goes. It will help you for life…

I’ve spent the past few weeks talking to several hundred students on creative courses from locations all around the UK on the topic of how to make your loan last.

During the workshops, several students made the comment that they wish loans were paid-out in a more piecemeal fashion – a regular drip-feed on a weekly or monthly basis.

I think this is a fairly savvy point, which probably would help more students avoid the (inevitably) bad financial decisions we all make at some point during study. However, part of the point of higher-education is equipping you with the skills for life and, chief among them, critical thought and self-reflection.

In this sense, the loan is one of many, sometimes painful, learning curves that are part of that experience. It also strikes me that it’s not a bad rehearsal for life in the creative industries.

A dry run

Most creative workers are freelancers and most of us get paid in occasional lump sums, rather than the more steady incomes that would enable us to emulate a salary.

In this sense, making the three payments of a student loan last across the year, while topping it up with other forms of income (drawing on savings, part-time work, frantically selling your things etc.) is a pretty good emulation of the cash-flow peaks and troughs we encounter in creative work.

I’ve been using a student budget spreadsheet to illustrate to students how they might spread their loan out and get some clarity on their financial position throughout the year. I thought I would share it on here, too, along with a few pointers on how to use it, which is really the important bit.

Get the Creative Money student budget spreadsheet

(Opens as a Google spreadsheet)

Please note: You won’t be able to edit the master sheet on this link, so it’s important that you save a copy to your own Google account or download it for use with Excel before you try to edit it.

You’ll note there are three tabs: Spreading your loan, What have I got? and What do I need?

Step 1: Enter your annual maintenance loan

Start on the first tab (Spreading your loan) and enter your annual loan amount where indicated.

Student budget spreadsheet: your maintenance loan

When you enter this figure, the sheet does a very simple calculation to split the payment into three, indicating how much you will receive in payment each term.

It also divides your annual figure equally across either 9 or 12 months (depending on your selection in Box B7).

Choose 9 months if you expect to be relatively ‘bill-less’ over the summer period – for instance, you know you’re heading home and won’t need to supplement your income at that point.

If you’re planning on renting throughout summer, then go for 12.

The amount you have to contribute towards your living costs each month is then displayed in row 8: ‘Maintanence loan for term time (Oct-June)’.

This will prove useful later.

Step 2: Figure out what you have

Next, head to the What have I got? tab. This is where you take a snapshot of your financial position. This is best done once a month at the same time each month, e.g. the first of the month.

Student budget spreadsheet: your assets

Log anything you’re holding in your savings accounts, in cash, or other investments and things that hold some worth and could be converted to cash.

(As a rule, avoid listing your ‘stuff’, as selling your guitar etc. is usually a last resort).

Below you can list any debts you might hold, perhaps your overdraft, credit card and store credit.

Student budget spreadsheet: your debts

The sheet then deducts your assets (what you have) from your liabilities (debts/what you owe) and tells you what’s left.

This figure is known as your net worth, but is probably best thought of as ‘What have I got?’ hence the title…

Step 3: Enter your income and expenses (predict then review)

Now move to the What do I need? tab. This is where you capture the movement of your money in and out of your accounts for the month: your cash-flow.

Do not comb your statements line-by-line to do this. Use a budgeting app, which does the legwork for you and will automate the monthly totals for expense categories.

Your fixed expenses
Your Fixed Expenses won’t change much month-to-month.
Your variable expenses
Your Variable Expenses can be easily grouped and tracked using a budgeting app.

Once a month, open it up, drop the expense total from each of your main app categories into the relevant column on the ‘What do I need?’ tab and you’ll start to get a very clear picture of where your money is going (and how much of it is going there!) each month.

(You can of course use the apps themselves to compare monthly spending, but I find it’s clearer if you drop them on the sheet.)

Do the same thing with your income.

Your income

This is where that student loan calculation from Step 1 comes back in. The sheet pulls through your student loan portion for the month (calculated on the ‘Spreading your loan’ tab) and adds it at the top of the income column.

It’s not strictly ‘income’ but it can be thought of as such while you’re a student…

The sheet will tot up the categories to tell you your total expenses (Row 40: What do I need?) and then deduct your expenses from your income to show you your cashflow for the month (Row 43).

Your cashflow

If the figure is positive, you’re spending less than you’re bringing in, great!

If it’s negative (which it may well be during study) and continues to be, you’ll need to do something to either lower your expenses or raise your income, so take action!

Step 4: Tracking is the key to success

A lot of people will tell you that budgeting is the key to keeping your finances in shape as a student and beyond. But this is only true if you accept the reality of your expenses – and most people don’t.

More often than not we create a budget from numbers we’ve plucked from the sky. Our perception of these costs is often very different from the reality, which means we inevitably ‘break the budget’, tell ourselves off and then get demotivated and give up on it.

via GIPHY

Budgets should change. Don’t feel bad about it.

The secret to budgets (that is often not discussed) is this: Success with this stuff depends more on reflection than prediction. It is the tracking that makes the difference.

Budgets should change. It is not about chucking some numbers on a spreadsheet and hoping they’re right, it is accepting that it is a guide and it won’t ever be 100% right, then periodically checking and correcting your assumptions.

If you use an app to track your expenses and update the sheet once a month, you’ll have a much better sense of your real expenses. You can then use that information to make more realistic decisions about what to budget for the next month – and so on.

You don’t have to wait until the end of the month either. The apps often allow you to setup running totals.

For instance, you might set a limit of £100 a month for food shopping. Every time you check in on the app, it will tell you how far through that figure you are for the month – and you can adjust your spending accordingly.

Step 5: Repeat this once a month. Don’t spend ages on it.

via GIPHY

I always tell people not to spend a long time doing this.

It should be just a case of nipping through and dropping any totals from the 10 or so spending categories on your app into your sheet. Then the balances from the accounts on your ‘What have I got?’ tab.

If you’ve kept things tagged-up on the app throughout the month, this should take you a maximum of 10 minutes.

It doesn’t need to take a long time. In fact, it is much better if it doesn’t. You want this habit to stick, not become a chore.

Talking to yourself

Once you’ve pulled the info together, give yourself a moment to look over things on the sheet. Ask yourself the following questions:

  • Is there anything unexpected or surprising about the month’s spending? Why is that?
  • What was worth the money? (It made you genuinely happier, or had some considerable or lasting benefit)
  • What really wasn’t worth the money? (It was a waste, or had very short-lived benefits)
  • How does my spending compare to the previous month?
  • Is my ‘What have I got?’ number (Net worth) going up or down?

This should take you about another 10 minutes. But to be on the safe-side, let’s say the whole process should take you 30 minutes a month.

That’s just 30 minutes a month to get clarity on how much you have, where the money is going and whether you’re on a good course, or need to make some changes.

Don’t waste time agonising over decisions you’ve already made or getting forensic in your analysis of micro transactions. We’re looking at trends and overall direction here.

Spend just a little time putting these habits in place now and you’ll reap the benefits for the rest of your life.

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Guides Principles

Investing for freelancers: what is it and why bother?

