7 Smart Money Lessons for Musicians

Article by Alessa Ray

Money Lessons I Learned from Rich Dad, Poor Dad

How can I make money work for me?

  1. Money or the lack of money is the result of your emotions.
    A lot of our financial decisions are made through emotions. Two emotions that control people’s financial life are fear and greed. The fear of not having money creates the worry of desperately seeking money, typically from a job. Have you ever fantasized what to buy before you received your paycheck? We get into this rat race of working, getting paid and then spending money to pay bills.
  2. Work to learn.
    Work to learn a skill not simply a paycheck. If you learn highly valuable skills, they can be very profitable for you in the future. You get a paycheck while learning and practicing your skills. In case of a musician, sometimes it might be hard to get cast in auditions. Nowadays there are a lot of things available online. You can offer your skills on websites such as Soundbetter and Fiverr as a producer, singer, mixing engineer or instrumentalist. You can also create your own band and perform at corporate events. Be resourceful and use your skills to refine your craft and make a profit. Don’t waste time on jobs that are not going to make you grow.
  3. The rich don’t work for money. They make money work for them.
    What’s the best way to work smarter, not harder? Build systems that generate money. Invest in your assets to get ready for your future. For musicians, invest in your music by making an album. Consider music licensing. Remember that you get paid upfront and then you get royalties. This is working smart, meaning you are creating passive sources of income. Money works for you in the future. You can also make online courses (skillshare.com, udemy.com) or sell merch (redbubble.com, teespring.com). If you want to create online courses you will probably have to work hard planning your content or even investing on a good camera or outsourcing work to get a professional quality video. Today, YouTube and podcasts are a great way to generate passive income while delivering value to your audience.
  4. You come first.
    The money you make is not really “yours”. Once we get our paycheck we have to pay bills, living expenses, rent, car, taxes and if there’s something left, we save. The money is not ours if it’s not in our possession. The richest people in the world delegate others to pay for their luxuries. Millionaires spend money as if they are broke; they get investors to invest in their business. What if you applied this concept to your DIY music career? What if you could earn someone’s trust to invest in you? 
  5. You become what you study.
    Most of us want to be successful artists. To attract success, you have to study success. Who do you look up to? Who’s your role model? Find out what they did and study them. Your environment is extremely important for your growth as well, “your network is your net worth”. Skills require time and dedication. If we want to become successful in the music industry, we have to study successful people.
  6. Become wealthy, not just rich.
    Many people are making lots of money however, they are not wealthy. The difference is in how they use their money. Wealthy people invest in assets that will give them value in the future. Rich people buy mansions and cars. Rich people invest in stocks and real estate. The wealthy uses money to create money-generating empires. Music creators can invest in making quality content that can be monetized.
  7. Become financially literate.
    Many musicians have limiting beliefs towards money. How can we change this? It’s very important to understand the basic structure of how money moves in the world. The average millionaire has 7 streams of income. How can a music creator become a millionaire? (YouTube, podcast, streaming, music licensing, touring, merch, online courses, and more). Build and invest in your assets during your music journey. Now you’re on your way to success.
Article by Alessa Ray
cover image Morning Brew

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