Do you want to be able to make music whenever you want and live a life free of financial pressure? Of course you do! Knowing these five simple tips will help you build wealth so you can do just that. Being smart with your finances will allow you one day to purchase a car like the one above instead of renting it for the day just to take a picture for your instagram.
Here are 5 simple tips to become a wealthy musician:
1. Pay Yourself First
When it comes to all of the money you make. Take 10-30% of the total amount for yourself. Your expenses are you paying other people money in the form of food, shelter, clothes, taxes, and other bills. When it comes to building wealth learn to keep at least 10% of your income for yourself to put it towards earning more money.
2. Make Your Money Multiply
Making your money multiply can come in many different forms. A few ways are having a stock portfolio, buying a rental property, and lending money to someone that will be able to pay you back with interest. An important rule of thumb when it comes to putting your money to good use is trusting people who are experts in what they do. For example there is a story of a man who is a brick maker who had an idea of buying jewelry that you and him will sell for a profit. He goes and buys the jewelry which ends up turning out to be worthless pieces of glass that he was swindled into buying. You and him both lose your money in this venture. The moral of the story is do not invest with the brick maker to buy jewelry. Invest with the brick maker to buy bricks.
3. Control Your Expenses
You may feel tempted to buy new clothes, go out for a fancy dinner, and buy a new car with this money. In order to be wealthy your expenses cannot increase with your income. As your income increases your expenses have to stay the same. If your income and your expenses increase you are not building wealth you are staying the same.
4. Guard From Loss
You may be tempted to invest in a get rich in 7 days plan or go to the casino and put it all on red to double it in minutes. The investment you choose should be able to recoup the initial investment you put in. Of course you cannot one hundred percent guarantee that you will not lose your money in any endeavor, but you can absolutely be aware of certain risks. If there is a chance that it can all be lost by promising a big payout it may be better to keep looking.
5. Increase Your Ability To Earn
The more value you provide to the market, the more you will be rewarded. It is that simple ladies and gentlemen! The more skill, knowledge, and expertise that you can provide to others the more money you will be rewarded. When you look at your music career if you have the ability to give your following great music, merchandise, content, and live shows you will be rewarded in proportion to what your fans get out of it. Continue to improve all of your skills with marketing, selling, product development, and fan relationships. Think of a popular venue for concerts. If you have great music and millions of people behind you, the venue will be more inclined to pay you than someone who has terrible music and a couple of fans.