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Photo by Mathieu Stern on Unsplash

A jargon free guide to investing for freelancers and self-employed creative workers

You’re given three wishes. What’s the first thing your inner wise-ass asks for? That’s right: more wishes. When it comes to finances there is an option that comes pretty close to this scenario – it’s called investing…

I’ve said it before and I’ll say it again: no one gets into creative work for the money. There are benefits in creative work that far outweigh the relative dent in your paycheque. It’s an exchange the majority of us are happy to make. But with less cash available to us across our careers, we need to be smarter with what we have. This is where investing can help us.

Disclaimer: This article is for financial information and education purposes only. It is not financial advice. Investing carries risks. The value of your investments and can go down as well as up and you may not get back the original amount invested. Always do your own research and seek independent advice where required. Read the full disclaimer here.

What is investing?

The term ‘investing’ conjures up all sorts of negative connotations of city boys, YouTube shysters and sheep-stealing aristocrats. But let’s try to ignore those preconceptions for the moment, because investing is far too powerful a tool to leave in the hands of such characters.

Instead, let’s go back to the wish analogy. If our money is like wishes, then once we’ve covered our basic needs and a few things that make a genuine, lasting difference to our happiness, what’s the smartest way to use what’s left?

“Investing is about short-term sacrifice for longterm gain – this is something we are good at in the creative industries.”

Probably using it to buy things that produce more income. This is the process of investing and those ‘things’ are called assets. They come in many forms – for instance, stocks, bonds or rental property – but you can think of them as things that ultimately put money into your pocket.

Let’s borrow from another fairy story – the golden goose. That sparkly water fowl is an asset. To raise a golden goose you would need to buy the goose, invest in some feed, maybe build a pond and some form of shelter, but the golden egg it popped out every day would make it worth the initial sacrifice.

Investing for freelancers
Photo by Sharon McCutcheon on Unsplash

Don’t dismiss investing as a boring thing for boring people

Think of it this way: buying assets is how you make money work for you, instead of the other way around – and that is a considerably more exciting concept.

Each good asset you buy will generate a little bit more income. If you’re on a low or variable income from your work, investing could one day make a real difference to your cashflow.

“Keep it simple, invest in things you understand and make it a habit that you keep over the longterm”

As you acquire assets, you can choose to spend that increased income, or reinvest it to buy more assets.

The latter habit is how the “rich get richer”, why “money goes to money” and why the pandemic – with its stock market crash (resulting in cheaper assets) and subsequent recovery – has created more billionaires than ever before.

Contrary to popular belief, though, you don’t have to be wealthy to invest. Anyone who can create a bit of disposable income can choose to funnel some into investments.

Keep it up and, eventually, you may be in a situation where you have built up enough income-generating assets to make a huge difference: to your lifestyle, your travel plans or even backing creative ventures of your own.

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Thinking longterm is something creative workers know how to do

To invest, you need to make a choice to put that money into something for the longterm (in the stock market, this is usually 10 years+) instead of spending it.

Investing then is all about short-term sacrifice for longterm gain and, for all the crappy stereotypes about creative people and money, this is something we are good at in the creative industries.

“Many in creative roles have better things to do than watch the markets all day and cursing that Tesla dipped while they were in the loo.”

Any actor who spent years waiting tables so they could make auditions knows about investment. Anyone who did the internship and landed freelance work; who spent time at the funding workshops and received an Arts Council grant; who saved their gig money and bought recording gear… I’ll stop listing cliches now, but hopefully you get the picture.

We might feel repelled by some of the imagery around investment, but most creative types have already adopted this core concept.

Why you need to figure out investing now, not someday

Here’s a well-known example (I’m not the first to use this)…

man and woman sitting on brown sand during daytime
Photo by Brooke Cagle on Unsplash

Two 20 year-old twins – Early Ellie and Late Larry – start jobs with identical incomes.

Early Ellie decides to immediately invest £100 a month. She pays in for 10 years, until she’s 30, and then stops – making a total contribution of £12,000. She then leaves it invested until she is 60.

Late Larry waits until he is 30 to start investing, but then diligently pays in £100 a month until he is 60. A total contribution of £36,000.

Both get the same annual return of 7% on their money and opt to reinvest any returns it generates across that time.

Question: Who do you think ends up with more by the time they’re 60? Ellie who invested £12,000 or Larry who invested £36,000?

Continue reading “Investing for freelancers: what is it and why bother?”
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Mentoring and the creative industries: How can a mentor help you?

view of two persons hands
Photo by Austin Kehmeier on Unsplash

We talk mentoring for creative workers, with I Like Networking’s Isabel Sachs

There has been an increasing awareness around the concept of mentoring in the creative industries for the past few years. The pandemic has only supercharged this trend. I spoke to Isabel Sachs, founder of I Like Networking, about the benefits of mentoring, how to find a mentor and how to make the most of a mentorship opportunity.

For all the considerable challenges of Covid-19 facing creative workers, there has been a silver lining. The resulting technological change has simultaneously opened new doors and clearly highlighted the vast disparities in gender and racial equality that exist in all walks of life, not least the creative sector. As such, there is now a rising desire to share knowledge/contacts, actively address inequality and generally extend a helping hand to those who are trying to progress in the creative industries.

I spoke to Isabel Sachs, who has just launched I Like Networking’s second annual mentorship scheme for women and non-binary professionals entering or working in the creative industries. It’s completely free to take part, so check out the stellar line-up of mentors and, if you’re interested, you can apply until 19 April, 2021.

I took the opportunity to ask Isabel a few questions about the scheme and the benefits of mentoring for creative workers. Here’s what she had to say…

What’s your background in the creative industries and what motivated you to start I Like Networking?

“I first started in the creative industries serving coffee at film sets when I was around seventeen years old, so it’s been a while! I didn’t know exactly where I would fit in so for a few years I experimented quite a bit, working at an art gallery, fashion shows and more. I got really into the film industry world until a chance encounter with two artists and directors led me to open my own company in Brazil. It was a great experience and I’ve learned so much, so fast.

“I sold it in 2015 after having moved to London to explore other options. While I was here I did a masters in arts management at City University and worked at various organisations such as V&A and East London Dance. I was on a new freelance project in music when Covid hit in April 2020 and, well, that didn’t go ahead!”

In need of financial support amid the Covid-19 pandemic? We’ve rounded-up some options here: Coronavirus support: resources for the creative industries

“Having that support and soundboard was essential, not just to my career development but for my mental health”

Isabel Sachs
Please tell me a bit about the ILN mentoring scheme. Who is it for and how does it work?

“The mentoring scheme is for women and non-binary people aged 18+ who work or want to work in the creative industries. It’s international and is intended for anyone who needs support getting ‘unstuck’ or perhaps pivoting. Mentees are paired with their mentors for four sessions over 3-4 months, throughout which they will work on goal-setting, tools and will also be introduced to other industry connections through their mentors. In 2021 we have over 50 mentors involved, working in Marketing, Music, Theatre, Visual Arts, Social Impact, Fashion and more.”

Isabel Sachs (founder of I Like Networking mentoring scheme)
Isabel Sachs, founder of I Like Networking
Have you had the benefit of mentors? How did they help you?

