Wednesday, November 25, 2009

How Will You Survive in a Weakened Economy?




Steve Raybine:



Blog #23:



How Will You Survive in a Weakened Economy?

If you haven't figured it out already, we are all suffering through a weakened global economy. During the last year, financial markets and many banks throughout the world have suffered significant losses. Many people have lost their jobs; numerous businesses have been downsized or have gone bankrupt; home foreclosures have escalated; personal savings and investment accounts have decreased substantially and many people are low on cash and are stressed-out, irritable, depressed and afraid of their economic situation.

The music industry, like many other businesses, is not immune to feeling the negative impact of the current worldwide financial situation. Although there has been much progress made within the financial sector, thanks in part to our current administration's foresight and decisive actions, there's been much speculation as to how long the effects of last year's financial disaster will be truly felt. As a contemporary musician, what is your plan for economic and musical survival during these tenuous times?



For most of us, we are swimming in uncharted waters. Unless you've lived through the Great Depression in the United States, this is a new and very distressing experience. For musicians, if some of the opportunities of making a living wage in music would no longer exist, what are the options you should consider in order to secure your financial situation? Considering the monetary fluctuations we've experienced within the global economy, this is no longer an implausible scenario.

The following suggestions may prove helpful to you and others in the future:



1.) Place a moratorium on unnecessary spending.

This is not the time to be making frivolous purchases--forego impulse shopping. Spend your money on the things you and your family need. You will undoubtedly have to delay some significant purchases, so be frugal with how you spend your money.





2.) Save as much cash as you are able to.

You will need hard cash, not just money in stocks; mutual funds; etc. I recommend that you stockpile some money or place it in money market accounts--cash in hand will still get the job done.






3.) Reallocate the money (if necessary) in your retirement account.

Many musicians may not have a retirement account, but if you do, consider readjusting your financial portfolio in order to minimize excessive money loss (if relevant). If you don't have a retirement account, you should seriously consider investing in one.






4.) Try to sell some of your unused musical equipment.

Now is the time to do an inventory of your unused or even outdated equipment. If you can sell it to someone and make some quick cash (even at a reduced rate), you should do so. If you make the sale, save the money for essential items only.






5.) Decrease your driving.

Driving equals gas and gas equals lots of money. Drive only when you need to, not just when you want to.






6.) Postpone a vacation.

Perhaps now is not the best time to take a personal or family vacation. Vacations cost money--money for travel; lodging; food; entertainment; etc. Put you money towards more conservative things, such as necessities, not luxuries.






7.) Pay off your debts as quickly as possible.

If you've accrued excessive debt, you need to pay it off as soon as you can. Cancel your credit card(s) (the ultimate temptation) and replace it with a debit card.






8.) Accept any gig (that pays money) that you're offered.

Now is not the time to be an elitist musical snob and turn down gigs that actually pay money. If someone offers you a bonafide engagement, I recommend that you accept it. Alternatively, this may not be the time to accept gigs for free, which I consider to be a dubious and ill-conceived situation at any time.






9.) Prioritize your bills.

You may need to pay your most pressing bills before some of your other bills. Remember: getting behind in your debts is always a bad idea, however.






10.) Exercise and stay healthy.

In this difficult economic time, maintaining your physical and mental health should be a priority. Take care of yourself so that you can take care of your responsibilities.
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