Every individual needs a Financial Plan to achieve small, incremental goals to propel themselves from the starving-artist mentality.
Similarly, the Actors, Directors, Producers, Musicians, and other talented Media Entertainers too face such issues, where the difficulty to predict their income or perhaps juggling up with the multiple income streams and building an efficient relationship to money becomes complicated. Thus, need the right advice from the financial expert to live stress-free life comfortably.
Today, most artists believe that they don’t need to know about money management, but actually, artists, more than anyone else, need to know how to plan for the future and how to handle their financial peaks and valleys that they encounter in their profession.
Because when it comes to crisis, the only thing that makes any artist unsatiable is the flow of income. If they would have managed well at the beginning of their careers, then the chances of suicidal death due to money issues would be eliminated.
Artists have got to stop pretending that they can deal with finances, they need to understand that their earnings are for short period of time and to live with the luxurious lifestyle they need a regular source of income which can pay off their all such expenses like Beauty, Car, Rents, Salaries to PR, Secretary & others. These expenses are essential for artist but, they need to channelize it with Right Financial Planning & Budgeting.
With financial planning they are able to manage both their lifestyle and focus more on nurturing their talent rather than worrying about
‘If I book the part, then I could maybe pay off my rent, or could pay off my all the debts which I took from friends/family/relatives, etc.,..’
Conard Fowkes, Secretary of Actor's Equity Association, New York-based Union, said
"Actors won't perform well while worrying about their finances. It really becomes difficult for them to not work consistently week after week. They may be very well paid for a job that lasts 10 weeks. Then they're unemployed and haven't put any money aside."
Thus, need to put aside certain corpus for living a comfortable lifestyle in the turbulent times. Buying a luxurious car, Expensive cell phone, foreign tours, Gym and other expenses, plays the essential part in an artist's life. Such expenses are not for one time it keeps on changing & increasing with time thus, needs a regular update.
But for an artist their income is uncertain sometimes, multiple and managing them efficiently is what help any artist to perform effectively on stage.
A hit series can make an actor rich, but he could lose the job in a heartbeat. And a movie doesn't stay at the box office forever. Thus, need to put aside the most amount for such time. Even though an artist earns a lot from his/her work but it's not regular whereas their spending patterns are.
Renowned Actors like Late Sushant Singh Rajput, Aditya Narayan, Amitabh Bachchan and others faces Financial Challenges in their life stage. Even Mr. Amitabh Bachchan who once faced Financial Bankruptcy in his working career, in the year 2000,
"When the entire world was celebrating the new century, I was celebrating my disastrous fortune. There were no films, no money, and no company.” (As stated by him in his personal blog).
However, with the hosting of 'KBC' (Kaun Banega Crorepati), Amitabh Bachchan (The Big B) came back on the track and since then, he started diversifying his portfolio by investing in Stocks, Startup Businesses, Sports Team and other business ventures which generates regular income for him and his family.
Why Financial Planning is different for the artist as:
- They don't make enough income to save regularly like any salaried person with the regular full-time job
- They put aside too much in those instruments which are either tax-deferred or are close-ended, thus, stops them from redeeming the funds when they need the most
- They spend most of the time struggling for the new role, at that time their income is only through Advertisements which can help them in surviving but doesn’t build a regular cash flow.
- If they got a big break, then they spend a lot and save a little, thus need tools to track such spending and;
many other reasons, which stops them from being financially free after earning a lot of money and fame.
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