“I never had a formal mentor but I was very lucky to have tons of informal mentors throughout my life. Having been an entrepreneur and a freelancer for most of my career, having that support and soundboard was essential, not just to my career development but for my mental health.”

What difference can a mentor make to your career? Do you have any good examples in this respect?

“A mentor can do wonders for anyone who is willing to put in the work. They can help you understand where your strengths lie, where you might be sabotaging yourself and especially regain confidence. We have a podcast episode coming out 26 March with former mentees from our programme, which are great examples of all of that!”

“Mentors can help you price yourself correctly and even negotiate”

Isabel Sachs

How to find a mentor

How can someone find or identify a potential mentor?

“A mentoring relationship is one of trust. So, I’d start by assessing why you want a mentor now and what are the key issues you’re wanting to work on before reaching out to someone. It can be a peer that seems to have strengths in that area, or someone whose career trajectory you truly admire. Ideally, you’d start building a rapport and start to have conversations with someone before asking for a formal mentoring relationship but you can also have mentors (like I did) that you connect with ad-hoc throughout your life. We have a whole session on finding mentors [below]!”

What tips do you have for readers who are thinking about approaching a mentor?

“Know what you need from them and be clear on how you think they can support you and how much support would you need (is it a one-off conversation? Four sessions across six months?) Be clear on your goals and why you think they would be the best person for this.”

Click here for I Like Networking's mentoring scheme
If you like the sound of I Like Networking’s mentorship scheme, apply before 19 April, 2021.
What should we consider when establishing a mentor/mentee relationship?

“It is important to understand that a mentor sort of keeps you company while you go through your career development or career hurdles. They won’t do the work for you, so you must be ready to do a lot of work yourself, listen to prompts and, most importantly, be open to feedback. But I’d say respect and trust are they elements to consider”

The not-so-secret mission of Creative Money is to help people figure out how to sustain themselves in the creative industries. Is it OK to discuss finances or how to navigate the financial realities around creative work?

“100% – I think this is vital as well and I grew up with a lot of privilege in that aspect because my parents were adamant with teaching us financial education from an early age. When I opened my own company, my father used to say he was my back-office: he taught me a lot about cash flows, taxes and pension. I talked to colleagues and informal mentors about this a lot as well. Mentors can support you with finding a business model that works for you, help you price yourself correctly and even negotiate.”

“Individuals who work with great mentors see more promotions, increased confidence and better personal and professional outcomes”

Isabel Sachs
It feels like the idea of mentoring has really caught on in the UK in the last few years – becoming more accepted by both potential mentors and mentees. Why do you think that is?

“I am not so sure! But I’d say since the pandemic I definitely saw a desire to be proactive and support one another and mentoring is a fantastic way to do that because it really is a relationship which is mutually beneficial and accessible to almost anyone. The results speak for themselves – individuals who work with great mentors see more promotions, increased confidence and better personal and professional outcomes. What our programme adds to that is the networking aspect which is KEY in the creative industries which still often operate on the basis of who you know, so we are trying to smash some of those barriers that way.”

What final words do you have for anyone who is nervous or hesitant about approaching someone/joining a scheme?

“Feel the fear and do it anyway. If you feel like you’re stuck and you’ve tried everything else, mentoring is a free tool and you receive what you put into it. You can also start by reaching out to a trusted friend and colleague with small things such as reviewing your CV and cover letter or doing a mock interview with you. You will receive feedback, probably see the value in it and be ready for more! Also, as mentioned, take a look at our podcast and other resources as they will help you demystify some of that.”

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5 lessons learned from talking to creative students about money

flat lay photography of blue backpack beside book and silver MacBook
Photo by Matt Ragland on Unsplash

Back in November, I launched a series of online workshops at music colleges across the UK, the aim of which was to help creative students to better manage their money.

The idea being that if they can figure it out during their studies they might have an easier time while in education and start their professional lives on a stronger footing. As a result, I have spoken to students from Manchester to Brighton, London, Bristol and Birmingham. It’s been really interesting to see how this stuff connects with people.

“I always ask people who come to the workshops what financial education they have received. The most common answer is ‘I haven’t had any.”

Like many of us, I am what you might optimistically call a ‘multi-hyphenate’ freelancer. Alongside my main role in music journalism, I also spend a day a week teaching budding music/media types and I do Creative Money stuff about one day a fortnight. The workshops have felt like a good way to bring all these threads together.

What’s more you learn pretty quickly as a tutor that your knowledge is highly subjective. So, with the first iteration of the workshops, I tried to be a good listener. Now, as I go into the second run of these workshops, I’ve been pondering some of the main points I’ve learned from the first run. Here’s what I’ve found…

1) Fix the cause, not the behaviour

It probably won’t come as a surprise that students worry about money, however, the proportion still surprised me. An astonishing 71% worry about making ends meet, according to Save The Student’s annual money survey. Money gets quite intertwined with our emotional state sometimes and many of them tell me that they have experienced anxiety when checking their balance.

I can get on at them about using a budgeting app, but if someone feels they can’t check their balance in the first place, it’s not going to help. Instead, I’ve realised that helping people to think about the causes of that anxiety (be it self-judgement, role models, or a simple knowledge gap when it comes to money) needs to take priority before you can change those behaviours.

2) We still have a major issue with financial education

I always ask people who come to the workshops what financial education they have received. While a few have had some tips from parents, the most common answer is ‘I haven’t had any.’ Again, Save The Student’s annual money survey backs this up, with the vast majority (71%) saying they wish they’d had a better financial education.

Martin Lewis has made some good strides in partnership with Young Enterprise and this stuff is now on the secondary curriculum, but it seems it’s still potluck when it comes to the depth and resources devoted to the topic by different schools.

The majority of the young adults and adults in this country (i.e. those with almost ALL the earning and spending power) have had no financial education outside of the ‘university of life’, ‘school of hard knocks SON’ etc. Talk about the blind leading the blind…

I have written before about the fact that you can not be inherently bad with money – most of the time we’re just not educated. However, the more I consider the lack of educational infrastructure around this utterly essential topic, the more the situation strikes me as completely insane. And that’s before we try to get our heads around the misbranded student loan system…

3) Location matters

Because I am A COOL GUY, I surveyed students at the beginning and end of the five week course. They were asked to gauge agreement or disagreement with a number of statements, for instance, “I know what to do if I run out of money.”

One thing that struck me was that students in London and Brighton were noticeably more anxious about their finances. Those students’ biggest gains in the course came from alleviating anxiety points. For instance:

  • “I am confident avoiding or getting out of debt” = 50% increase
  • “I know what to do if I run out of money” = 68% increase
  • “I worry about running out of money” = 46% decrease
  • “I feel anxious about student debt” = 53% decrease

While I’m pleased to see the course helped them, I think it’s telling that they made noticeably greater gains in these areas than their counterparts in Manchester.

Of course, many students already consider living expenses when picking a university, but the numbers would suggest that those in places like Manchester were generally happier about their finances.

Given money’s ability to affect everything from our mental health, to our diets, relationships and even our ability to focus on education, the financial impacts of the location are worth serious consideration when picking a place of study.

4) Most of them know much more than I did

I was not great with money at university and I had good financial role models around me.

