How Important Is Financial Literacy In The Music Business
Financial literacy is one of the most important things that entertainers need to pay attention too and often neglect or is simply not aware off. The entertainment business is a fast pace business and if you are not careful or not paying attention, one’s finances may be depleted without even noticing. I would suggest that an accountant or a financial advisor or both are hired. I have observed many times, once an entertainer achieves a certain amount of success financially; they are not aware of how to spend/ invest or save and they in turn they just spend on friends/ clothes/ cars/ jewelry and other frivolous things without keeping account of their finances, which can be catastrophic if not monitored.
I am a firm believer of hiring an accountant. Many entertainers are not aware of their cash flow/ expenditure or even budgeting each month/ even bi annually and annually. Accountants assist by preparing asset/ liability & capital account sheets and analyzing information
Financial advisors can really assist by choosing the best financial products that meet the needs for the entertainer currently and for the future. A financial adviser advises on the right investments, savings, pensions, mortgages or insurance products which are essential. Entertainers always need to think of the future as one can’t sing/ act/ dance forever. Be proactive and take steps to secure your future.
Written by Jelan Cumberbatch- Edited by Kalesh Forde. Visit www.jelancumberbatch.com for more information