After over 30 years in the entertainment industry a few things have proven to be constant. One of the most divesting is the inability of a performing artist to control and maintain their money when they are making it regularly. Unfortunately this industry is created on hype, flash and perceived notions having nothing to do with reality. The neophyte comes into the business looking for a handout, a foot in, a little help so that someone else pays them, creates the hype around their music, manufactures a persona that the artist does not even understand and eventually makes the lion’s share of the profits.
You never hear of record labels going broke or managers going broke, just artists and we are the first to “cast the stone” calling them ignorant, thugs, low life’s and deserving of losing their money. Not once have I found any trade magazine nor DJ or talk show host attempt to educate the artist in the entertainment industry basic MAKING MONEY.
The easiest way to maintain your money is to establish yourself a budget and sustain it. So the perceived idea is that today’s HOT artists are literally making millions of dollars a year. Why does someone who makes millions need to budget?
The answer is simple – Not to retire broke because you mismanaged your money during your brief, high-earning years
Of course as an artist you are to busy to be bothered with keeping books and maintaining records for your taxes. You have to do that next video shoot or be on that next television program so that you can continue selling thousands of cd’s. Subsequently you should now seek a CERTIFIED FINANCIAL PLANNER.
You have a savings account and an account for your Mama but Planners emphasize planning for the worst-case scenario by putting away money in an emergency fund.
You are prolific you know that you have plenty of albums and ideas that you can produce so your money will be coming in for a long time. You’re young and ready to enjoy life now and not worry about the future; it is so far away anyway. Well let your Planner construct an insurance plan for you so that ALL future worries are already handled.
- Buy Insurance
- Life Insurance
- Disability Insurance
- Estate planning
Another way of keeping some of that hard earned cash you have made is by NOT getting involved in your relatives & friends investment ideas. That nail salon for Pookie will not work because Pookie has never run a business before in her life. Uncle Hershel is the best mechanic in the family but he knows nothing about inventory control, service etiquette or even how to reconcile the cash register every night. Mama Doonie can cook better than any restaurant you have ever been too, but she can’t pass the state required health mandates to keep a commercial kitchen. If the idea seems easy and you can’t understand why someone hadn’t thought of that investment idea sooner, you are going to LOSE YOUR MONEY.
Beware of the Investment Scam – this is probably the easiest way to lose your money. A get rich quick scheme almost always gets artists, sports figures, and dope boys. Hard work and consistent work are the tools to get rich with. If you don’t understand the stock market, DON’T PLAY. No one wants to help you make money; they only want to make money for themselves and ALWAYS use your money to do it.
Rappers, like other celebrities, are frequent targets for investment scams—not only because they make big money but because they often don’t pay close attention to their finances because of their busy schedules
Always be closely involved in your finances and educate yourself about money management, even if you work with a financial advisor. These are just a few common sense techniques to assist today’s artists.
Please don’t end up barefoot and broke.