“The students I meet rate far, far lower on the ‘financial tool-o-meter’ than I did at their age. This is a good thing.”

My typical day at university went something like: wake up too late to make breakfast. Eat a disappointing plastic sandwich on the way to my lecture. Sit through engage fully with a lecture and seminar. Break for lunch (baked potato from the canteen). More lessons. Go to the pub. Eat a gigantic cheeseburger. Drink. Go to another bar. Drink. Give £20 to one of a series of guys with suspect nicknames. Order pizza. Fall asleep in front of the DVD menu of Alan Partridge.

Essentially: it was the best of times, it was the worst of times. My approach was fun and fairly typical, but the consistency of it was, err, sub-optimal…

The current generation have only known the world, post-financial crisis, and are aware of the need to not-be-tools when it comes to money. Even if they haven’t got all the answers, they’re taking this stuff seriously because they have been left without the comfortable cushions of fully functioning welfare, healthcare and employment opportunity enjoyed in the previous two or three decades.

The students I meet rate far, far lower on the ‘financial tool-o-meter’ than I did at their age. This is a good thing.

5) The best solutions are the simple ones

Many people think learning to handle their finances will be a dangerous combination of the complicated and the mind-numbingly boring. It doesn’t need to be either. People can be suspicious of simple principles, but my experience thus far has told me they tend to work best because it makers them much easier to communicate, adopt and turn into habit.

Once you can address the causes of your financial behaviour, the basic solutions to any financial goal almost always comes down to the following…

  1. Track your net worth, income and spending
  2. Find a way to spend less than you earn
  3. Save or invest the difference

Tracking your net worth might sound fancy but it is essentially just asking ‘What have I got?’ (i.e. your cash, savings and investment balance minus your debts) once a month and noting the total.

There’s an abundance of apps that can track your spending and income without demanding you switch accounts. Then, once you know what you’re spending, you can see where the fat is and trim accordingly, making way for that burgeoning savings habit.

Sometimes I tell people how I go about the above and I can see them switch off, as if it’s too simple or obvious to be really helpful. It needs to be simple, though, or we don’t do it, at least not consistently. To the doubters, I ask, “But are you really doing all of this?” Most are not. Keep it simple, students – and everyone else, too…

Want me to talk to your students about running their personal finances? Get in touch!

Creative Money Blogs include principles, resources and opinion pieces relating to personal finance for creatives.

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Can you buy happiness? 5 principles for happier spending

Can you buy happiness: 5 principles for smarter spending
Photo by Jacqueline Munguía on Unsplash

Trying to buy happiness itself is unlikely to work, but changing the way you spend and consume can help you to get more of it

No one gets into creative work for the money. However, as I started to discuss last week in my How to spend money piece, the resulting limitations on our funds mean we need to be smarter-than-average when it comes to our spending. This means it needs to make us as happy as possible for as long as possible. So how can you buy happiness?

Elizabeth Dunn and Michael Norton are two US academics who spent years researching the impact of different spending approaches on people’s happiness levels. Dunn, a professor of psychology at the University of British Columbia and Norton a marketing professor at Harvard Business School, eventually recorded their ideas in a helpful book entitled ‘Happy Money’.

Happy Money: The New Science Of Smarter Spending book cover

I stumbled across ‘Happy Money’ when I was working in my local library and I’ve since found it really useful in helping me to reframe spending decisions.

‘Happy Money’ resists the temptation to get preachy, which means it does not trigger my internal ‘f***-off!’ sensor

It’s an impressive book because, although there’s a substantial amount of research behind their recommendations, it reads in a very straight forward, useful fashion. It also resists the temptation to get preachy or dogmatic, which means it does not trigger my internal ‘f***-off!’ sensor.

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Inside, they identify five key principles of happy money. You can learn more about them below, but the book goes into much more detail and has loads of compelling evidence and useful examples to back it all up. As such, I really recommend you consider reading ‘Happy Money’. You can buy it over on Amazon or, even better, drop by your local library (when possible).

  1. Buy experiences
  2. Make it a treat
  3. Buy time
  4. Pay now, consume later
  5. Invest in others

1) Buy experiences

photo of assorted-color air balloon lot in mid air during daytime
Photo by Mar Cerdeira on Unsplash

Buying experiences instead of stuff usually makes us happier and in a more lasting way.

Cleverly-marketed shiny things are designed to persuade you to buy a lifestyle by purchasing a product. We want that positive change – it’s part of process called ‘self-actualisation’ (an awful term for the process of trying to become the person we want to be) – and advertisers are very good at telling us that buying their stuff will get us there.

Look to buy experiences that match Dunn and Norton’s criteria. You’ll be happier for it

The problem is that it usually does not. Just look at the scores of high-earners who find the big house and the statement car to be somewhat hollow victories, once acquired.

A sense of self

Instead, Dunn and Norton cite a Cornell study that shows how things like travel, theatre trips, gallery visits and dinner with friends come to define their subject’s sense of self much more than their purchases.

Interestingly, when given the option to go back in time and change one of these purchases for an alternative, those who had bought an experience were much more likely to stick with their initial decision.

This makes sense to me. In my role as a music journalist, I’ve often heard musicians say as much: “There’s nothing I’d change, it all made me who I am…” etc. Indeed, it happens so often that I’ve written it off as a crap question.

Notably, Dunn and Norton say experience-based spending proves even more satisfying when it…

  • brings you into contact with other people
  • results in good stories
  • is linked to the ideas you have about who you want to be
  • is in some way unique

Resist the urge to buy the shiny thing whenever you can and instead look to buy experiences that match Dunn and Norton’s criteria. You’ll be happier for it.

2) Make it a treat

white teacup near bread
Photo by Linda Söndergaard on Unsplash

Being conscious of what you consume and spacing-out (or varying) the good stuff allows you to gain more enjoyment from it.

Have you ever been round the likes of Borough Market in London (or any farmers market/purveyor of posh produce) where they divvy out free samples?

You try a sliver of cheese and, suddenly conscious of the flavour, it tastes phenomenal. Four hours later, on the sofa, you can be ladling fat wedges of barrel-aged cheddar into your gob in front of Netflix and feel only a fraction of the joy. The more you consume, the less benefit you experience.

Diminishing returns

This is the psychological effect to look out for and that Dunn and Norton say justifies their ‘make it a treat’ approach. That aforementioned owner of the big house and statement car will find it stops making them happy because they soon get used to it. It’s the same with most things in our lives – and even our lives themselves.

Identify the good things and savour them by limiting consumption and being more conscious of them

A bit of mindfulness helps here, the authors say we should identify the good things and savour them by limiting our consumption and being more conscious about enjoying them.

So, if fancy cars really matter to our hypothetical ‘high-earner’, they might be happier buying something dependable and efficient, then using the savings for regular track days, or just renting a posh car once in a while.

At the other end of the expense scale, there’s a lot of happiness to be gained in your daily life, whether it’s being a tourist in our your own city, savouring your food (away from the TV) or making the most of those first few drinks.

