How creatives can budget for regular income!

Welcome to From Creative Passion to Profit. And today, I'm going to be

diving into a big challenge for so many people in the arts and

creative world. Budgeting. Budgeting. When your income feels

like that roller coaster. One month you're top of the world, your book's

solid, everybody loves you, you're selling commissions before we pack

venues. And the next month, it's quiet. It's like

crickets. Does that sound familiar? Well, you're not alone. It's

irregular. Erratic income is a reality for so many

creatives. But there's good news. With a little bit of planning,

you can make it work for you instead of against you. And

today I'm going to be sharing three simple steps to help you build a

budget that accommodates and fits your lifestyle so you

can take control of your finances and keep thriving

creatively.

Now, here's our game plan for today. I'm going to figure out your

baseline expenses, what selling you will be doing. Number two,

build your buffer for those slower months. And thirdly, use

a simple but flexible budgeting system. Let's start with step one,

figuring out your baseline expenses. Now, those baseline

expenses are the essentials. Those things that you need to

make sure you're covering every single month, irrespective of how

busy or quiet you are. So think about your rent, your food,

utilities, Internet, the basics that keep you

ticking over, the basics that keep you going. Now, take a moment

to write them all down. Grab a pen, open a notes app,

or check the link at the end. And there is a free

budget whiz plan that you can tap into to use.

Now, if you don't like online, you prefer to do it on pen or paper.

Grab that sheet of paper and now write those items down.

Put the headings there, put the amount, if you have no idea, then check

your bank statements, check your credit card statements. But let's assume that

baseline figure comes to £1,500 per month. Now, that's your

target. That's the amount you need to make sure you generate by way of

income, just to keep your head above water, to keep you afloat.

Now, fixing that number, having an appreciation of what that number is, will give

you a clear and solid foundation to work from. Step two,

build yourself a buffer. Now, once you earn your baseline, it's

time to create that safety net. Now, the buffer is the thing that

covers you during those quieter months, of which there will be some.

Every single business has quiet months. Every single business has

more active months. When income slows down, you want to make

sure you can Cover those quieter months. Think of it like a

cushion, a financial cushion. Now let's see how it

works. When you're having a busier month, make sure you get a

discipline of putting aside a little bit extra. Even if it's a 50

pound or 100 pound here, it accumulates and it builds up over

time. What's your target? What's your aspiration? Well, my experience,

my advice would be save up to make sure you've got at least three

months worth of baseline expenses. So that means your target

dramatic, that might sound impossible, but it's not.

Get into the habit of putting money aside. Get into the habit of

squirreling away that money. Get a separate bank account, get a separate deposit

account, but make sure you accumulate the that cushion. That

doesn't have to happen overnight. Think small, but it's consistent

steps that will get you there. Now, if you've finished a big commission, a

piece of work, great, celebrate and spend some. But make sure you

put something away. The future, you will thank the present you

for this. Now step three, use a simple budget. Now this

is budgeting without the stress. It's not a straight jacket, it's a discipline.

And I promise you folks, it's a fantastic discipline to get

into. Now, we're not talking about complicated spreadsheets. If they're not your

thing, try this simple approach. Divide your income into

three easy categories. Number one, the essentials.

That's for things like rent, bills and food. You want to eat and you don't

want to be homeless. These are the non negotiables.

Secondly, fun. Yet you need to make sure you build into your life

a bit of fun. Fun is important. It's a great stress reliever. It could be

a night out, could be effectively a workshop, a doll's

workshop, meeting up with friends, whatever, it's your creativity

fuel. And thirdly, it's the savings. This is your

buffer and it helps towards those long term goals. Could be a

holiday, could be taking time out, could be some training that you've got your

eye on, buying new equipment or funding your next project. You

decide what that should be. Now, the beauty of the system is

flexibility. One month you might allocate more to fund because you

had a great run of work. It's been prosperous for you. Another

month you might focus on building up your buffer. It's about

adjusting and making those modifications as you go.

Now, don't use the word homework. But let me give you some homework. Some things

I want you to focus on. Two things. Firstly, write

down. Calculate what your baseline expenses are.

Write them down so you know your largest commitment. And number

two, start tracking. Not quite Davy Crockett style, but

start tracking your income. It doesn't have to be fancy, but just get into the

habit of noting down what's coming in and what's going out. I promise

you, once you start connecting with those numbers, you will start to feel more

in control and the anxiety will diminish. Even these

very small modifications, these small steps will make a massive

difference. That's it for today's episode, folks, of From

Creative Passions to Profit. I hope you're feeling more confident about

tackling those ups and downs. Remember, budgeting does not have

to be a headache. As I mentioned, check out Budget Wiz.

We do have a free plan. You can do your planning online.

With the right tool and the right mindset, it will actually give you more

freedom to focus on what you love.