Navigating Financial Challenges and Finding Solutions for Artists and Entertainers

Artists and creators know that when projects take years to reach completion, income can be inconsistent and unpredictable. And when paydays are sporadic, it can be challenging to build a financial cushion.

To maintain your finances during pauses in income, consider saving as much money as possible—potentially up to 40%-50% of your income—during lucrative phases of your career. In moments like these, it can also help to have supplementary sources of income, such as investments that provide regular payments. Another strategy to consider is placing your money in low-risk, low volatility savings and investment vehicles—such as savings accounts, money-market accounts, and bonds—that can be converted to cash during lean times to help you cover short-term needs.

Many artists and creators build a team or support staff—including agents, publicists, coaches, CPAs or other professionals—to help manage their success while they focus on their craft. If you’re bringing in support, it’s important to establish priorities and a budget and to continually evaluate the structure and size of your team against those factors.

Consulting with an attorney and a financial advisor, who has extensive experience advising professionals in the creative industry, can be a sound first step in developing a game plan to support your career. By working with an attorney and a financial advisor, along with your broader team, you can receive professional guidance on compensating the team around you, budgeting for their services, and ensuring their contracts are in your best interests today and in the future.

If you have children, they may be aware of your wealth. It’s also common for them to hear about it from friends or the internet. In either scenario, it can be helpful to teach children basic money management principles, such as the importance of saving or following a budget, to increase their chances of achieving financial independence as they grow up. Many families find that the earlier these discussions take place, the smoother family dynamics can be. 

You also may find yourself fielding financial requests from family members and friends. While it’s often difficult to say no, it’s important to consider the precedent you’re setting and whether you can support multiple requests over sustained periods of time. For many, recurring gifts can lead to financial strain that affects one’s career. When having financial conversations with children, family and friends, consider involving a financial advisor. They can offer expertise and wisdom on how to approach these situations in a responsible way, so you and your family can set boundaries and build resilience.

For artists and creators, success and affluence are often achieved at a young age—well before most stars start thinking about headier issues like impact and legacy. But don’t put off these important examinations until you reach a certain age.

Finding a purpose outside of your career, such as engaging in charitable work or pursuing business opportunities, can make your ascension more rewarding—both mentally and financially. Charity work and entrepreneurship have the added benefit of multiplying your network. They can bring you closer to people and groups who can help achieve your goals and expand your impact—or imagine new possibilities.

If, and when, the time comes to begin your philanthropic journey, a financial advisor can help you understand your options, define your goals and determine the strategy that best fits your vision.