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Financial Planning 101 for Aspiring Actors – The Complete Guide – NoHo Arts District

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Creating a financially secure life is one of the most difficult tasks. To get started, you need to understand where you are and where you want to go.

Plus, you’re your own boss, which means you’re also responsible for finding the right financial path to get you where you want to be. You should also make sure that you stick to the chosen route without deviating.

It can be a challenge, but how do you deal with it when you’re an actor? Actors tend to have unstable incomes, which makes managing finances even more difficult. Regardless, here’s a guide to financial planning for aspiring actors;

Get a money management account

Also known as CMAs, cash management accounts offer account holders an alternative to traditional savings and checking accounts. With this account, you can make payments and manage your money while earning interest.

Different institutions offer different types of money management accounts. However, most of them come with debit cards, checkbooks, or even both. One of the advantages of these accounts is the minimal banking fees.

You will be able to safely store, manage, make payments and earn interest on your money with a cash management account. You will also enjoy all the services of traditional banks.

Budgeting

As mentioned above, a higher percentage actors don’t make a lot of money. Also, their income tends to be inconsistent. This means that it is very important for them to understand where every cent of their money is going.

The first step in budgeting involves writing down everything you buy or any bill you pay for the month. This should include everything, even a $1 purchase. At the end of the month, you can see where your money went and what you need to change.

After that, you need to make a plan of your expenses for the next month. It can be difficult, but try to stick to the plan as much as possible. Keep adjusting your plan after each month to come up with one that works and helps you save money.

Economy

Sticking to a monthly spending plan can be a daunting task, especially for actors who don’t have a steady income. So how can they stick to a budget if they don’t have a steady income? That’s where the savings are.

If you stick to your own spending plan, you will realize that you have extra money left at the end of the month. This money should go into your savings account. Depending on your financial institution, you may be able to get a savings account tailored to your needs.

By doing this, it will be easy for you to stick to your spending plan even if you don’t have a steady income because you will always have money. You can even save more money if you work somewhere that takes care of everything.

Tax management

This is one of the most confusing things, not only among actors, but also for everyone else without a financial background. Tax laws will change just when you think you understand what they are, which complicates things.

If you have enough money to hire an accountant, then this should be the least of things for you. However, if you don’t, look for accountants who are willing to donate some of their time to help other people.

The bottom line is to make sure you are prepared for tax season and avoid it tax scams. You don’t want to wake up at the end of the financial year with a huge fine because you owe money to the government.

Pension

No matter how old you are or where you are in your career, you need to plan for your retirement. It’s part of financial planning whether we like it or not. As an actor, you may reach a point in your career where you can no longer act.

Fortunately, a retirement account is one of the easiest you can open. Since most actors work as freelancers, they do not enjoy the benefits of a 402(k). However, they can open a retirement account for as little as $5.

A retirement account will earn you interest. Eventually, you’ll be ready for retirement and able to live without worrying about paying the bills.

By following this guide, you will be able to achieve financial freedom as an actor and live without worrying about what tomorrow has to offer.

Financial Planning 101 for Aspiring Actors – The Complete Guide – NoHo Arts District

Source link Financial Planning 101 for Aspiring Actors – The Complete Guide – NoHo Arts District

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