3) Buy time

person holding yellow round analog clock
Photo by Morgan Housel on Unsplash

I think this is probably the most important lesson for creative workers to absorb. If one thing from this list is going to make the most difference to our ability to develop the work and lifestyles we enjoy, it is buying time.

For most of us, the sense is either that money is scarce and you need to work more to earn more, or that your time is very valuable and therefore also scarce. Either way, we all feel time poor. So what can we do?

Astonishingly, they report an hour long commute has a similar sized impact on your happiness as having no job at all

Well, they say if you want something give it away, and it is apparently the same with time. For instance, in a study cited by Dunn and Norton, those volunteering for just 15 minutes a week felt like they had more free time as a result of giving some up.

So how do you buy time? It’s usually a trade-off. Maybe you take a lower paying job closer to home, or you leave the overtime on the table, or (as the authors suggest) resist the urge to invest in time-sinks like cinematic TVs.

The three big ‘time wins’

Dunn and Norton say the big three areas to focus on are commuting, watching television (and I think we can safely extend this to screen time in 2020) and socialising.

Astonishingly, they report an hour long commute has a similar scale impact on your happiness as having no job at all. While another survey found that one of the greatest sources of happiness was simply playing with your kids.

Even if you feel you’re stuck with the commute, making a conscious effort to directly trade screen time in favour of social interaction could have huge benefits on your happiness.

Time and money don’t have to be rivals, but we can probably spend both more wisely.

4) Pay now, consume later

white yacht on dock

Photo by Karim MANJRA on Unsplash

Reverse the debt process – take the purchase pain on the chin now and you’ll enjoy it more later.

We live in a culture where it’s possible to fulfil small desires very quickly, without paying for them upfront. This phenomenon is only speeding up – look at the rapid rise of store credit firm Klarna, as a recent example.

The products often don’t make us happy in a lasting way, while the debts definitely make us unhappy. They also limit our future spending power and, by extension, future opportunities to use that money in beneficial ways.

Our natural instinct is to seize a benefit and delay the pain (payment). Reversing this process makes us happier

Dunn and Norton say that reversing this process, conversely, has great benefits in terms of happiness. Paying upfront for something – whether it’s a city break or an Xbox – and spending some time anticipating it can actually increase our enjoyment of the product or experience.

What’s more, they say that regularly using this anticipation process, even just thinking about tomorrow’s dinner, makes you a more optimistic, happier person.

What purchases can you make now and anticipate?

The process works best when delaying the experience allows you to research aspects of it that will increase your expectations of a positive experience (e.g. looking up menus, looking at hotel pics).

They say it’s also particularly effective when the experience itself is likely to be brief, as it allows you to maximise your happiness from the consumption. Of course, this doesn’t work for everything: don’t delay your MOT, for example.

The authors also point out that our natural instinct is to seize a benefit and delay the pain (payment). This is the sneaky power of debt – the reason we find it easy to use credit cards, but hard to save for pensions – but it’s also the thing least likely to make us happy.

Dunn and Norton’s research tells us that if you can do the reverse of that instinct, pay upfront and ideally consume later, you’ll be a lot happier as a result of your spending.

5) Invest in others

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Photo by Javier Molina on Unsplash

Spending money on others makes us even happier than spending money on ourselves.

Dunn and Norton recount an experiment in Vancouver in which a student handed people $5-20 to spend on either themselves or someone else. Those who did the latter reported a much higher degree of happiness than those who spent the cash on themselves – no matter how much they’d been given.

The link between happiness and what they call ‘prosocial spending’ is remarkably universal

A much broader study of US citizens found a similar correlation, as did one that compared similar experiments between a rich country (Canada) and a poor one (Uganda). Dunn and Norton describe this link between happiness and what they call ‘prosocial spending’ as “remarkably universal”.

Make it a choice, make a connection, make an impact

Again, Dunn and Norton say that there are things you can do to increase the happiness return. 

First, make it a choice (mandatory charity is less satisfying). Second, make a connection (perhaps by giving in person or to someone that’s close in some way or even just to a charity of your choosing). Third, pick something that has a notable impact, even if it’s a small donation (they cite examples like malaria nets, or spontaneously buying meals for strangers).

Interestingly, even if you don’t have a philanthropic bone in your body, Dunn and Norton note studies that found those who routinely gave money away also wound-up wealthier over the longrun.

Those are the five principles behind ‘Happy Money’. They’ve certainly come to shape the way I think about my spending. How can you adapt them in your life?

How can we help you?

What issues are you facing? What questions do you have about managing your money in the creative industries? What would be most helpful to you?

We don’t have all the answers, but maybe we can find someone that does.

Send your questions and suggestions to creativemoneycontact@gmail.com.
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Blogs

7 reasons to be cheerful: what’s working in the creative industries right now

Silver linings for creative workers
Photo by Aakanksha Panwar on Unsplash

Creative workers seeking silver linings, start here

It seems like there’s been nothing but bad news for the creative industries since the start of the pandemic. However, good things have happened. Let’s take a moment to celebrate some of them…

We should start by acknowledging the giant, viciously-tusked elephant in the room: things have not gone well lately for creative workers.

Camera operator, dancer, opera singer, publisher, podcaster, designer, writer, photographer, or musician: the one thing we all have in common right now is that our industry, our finances and our access to wider opportunities, have all taken a considerable hit.

It can be easy to lose hope in the face of such news, but this is exactly why it’s crucial to recognise and celebrate the victories of the last few months. And there have been victories. Skills have been gained, organisations formed and new community champions have emerged, all of which will have lasting, positive impacts on the creative industries.

Ever the optimist, below I’ve rounded-up a few reasons to be cheerful…

Freelancers make theatre work – established June, 2020

1. Our professional communities have grown much stronger

Wherever you look in the creative industries, you will see new organisations forming, new voices emerging and established bodies finding new ways to connect with their communities.

Take Freelancers Make Theatre Work, for example. They only launched in June, but have since worked relentlessly for UK theatre workers, sharing a huge variety of useful resources (from mental health to financial guidance), showcasing the people behind the industry figures and being somehow both fierce and friendly in articulating freelancers’ needs.

Elsewhere, the mentoring and development opportunities on offer from existing bodies like Women In Film & TV, ScreenSkills and Presspad UK have been really well-received. Helping their respective industries to open-up a little more and start to move beyond simply paying lip service to the idea of community.

2. Tom Gray’s #BrokenRecord campaign is raising awareness of an inadequate royalty system

Songwriter and Gomez man Tom Gray has been doing a fantastic job of highlighting streaming services’ low royalty payments at a time when musicians and writers most depend on them.

A songwriter might get just 6.5% of a song’s streaming revenue of “approx £0.005 per play, ” Gray says – and this can be split across multiple writers.

The problem is by no means solved, but more people are aware of it than ever, the pressure on the streaming services to change has never been higher and there are now real conversations being had about alternative models and solutions.

How to get started on Patreon
Patreon passed the $2 billion mark recently

3. Fans are backing artists and creators in more ways than ever

Patreon says creators have now raised more than $2 billion via its platform. It reportedly took six years for the first billion, but just 15 months for the second. Meanwhile, 100,000 new creators have signed-up since March. It’s no panacea but it shows people are realising that their favourite creatives need real backing, not just meagre royalties or Google Ad revenue.

