BREAKALEGG

Obviously the first step is to not overspend. Then take a few steps to reevaluate your personal finances. Maybe even setting up an afternoon to focus on these issues can really help change your future:

First make sire you know exactly what your dept or assets are. Make a list of all the liquid cash you have, including checking and savings accounts, then property, car, salary (only if you have a stable day job)…etc. And then of all your debt, loans, morgages…and check your credit report to make sure there isn’t anything you missed.

Your first priority should be to pay off all your debt. Whatever you do, if you can pay more towards getting rid of your debt (especially the ones affecting your credit score and credit card debt), do it!

The next step is to make a decision of how much money you can allocate every month to a savings account. As an actor there are always new expenses: a minor (or major) plastic surgery, new headshots, traveling to auditions…etc. So you should always have a security blanket and enough cushion to afford these expenses and still save up for your future. So if you are in a good situation economically (all your debt is paid off) then always put one third of your income in a savings account meant for emergencies or investments in your career.

If you are still in the process of paying off the debt (and I assume you are already putting extra towards paying it off) then start with a 10% or your earnings. But make sure you exercise the discipline every time you get paid! It’s the only way to ensure you will always be covered.

As a last step make a list of daily, weekly or monthly expenses and look for little things that you can cut back on. The daily starbuck grande-latte, and muffin… the nighly movie rental and candy, the after-work beer at the pub….you catch my drift. Ultimately they amount to a lot more than you think. Just do the math and try to adjust your spending habits to your new savings plan.

Posted on October 7th, 2008 under Money and Legal Issues •  Print This Post •  Email This Post • RSS 2.0 feed • Leave a response, or trackback