Investing your money as a music creator can be helpful for your career because of the way it protects your finances. In many cases, artists put all of their chips in one basket to progress their music. This can work, but in often times it leads to financial ruin. You are smarter than this in the sense that you see your music career becoming successful, but realize that you need a way to protect and grow your money in a more consistent way outside of your music. Here are 4 reasons investing is more important to music creators than anyone else.
1. Music Industry's Rapid Change
The music industry can be considered a volatile industry. This means that change happens all of the time. Your music career in most times will not be straight and narrow. There will be many days and years where you have no idea where your next check will be coming from. There will be other days where you are on top of the world making money hand over fist. A way to calm these ups and downs for your financial life can be through consistent stable growth by investing.
2. Lack Of Security
Having money invested to grow in solid reputable companies provides security. This security comes in the form of steady growth. Your money continues to grow because of the wonderful performance of the companies that you are invested in. Your music career can take a hard left turn on a moments notice. One day your song is at the top charts and you turn around a month later and five new songs have already filled your spot. This is not a problem for you because your investing has you covered.
3. Not Enough Diversification
Additional ways for you to grow your money other than your music provides diversification to your finances. Investments in different industries along with your music revenue provides two different outlets. You don't have to rely on one to do all of the heavy lifting for your financial growth. They complement one another in the sense that if one is performing less than ideal, the other will pick up the slack.
4. Need For More Passive Income
When you record in the studio, perform live, and create content for your social media this is called earned income. You have to physically do all of these things in order to earn money. This takes up your time and energy. There is a limit on how much time and energy you have in a single day. What investing does is work for you around the clock. Investing makes passive income. Money generated to you every second of the day whether you are making music, sleeping, eating, or performing live.
Conclusion
Artists need more stability than ever before. The constant change in the music industry and increased competition for attention is at an all time high. Investing provides financial stability for artists careers and for the remainder of their lives.