Elsewhere, BandCamp – hailed by the industry as one of the best ways to support musicians – has risen to the challenge. Since they start of the pandemic they have channelled some $20 million directly to artists and labels via the BandCamp Friday scheme, which sees the firm wave their platform fees on the first Friday of the month. They also report that since March, fans have bought over $75 million worth of music and merchandise via the platform.

Want to know more about Patreon? Check out our guide How does Patreon work for artists and creators? featuring UK podcasters RedHanded.

4. The Music Venue Trust’s #SaveOurVenues campaign has already helped save 140 iconic small venues

The Music Venue Trust is a charity that aims to protect the UK’s grassroots venues, recognising that our world-beating music industry needs to be supported from the ground-up. They have performed phenomenally well during the pandemic, playing a big role in securing the £2.25 million emergency support package that kept the lights on in over 140 of the UK’s finest small venues. They are still over 400 that need help, but they’re still coming up with innovative ways to raise cash and awareness.

In addition, they’ve also raised £1 million for their own crisis fund, led a new ‘Passport Back To Our Roots’ (big artist, small gig) initiative for re-opening and secured £2.2 million support for Scottish venues.

The #SaveOurVenues campaign still needs support and you can donate here

Excluded UK logo
ExcludedUK have done much to champion cultural workers

5. Fierce new champions have emerged

Yes, it’s a bit comic book, but the work of those behind the collective #GapsInSupport campaign has been nothing less than heroic. Rishi Sunak may pretend he isn’t listening, but he’s definitely heard.

Meanwhile, the seemingly tireless efforts and punchy campaigning of the likes of Ellie Phillips, Jodie McCallum and all those behind the Forgotten PAYE, New Starters For Justice, Forgotten Ltd and BBC PAYE freelancers groups is raising real awareness of the issue, with new major media coverage appearing every day.

It’s been a really tough time for some of us, but the campaign has, I suspect, provided a quite literal lifeline to those they represent – many of whom have now gone many months without income or appropriate government support.

Looking for funding opportunities?

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6. That £1.57 billion support package

There are valid concerns about the government’s £1.57 billion support package for the arts. Are we going to wind-up sustaining cultural venues at the expense of our creative workforce? Is it going to materialise on time? Is the Arts Council funding process inherently biased to organisations overloaded with hefty salaries and administrative workers?

However, £1.57 billion is nonetheless a huge figure and a significant statement of support for the sector. Some of it has already fed through to the small venues fund (above), while £2 million has been split between HelpMusicians Financial Hardship Funding programme and UK Theatre’s Theatre Artist’s Fund.

What’s more, following this week’s deadline, the Culture Recovery Fund will soon be distributing grants between £50,000 and £3 million to successful applicants.

7. The tide just might be turning (albeit slowly)

It will come too late for many and maybe we’ll take a step backwards before we move forwards this winter, but the wheels of democracy are slowly turning in the creative industries’ favour. The Digital, Culture, Media and Sport Committee (which scrutinises the government’s DCMS department) has completed its inquiry into the impact of Covid-19 and has recommended the creation of “a sector specific deal that provides continued support for cultural workers, including freelancers and small companies…” Encompassing “long-term support, including tax reliefs, to rebuild audience figures and investment.”

This is by no means a done deal – the government has two months to respond and may well mumble about the £1.57 billion and do little else – but it is a positive step. Let’s hope it’s the first of many.

Silver linings for creative workers
Photo by Aakanksha Panwar on Unsplash

Creative Money Blogs include principles, resources and opinion pieces relating to personal finance for creatives.

How can we help you?

What issues are you facing? What questions do you have about managing your money in the creative industries? What would be most helpful to you?

We don’t have all the answers, but maybe we can find someone that does.

Send your questions and suggestions to creativemoneycontact@gmail.com.
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Categories
Opinion Short Cuts

Short Cuts: “Sometimes you have to work”

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Photo by Mindspace Studio on Unsplash

Every one in a creative career has to do other work at some point. So why do we act like this is some kind of failure?

Sometimes you have to work. This is something that has stuck with me from the recent How I Make It Work interview with Stephen Mallinder.

Mallinder’s innovations with Cabaret Voltaire and continuing contribution to electronic music (via the likes of Wrangler and Creep Show) have proven to be hugely influential. He has played all over the world, received great critical acclaim and sold a significant amount of records. He is, by almost every criteria, a very successful musician and yet as you’ll see in the piece, he has nonetheless operated in a huge variety of (mostly enjoyable) roles in order to sustain himself throughout his three decades in the music industry.

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For those of us who earn the majority of our living from creative activities, it can be easy to think that engaging with ‘other work’ is a kind of failure. That if you do, you’ve somehow cocked it up – you had it and it got away. Hearing Stephen’s succinct point that “sometimes you have to work” was liberating, in this respect.

Thinking that you’re a ‘creative’ or nothing is, ironically, likely to hasten your permanent exit from a creative industry

Last week, DJ/presenter Shell Zenner discussed how important it is to diversify and to have multiple skillsets. The longer you want to sustain yourself in the creative industries, the more important this becomes. Likewise, it’s perhaps equally important to accept that there will be times when things are off-the-boil with your ‘main’ activity and you might just want, or need, to try something different.

The binary thinking that you’re a ‘creative’ or nothing is, ironically, likely to hasten your permanent exit from a creative industry – either due to the financial pressures of operating solely on the ‘starving artist’ axis, or because doing the same work becomes so unsatisfying that you become disillusioned with the whole thing.

Primary path

Mallinder talks instead about dedication to a ‘primary path’ – from which you will periodically meander and return. He discusses this in terms of making music, but it could be any creative practice that you consider your ‘core’ activity. Our conversation made me realise that the longer you are in an industry, the more likely it is that you will diverge from that primary path and that at some point this becomes not just acceptable, but entirely necessary.

Inspiration and opportunities tend to come in waves – bills do not…

You need to learn new things, to question what you do and push yourself in order to develop your creative practice. Otherwise, it just gets stale. Doing different work, whether developing a new skillset in your existing industry, taking a role outside of it, or doing something like teaching, can therefore be really beneficial not just to your finances, but also to the way you think about your ‘primary path’.

Sometimes you will have to do certain jobs simply to keep the lights on – and they won’t always feel beneficial. Inspiration and opportunities tend to come in waves, after all – bills do not. What matters is understanding that you can, and likely will, come back to that primary path – that there are multiple ways to be creative and to make that your life. Sometimes you will have to ‘work’ then, but that is no failure.

Short Cuts is Creative Money’s series of quick tips, tricks and thoughts about saving or making money in the creative industries.

yellow and brown gift box on brown wooden table
Photo by Mindspace Studio on Unsplash

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Categories
Guides Resources

UK arts funding, grants and development opportunities

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Photo by Markus Winkler on Unsplash

Here you’ll find a list of UK arts funding opportunities, split into sectors. Also included are other grants and selected development or training opportunities relevant to the creative industries.

Current opportunities will usually appear first in the Creative Money newsletter and then filter through to this page. The newsletter is totally free, so sign-up below if you want to get a head start.

