Going from place to place means you do not have a steady paycheck. This makes budgeting hard. You must track the money you make at each show. Note when you spend on food, petrol, rooms to sleep in, and more. This helps you plan, so you do not run out of cash.
Even with care, surprise costs pop up. What if you get sick and cannot do shows? Or did your car or guitar get broken? It helps to have some credit available for real crises.
Online lenders offer loans online for fair credit for those with limited credit history. Use these wisely just for real emergencies. Make more than the minimum payment each month. This develops a good credit score over time.
Managing Irregular Income
Musicians and artists do not get normal paychecks. You earn money gig by gig. One week you may play 3 nights and make £400. But the next you might just have one show for £70.
To budget:
- Go week by week.
- When you get paid, put some in savings.
- Figure out average costs for food, petrol, housing, and gear.
This helps see what is left for other bills. It takes work, but staying on top of the ups and downs helps your money go further.
Saving Where Possible
Get into the routine of saving something from every check. Pay yourself first before spending on the fun. Even small amounts of £10-20 add up over time. After 6 months, you could have £500 or more saved up without much sacrifice.
Try putting savings in a high-yield account you can access online. Do your research to find reasonable rates. This lets your money build interest while still available if really needed.
Building Credit Over Time
| Loan Type | Interest Rate Range | Loan Amount Range | Typical Loan Term |
| Personal Loans | 10% – 30% | €1,000 – €25,000 | 1 – 7 years |
| Payday Loans | 200% – 300% APR | €100 – €1,500 | 2 weeks – 1 month |
| Car Loans | 8% – 25% | €5,000 – €50,000 | 1 – 5 years |
| Guarantor Loans | 30% – 50% | €1,000 – €15,000 | 1 – 5 years |
| Credit Union Loans | 8% – 12% | €500 – €20,000 | 1 – 10 years |
Even with good planning, surprise expenses pop up. Maybe you get ill and miss shows Or have car troubles and lose gigs. Having some credit available helps in crises.
Use these just for real emergencies. Payback quickly in full. Doing this builds your credit score so you can qualify for low-rate loans down the road if ever needed.
Budgeting on the Road
To budget well:
- Track the costs of being on tour.
- Use a notepad or app to write down what you spend.
- List things like petrol, food and takeaway, hotel stays, and equipment repairs.
- Include occasional items like clothes, medicine, postage, and phone credit.
Tally up weekly and monthly costs in these areas. See where you overspend by comparing. Setting spending caps can help you stick to budgets and save more month to month.
Food and lodging are necessities that add up. Pack snacks and shop at markets to save on dining out. Look for affordable pensions or B&Bs to stay at instead of hotels. Ask other bands for recommendations.
Saving for Downtime Between Gigs
The inconsistent income of musicians makes saving a challenge. But putting some money aside helps you manage. Try to save a portion of each check you earn, even if small. Save more after bigger paydays.
Over 6 months, you could stash £500 or more. This gives a cushion for periods with few gigs. It also builds an emergency fund for surprise costs like illnesses or car repairs.
Long-term savings vs. immediate needs
Keep emergency cash on hand for these monthly costs during lean times. Additional excess funds can go to longer-term savings. This pot builds security for bigger future plans – a better guitar, studio recordings, expanded tours, retirement even! Revisit plans often and add more to these savings whenever possible.
Look into accounts designed for savers, not spenders! Many UK banks offer online options with higher interest rates. These let you earn extra money that builds your savings faster with little added effort.
Income Diversification
Performers rely mainly on music sales and concert revenue. However, additional income streams help manage uneven cash flow. Sell merchandise like t-shirts, albums, guitar picks and other branded goods at shows and online. Schedule live streams or post exclusive content for fan club members.
These extras earn money during downtime between gigs. And give fans more ways to support their favourite acts. Budget some upfront for production costs, but merchandise and exclusive online content quickly pay for themselves.
Expanding skill sets (teaching, workshops)
Consider leveraging your talents and fame by coaching aspiring musicians. If interested, qualify to offer lessons, workshops or online courses. Musicians can earn solid part-time incomes this way, sharing their expertise while promoting their own brand.
Research rates for your area and skill level. Set schedules wisely during slower periods so teaching does not strain touring and recording priorities. But the extra earnings and exposure make this option worth exploring.
Benefits of creating multiple income channels
Too many musicians rely solely on record deals or the next big radio hit. But diversifying income across business ventures hedge against market ups and downs. This includes sidelines like teaching/workshops, branded goods, fan club subscriptions and online gigs.
Multiple income streams allow flexibility if you get sick and cannot tour or need a break from the road. Steady cash comes in even when not actively touring or recording. And you expand awareness – fans engage more when you offer varied channels to connect.
When Cash Runs Short?
Making ends meet is hard, especially with spotty credit. Past money problems may mean low scores from credit checks. This can block you from loans with fair rates.
Do not lose hope! You can secure loans for poor credit. They may charge higher interest but provide access to vital funds.
Research carefully and know the costs going in. See what portion of the loan covers fees versus cash in hand. Make sure repayment terms fit within your budget – a too-high payment each month helps no one.
Conclusion
Many artists sell products, too. This includes CDs, shirts, hats, and other gear with your name. Money from this can help between shows. Carry a stock to sell at performances. Fans love taking home a reminder of seeing you live!
You can likely open a basic savings account online. Comparison sites can help find good interest rates. The more you manage to set aside, the more secure you will feel on the variable income of a travelling musician.
Leo Allende is a Senior Content Editor at Everydayfunding. He is dedicated to give his readers the well-researched and fact oriented blogs with the in-depth study of the UK loan marketplace. He has won many prestigious awards in his long 13 years of experience while working with many reputed financial firms.
Leo Allende became the passionate of UK finance and loan market after joining Everydayfunding where he parts in decision-making body. Leo has done Doctorate in Finance.
