Everybody On Top
Tags: artists, independent artists, career, 24/7 customer service expert, discipline, music, self-development, discretion, asset strategy
Contributing author: Carl Fletcher: http://www.linkedin.com/pub/carl-fletcher/2b/305/b44/CTASInc@twitter.com/ http://www.facebook.com/fletchercarl
Everybody On Top is a ten week installment helping independent artists identify alternative paths to a mega career destination. Previous articles were Path 1: Accountability – Take responsibility for your actions and Path 2: Discipline – Working for what you want. Path 3: Acceptance –Acknowledging the inevitable. Path 4: Humility – When you are wrong, you are wrong. Path 5 Forgiveness– Let it go or die unhappy. Path 6: Generosity – Putting others first moves you forward. Do more. This week’s article will focus on Path 7: Discretion – Protected hook ups lead to seven large bank accounts. Path 8: Resilience – A secret weapon of successful people. This article will focus on Path 9: Providence– Frugally meeting financial needs consistently in your career with four critical steps.
Artists need to advance their careers to find a better quality of life. Artistic career advancement requires capital investments. Capital investments are those monies spent on fixed assets. Equipment, costumes, supplies, PR, etc., are all fixed assets required for your career. For our purposes, capital investments mean frugally meeting financial obligations in artists’ careers without their personal life suffering. Carl Fletcher, a certified financial consultant advises artists to consider using the four step approach. Fletcher believes people will be successful in handling their financial matters using these four critical steps:
Step 1 – Spend less than you earn. Create a budget. A budget identifies how your resources can be allocated. Resources are monies that are available for tending to life’s needs or impulse spending. Tip: Less impulse spending = greater resources.
Step 2 – Avoid the use of credit. Pay cash whenever possible. Allocate resources to gain assets. This is the process of allocating your resources responsibly. For an example, artists may need special equipment or a PR campaign. Resources have to be allocated for these business expenditures. Remember, although these expenditures may be tax-deductible; they are not assets.
Step 3 – Build liquidity (Accumulate cash or assets that can be quickly turned into cash). Assets are anything that increases in value. A percentage of your assets or monies should be earmarked for future endeavors. Plan to meet these transactions without occurring debt.
Step 4 – Identify specific long-term financial goals. Consistently set aside a percentage of your resources for this goal. Sometimes sacrifices must be made to meet future financial goals. Do not sacrifice your ability to meet your current financial obligations. Determine what resources will be allocated to acquire assets. Identify any future potential financial transactions. Tip: Pay yourself first.
Licensed in several states, Fletcher has seen people become successful in handling their financial matters after setbacks. Given the nature of artistic industries, artists often need recovery from similar financial setbacks. It is not uncommon for artists to go extended periods of time without cashing a royalty check. This does not mean bills do not have to be paid in pursuit of the creative process. It does mean that artists must employ careful financial planning to thrive during a financial setback. Remember every situation is different. Artists in control of their careers generally reap greater rewards. They also control the direction of their career. Astute artists understand the pay structure of their industry and plan accordingly.
Carl Fletcher is President of Kingdom Alliance Services Incorporation. Kingdom Alliance Services mission is to empower everyone with the education and empowerment necessary to make sound financial decisions to improve their lives using a holistic planning approach based on biblical principles. His corporation’s purpose is to help people change their financial paradigms by addressing a holistic approach concerning their lifestyles and building wealth. Fletcher indicates his company’s primary belief is based on this scripture – Hosea 4:6a: “My people are destroyed for lack of knowledge.”