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Want to let an audience of UK creative workers know about a funding, grant or development opportunity? Seen something we’ve missed? Drop us a line using creativemoneycontact@gmail.com.

Skip to sector:

Relevant ‘evergreen’ funding opps or resources will be listed under the ‘ongoing’ section for each sector.

In need of financial support amid the Covid-19 pandemic? We’ve rounded-up some options here: Coronavirus support: resources for the creative industries

Multi-sectoral support

Ongoing
The Arts Council National Lottery Project Grants

Supports artists, community and cultural organisations with grants in the range of £1,000-£100,000. Their remit has been tweaked (and will remain so until April 2021) for the recent relaunch in order to better respond to the needs of individuals, freelancers and small organisations working within or supporting the arts.

Clore Duffield Foundation

Funds UK arts/social charities (particularly performing arts) on an ongoing basis with grants ranging from £10,000 up to £1 million. You can apply anytime but it’s worth noting that the trustees only meet to make decisions twice a year – normally in June and December.

The Idlewild Trust

Funds registered UK charities working within the arts sector – in particular, projects relating to the nurturing of talent and development of professional opportunities – with grants of up to £5,000.

Art/design

Up to £25K grants for British Council Arts UK in Australia season

All or part of the project must be presented in Australia between 1 September 2021 to 13 March 2022 and align with the theme ‘Who are we now?’ Deadline: 17 August, 2020

Work/Leisure wants has put out a call for new and mid-career artists

Work/Leisure is inviting emerging and mid-career artists, living and working in the UK/Europe, to create new work in 2020. Successful applicants will be provided with an overall budget of £1500 and administrative and curatorial support from the W/L team, Abingdon Studios, and residency partners. Deadline: 17 August, 2020

Jerwood Art Fund Makers Open 2021

Jerwood Art Fund Makers Open 2021 has five £5,000 grants for early-career UK-based artists and makers to develop and present ambitious new works. Deadline: 26 August, 2020.

Unlimited launches new commission round for disabled artists

Unlimited is an arts commissioning programme that enables new work by disabled artists to reach UK and international audiences. They will have £500,000 to commission work from disabled artists and companies in three strands: Main Commission awards, Research and Development awards and Emerging Artists awards. Applications don’t open until October, but they’re getting the word out nice and early. Deadline: 27 October, 2020

Audio/radio

Update coming soon…

Film/TV/video

BFI/Doc Society Short Film Fund

A fund to support emerging UK creatives in all-forms of non-fiction film, including immersive and VR projects. Successful applicants will get a grant of up to £15,000 for production costs and projects must not be more than 40 minutes in length. Deadline: 18 August, 2020

€1.5 million for Cinemas as Innovation Hubs for Local Communities

The Commission is launching a €1.5M call for proposals to create innovative cultural hubs around cinema theatres, notably in areas where the Covid-19 crisis has had a very strong impact. Deadline: 21 August, 2020

Ongoing
Creative England’s New Ideas fund

Creative England’s New Ideas Fund can offer grants between £1000 and £25,000 to support the development of new and innovative ideas for screen-based storytelling entrepreneurs and businesses in the English regions. Applications considered on a rolling basis.

BFI Young Audiences Content Fund

A fund supporting the development and/or production of broadcasting content with public service values for under-18s in the UK.

BFI Network

A development and networking platform from the BFI, aimed at supporting new and emerging film talent. Offers some funding, though its short film grants have been currently paused due to COVID-19.

BFI Development Funding

Intends to back projects that might not otherwise secure early-stage financing, though you need to demonstrate prior filmmaking experience to qualify. Funds have been tweaked to front-load payments, if necessary, during COVID-19.

Music

Ongoing
HelpMusicians Funding Wizard

Yes, the name is daft, but this is an incredibly helpful tool for quickly assessing your music funding options. You simply enter some information in the form (type of musician, genre, career stage etc.) and it produces a list of potential funding opportunities for you.

Publishing

Call for disabled writers to pitch arts pieces

Art UK is looking for pitches from disabled writers who want to write about art and artists. Explore http://artuk.org for inspiration. Rates are around £100–£150 for pieces between 700 and 1,200 words. Send your pitches to andrew.shore@artuk.org and lydia.figes@artuk.org

Ongoing
Journo Resources: funding

The website Journo Resources has a great section and newsletter on funding for journalists.

Theatre and Performing Arts

Update coming soon…

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How can we help you?

What issues are you facing? What questions do you have about managing your money in the creative industries? What would be most helpful to you?

We don’t have all the answers, but maybe we can find someone that does.

Send your questions and suggestions to creativemoneycontact@gmail.com.
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Categories
Blogs Opinion

The ‘starving artist’ vs ‘the sell-out’ – the struggle of the creative worker

Sort out your personal finances so you and enjoy doing the work that you love
Photo by Alice Dietrich on Unsplash

Our thoughts on the financial outcomes of life as creative workers often seem to fall into two categories: ‘the starving artist’ and ‘the sell-out’. If only it were that simple…

I would wager that everyone who earns money from creative work has wondered at some point whether or not they’re ‘selling-out’. The tropes at the heart of this struggle are are within us all: the starving artist has unimpeachable integrity but negligible income, while the sell-out picks their gigs by the paycheque. They remain locked in combat, fighting for our very souls.

We’ve all likely had cause at some point to embrace the starving artist and some of us even come to experience life at sell-out end of the scale – gaining a full understanding of the ambiguous privilege of considerable wealth and fame.

Straight line thinking – how people often think about income and integrity

Sometimes, we may also consider the evener rarer ‘third way’, wild success on our own terms – let’s call this ‘the rockstar’ – but this often seems even further removed from our view of the achievable (though Seth Godin’s The Icarus Deception argues the opposite).

Short Cuts: “Sometimes you have to work”

At other points, we may feel we have no option but to leave an industry, or take some other work on in purely to pay some bills.

Anyone who’s even come near to experiencing true poverty knows that the starving artist cliché is a false romance

What’s interesting is the extremities of these viewpoints – that we seem to ascribe the myriad outcomes of our creative work as an ‘all or nothing’ endeavour. The truth of it, though, is that it is a spectrum – and that existing on that spectrum, rather than at one of two extreme poles, is not such a bad place to be.

Anyone who’s even come near to experiencing true poverty knows that the starving artist cliché is a false romance. It’s been perpetuated throughout history, often by patrons in positions of wealth, but while understanding or experiencing poverty and the broader human condition has no doubt informed great creative work, it is certainly not a route to happiness. In fact it is, by definition, a direct route to unhappiness.

What’s it worth?

At the other end of the scale, it is widely acknowledged that while wealth can help you ‘buy’ a certain level of happiness, the benefit of greater wealth tails-off dramatically once you’ve covered your basic needs and a few extra comforts. This is a phenomenon that US blogger Mr Money Mustache has popularised and termed the Marginal Utility of Money.

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Even Warren Buffett, the 89 year-old billionaire CEO of Berkshire Hathaway – and at one point the world’s richest person – counsels against the pursuit of wealth for its own sake. And this is a guy who bought his first shares aged 11.

