Many musicians do struggle financially, but not because it is hard to make money in music business. Most musicians choose not to learn or do the simple things that make financial success possible. They might say they want to make more money, but their actions prove otherwise.
Being a musician and releasing albums that go platinum does not guarantee you that every album you release will be a hit, that is why it is important to save most of the money you make for rainy days. Too many artists go broke because of poor financial advice, bad investments, legal disputes, tax arrears and spending recklessly.
As a musician, you are in business of providing massive value to fans, bands, record companies, promoters, publishers, booking agents and other entities in the music business. “Providing value” means helping these people/companies get what they want. The more value you provide, the more money you earn.
The “loliwe” hitmaker, Zahara is one of the artists that used to make songs that almost everyone liked. Today as we speak this woman is broke. She owes a R1.9 million loan that she is struggling to settle. Her account is allegedly in 6 months arrears. The bank is threatening to auction her Johannesburg home to recover some of the money she owes.
It is important to manage your finances as a musician. Your first step should be creating a budget. Even though the flashy stuff may seem exciting, it can cost you more in the end. So first consider the necessities as well as any professionals who will help you move forward efficiently. Save your money. The music industry can be intimidating at times, and it may almost feel like peer pressure to do certain things, act certain ways and spend money on items that aren’t necessarily needed.
Managing money is not easy in any industry. There are tons of temptations, but staying true to yourself will allow you to focus on what really matters. Do not allow your industry to sway your personality because that can dig deep into your pockets.