But I am going to ask you to try to start saving 10% of all your income. Don’t try to look back at the end of the month and put aside a lump sum. Literally save 10% of all money coming in. You sell a painting for $200, save $20. You make $25 busking in the street, save $2.50.

Once you’ve got that down, you have to put that money somewhere.

So let’s say for the first month, you put it in a jar. Okay, cool. It’s in that jar. Next month, there’s more money in the jar. Next year, even more money.

For someone who’s never saved, this might seem fabulous. And it is. No savings to SOME savings gives you a safety and a financial cushion.

But for the long term, the jar is not a great place for your savings. Obvious problems: 1) easy to have it stolen 2) easy to dip into it. But how about a not-so-obvious problem…. with each passing year, that dollar loses value.

Let’s say for the sake of argument that ,right now, a loaf of bread costs a $1.
And let’s say for the sake of argument that every year the price of bread goes up 5 cents.
So in 30 years, you decide to retire. Or your health forces you to retire.
But no worries, right? You have savings! You dip into your jar and pull out money for bread.
Except bread is now $2.50. In that jar, without earning interest or gaining value, your dollar can’t even buy half a loaf.

Inflation is the enemy of the saver. You must ensure that your savings are always beating inflation.

So some options!

A savings account at the bank is the first place people start to save. This is great. Unfortunately, your savings account rarely keeps pace with inflation.

There are, of course, other savings accounts. Places like ING Direct offer a much higher rate than a typical bank, but still probably not getting ahead of inflation.

You need to speak with a trusted financial advisor and begin looking at an investment portfolio that will grow your money. They can help you assess your risks and potential gains.

As a struggling artist, owning a home might seem like the cherry on top of your artistic dream. And for many, it is. However, depending on your lifestyle and plans for the future, renting really might be the better option.

You frequently hear people talk about home ownership as a great investment. It really can be. It can be an income provider if you rent it out. And homes do tend to go up in value, so if you intend to sell it or leave it to your children, this is a great acquisition.

However, if you are intending to use it as a retirement plan, you need to give this some more thought. Homes are an expensive retirement plan.

Now, of course, you have to pay to live somewhere and it’s nice not to have a landlord, but with a house, you also have to pay for property taxes, insurance, lawn care, the new roof, the awesome refrigerator with the ice maker and so on.

And then what happens when you do retire? If this house is your sole retirement plan, that means selling it to be able to live out your final days renting anyway.

On the other hand, if you pay rent and invest what you would have spent on a down payment, lawn care and the new roof, you will provide yourself with options in your retirement.

Conventional wisdom might say that home ownership is the smart investment, but to know for sure, run through the math with a certified financial planner and see what really makes sense for you.

The real American Dream is having money to live your dreams.

 I recently read an article about a busker with no insurance. Their stated goal was to stay healthy enough to play their instrument until the day they dropped over dead. There was no plan B.

 A minor injury or illness left untreated because you don’t have insurance can lead to a serious illness. A serious injury or illness that drives you deep into debt can quickly destroy your dreams of an independent artistic life.

 Health insurance is a must.

 If you are healthy and can afford it, private insurance is the option with the most flexibility. You have a choice between an HMO, PPO/POS or HSA. Private insurers can charge a high cost for a pre-existing condition, but many now will bring you on board at the same rate with the restriction that they won’t pay for treatment of a pre-existing condition for the first year of coverage.

 Most Americans with health insurance are covered under a group plan through work. Just because you are self-employed, that doesn’t mean that you don’t still qualify for a group plan. Many local and national artistic organizations and unions offer a health insurance plan including The American Federation of Television and Radio Artists, Actors’ Equity Association, The Freelancers Union, and Media Bistro. One main benefit of group plans is that they do tend to allow pre-existing conditions.

 If even group rates are too expensive, look into federal and state plans based on income.

 While I sincerely believe that some form of heath insurance is an absolute must, if you truly can’t afford it and can’t get into a low income program, please find a way to have all illnesses and injuries treated. Most clinics will provide services on a sliding income scale. Find a way to get treatment before a small issue becomes a much more expensive issue.

 The Artists’ Health Insurance Resource Center has done an amazing job of compiling health insurance options by state. Many major cities have even more options. Visit their website for a comprehensive look at what is available. It is their mission to make quality, affordable health insurance available to every artist in this country.

 Don’t just assume that it’s not an option.

Even with the new design, Wammo’s site is still cooler than mine. But, really, that’s as it should be.

I hope that you find this blog entertaining and informative as it develops.

I get great joy from working with incredibly talented writers and musicians to bring their art to a larger audience. My goal is always to build a solid life/work balance that will enable them to live off their art for the rest of their lives.

We are all very lucky that such great talent exists in this world. As the market for art changes, it is important that we each do our part to keep art alive.