“Doing reasonably well in this country really is pretty darn good,” he said, talking to US students in 1999. “Great wealth is the tiniest bit different, in a real sense, than having just a decent income. To trade a decent income and something you love doing… for huge wealth where you trade a lot of your principles would be a terrible mistake.”

So, if we agree that both extremes are flawed and stop trying to define our financial personalities against a minority of outliers, what does the right path actually look like? And what’s a reasonable income?

Great wealth is the tiniest bit different, in a real sense, than having just a decent income

Warren Buffett

That is yours to decide. For me, it’s enough to cover living expenses, to be able to pay for a few home comforts and holidays and to save enough to retire within the next 25 years (WHAT!?) At the more luxurious end, I’d like to spend as little time on compulsory work as possible. I like my work, but I value freedom even more.

Figuring out the numbers behind these goals is really useful to making sure you’re actually on course to meet them.

The best budgeting apps for UK creative workers

I discussed why tracking your spending is key to understanding your cash flow (and therefore getting some control over a variable income) last week, but there are other benefits to that process, too. When you know how much you spend, you know how much is enough. You know when you can stop, or say no.

As far as possible, I’d also like to get to these points above without doing work that I do not personally believe in.

Don’t do dogma

A line from our recent How I Make It Work interview with freelance journalist Lydia Wilkins sticks with me here.

“‘At the end of the day, you only have yourself to answer to.’ Regardless of having to pay your bills, keep to deadlines… if it ‘sits right’ – then that’s okay.’”

If you operate with integrity, then you avoid selling-out yourself, but only you can judge what that might look like.

The ‘starving artist’ trope comes from a belief system and, as with any belief system, there will always be a vocal minority of hardliners, who refuse to question the dogma out of some fear that the world will unravel. Instead, each of us needs to decide on our personal beliefs and principles around money and creativity – and make decisions accordingly.

There’s a broad, rich spectrum between ‘the starving artist’ and ‘the sell-out’

If you lean towards the starving artist axis then, contrary to the thinking of many, you’ll likely need to watch your expenses closely. What’s more, planning for the future and times of poor cash flow becomes even more essential.

If you lean the other way, gaining a higher income, then you may have more flexibility with your spending and insurance against the risks you take (some of which might pay-off handsomely). However, to gain true satisfaction from your work, you will likely still need some measure of your personal values built-in to it – lines you don’t cross. This might be to do with the ethics of the organisations you work with, the relative creative appeal of jobs etc. Knowing your values helps you to navigate the path.

The full spectrum – the options are much broader than many of us realise and the path you tread might change according to your priorities at the time

For instance, in my case, I am open to many different types of work. My main gig is music journalism, but I’ve written copy and advertorials, I’ve run events and managed projects, I’ve led degree courses and taught. But I’ve come to understand that if the only reason I want to take a job is the money – and I can find no other appealing features in terms of the work, my personal or career development, or the organisation I’m working with – then I am going to regret that decision.

Not everyone will feel that way – or feel they have the option to do so (particularly right now) – but that’s OK. Indeed, that’s the whole point. Creative Money is not here to promote the pursuit of untold riches, but simply to help you figure out how you can sustain yourself over the long term as a happy, creative person.

There’s a broad, rich spectrum between the tired clichés of the starving artist and the sell-out. Where do you want to be?

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Photo by Alice Dietrich on Unsplash

Creative Money Blogs include principles, resources and opinion pieces relating to personal finance for creatives.

How can we help you?

What issues are you facing? What questions do you have about managing your money in the creative industries? What would be most helpful to you?

We don’t have all the answers, but maybe we can find someone that does.

Send your questions and suggestions to creativemoneycontact@gmail.com.
We want to hear from you.
Categories
Blogs Opinion

You are not bad with money

Photo by Jp Valery on Unsplash

How stereotypes prevent us from sorting out our finances

Creative and financial ability need not be mutually exclusive. The pervasive idea that if you are creative, you are bad with money, yet those with the artistic sentiment of a doorstop naturally have a handle on their finances, is a harmful cliche.

Image credit (above): Jp Valery on Unsplash

I saw the above quote referenced in MoneyWeek the other day and, while amusing, it also struck me as a perfect encapsulation of the creative industries’ self-defeating mindset around money. We’ve all been guilty of it at some point, myself included. ‘I’ve never been good with numbers, I just draw pictures…’ ‘Pension? I can’t afford dinner…’ etc.

‘Natural talent’ is just a starting point – it is how we develop our craft that really helps us succeed. The same is true of our financial ability

We love the idea of ‘natural ability’ defining the destinies of the great and good. It allows us to buy-in to a bit of real life magic and marvel at humanity’s shared prowess. However, it also offers us a handy excuse for our own shortcomings – a get-out clause that says, ‘If we’re not born with it, we can’t do it… So I won’t try.’

My experiences in interviewing musicians and other creative types for the last 15 years have taught me that whenever we discuss ‘natural ability’ there’s a bigger picture being missed.

Take two famous examples of ‘natural talent’: Daniel Day Lewis and Jimi Hendrix.

Day Lewis made his big screen debut aged 14 in Sunday Bloody Sunday, which is undeniably impressive. However, he spent another 13 years studying and developing his craft on theatre stages before he landed his first major film role.

Hendrix? Hendrix really was an amazing guitarist, but he practised so much he wore his guitar while cooking. And on the toilet.

Whether we’re talking theatre or fashion design, ‘natural talent’ is just a starting point – it is how we develop our craft that really helps us succeed. The same is true of our financial ability. You are not inherently ‘bad with money’.

Burning cash. But remember you are not inherently 'bad with money'
Photo by Jp Valery on Unsplash

It’s not all or nothing

In the site’s first post, I discussed the stigma of talking about money in the creative industries, but also how harmful it is to view these two aspects of our lives – the creative and financial – as the antithesis of each other.

Instead, we should consider both our creative and financial abilities as different but complementary skills – both building blocks for the attainment of lasting happiness. In that sense, the most important question to answer is, ‘How can we sustain our ability to do the things we love?’

If you are making your way in these industries, you very likely already have the creativity and the drive required to figure this stuff out

In trying to solve this problem, learning to handle our finances can really help. The good news is that if you are making your way in these industries, you very likely already have the creativity and the drive required to figure this stuff out.

That might involve honing what you do to the point where you earn more money doing it; figuring out how to syphon off income when you have it, ready for the times when you don’t; or making a smart move to a more affordable location. The more you start to think about it, the more solutions you will find.

Everyone can do something to get nearer to their, er, happy place. And you’re not alone, either. The more ideas, options and resources we share here, the easier that process is going to get, so if you have questions or suggestions, don’t hesitate to get in touch. I don’t have all the answers, but we have a better chance of finding them as a community.

Most importantly, though, do not let yourself fall in to the belief that because your work is creative, you are destined to be bad with money, or that it is hopeless to try. If anything the reverse is true, you’re likely already better with it than most of your peers, because you often have to manage on less – and you’re certainly better equipped to work around your limitations.

If you can come up with ideas for your creative work – be it scriptwriting, or sculpture – why not redirect just a little of that energy to thinking creatively about how you could make this thing last? Can you be creative with money?