Question from a community member, Rick Dennis
Hi, I wanted to suggest an episode of the podcast about financial literacy. With kids struggling to make a career in music and so many entering alternative careers to music, this information might help them get back on track to having a life more filled with music. I know I wish I learned it earlier! -Rick Dennis
Thanks to Rick Dennis for bringing this topic up! We love hearing from you.
Different Financial Styles Are Ok
There is much information about personal finance, and most of it agrees on the fundamental principles of creating and maintaining financial security. However, not all personal finance strategies are for everyone, depending on your background, current income, debt, and individual risk tolerance. So, you may disagree with some of what I write about, and that’s okay.
Can I Make Enough If Performance is My Only Income?
A small percentage of musicians make enough money solely from performing music. Speak to nearly any professional musician, and they will likely name other sources of income that include teaching, side gigs in various industries, “day jobs,” etc.
I look at this as a benefit of being a freelance musician. I have always enjoyed having multiple income streams since I was a kid. I had gigs I disliked (dishwashing, moving dorm furniture in unairconditioned college buildings in mid-July, and tolerating lessons with unprepared students) and gigs I liked (cutting grass, teaching prepared students, and, of course, performing).
Whenever I reach a point where I don’t see a return on a gig—artistically or financially—I know it’s time to move on to something else. Knowing how to manage multiple income streams is a skill that can be learned, though it is not for everyone, and that’s okay.
So, all of that is to say, if you aren’t a tenured symphony chairholder in a full-time orchestra with a Collective Bargaining Agreement or on retainer with a globally established artist, both of which typically provide income that covers your expenses, allow you to save, and live a relatively comfortable life, welcome to the club!
College Debt
While I liked making money playing gigs and cutting grass in high school, things got murky when my parents began discussing college and my education and how to pay for it. Before I signed the paperwork for my federal loans, did I understand the 6-ish % interest rate on the money I was borrowing? I’m sure I nodded “yes.” However, if I’m being honest, the interest tables and all the other financial details made sense theoretically; I couldn’t imagine how they would affect my day-to-day life after graduating.
My bottom line advice is this: go to the school that aligns with your educational needs and leaves you graduating with the least debt.
Choosing the School That’s Right For You
I recently chatted with a high school senior who is an excellent double bassist. He wants to play full-time in an orchestra and has a great list of schools tailored to training double bassists to be competitive in the audition circuit.
Top 12 Schools for Double Bassists Producing Audition-Winning Double Bassists
My advice was to audition for as many schools as you can afford and pick the school whose primary instructor will help you work towards your goals and leave you with the least debt.
I’ve Graduated. Now What?
I graduated from graduate school with around $35,000 in debt. I glanced at the payment schedule and decided I didn’t want to focus on my payment plan for a few weeks. I knew I had six months to get it together and begin payments sometime next year. Procrastination, don’t fail me!
My first order of business was to “get out there” and let people know that I exist, that I will show up on time, and that I play reasonably well in various settings. A fellow freelancer suggested that I play for the principal double bassist of a well-regarded regional orchestra. I sent him an email, and boom, he invited me over to play a list of excerpts for him.
A few months later, I was invited to perform as a substitute for the orchestra (my first union gig!). From that single contact, I started getting more and more freelance calls over the next few months. Simultaneously, I wanted to expand my teaching studio for another income stream. Serendipitously, my friend and now longtime business partner, Jason Heath, was moving away from several of his private teaching gigs and Suburban Chicago High Schools. He recommended me, and over the next year, my private teaching grew from 3 students to over 20.
It’s Time to Create A (Rough) Budget
Fixed Expenses: Your goal here is not to account for every penny spent but to get a sense of recurring expenses like:
•Housing (rent)
•Transportation (car, public transit)
•Utilities (electric, gas, cell phone, internet)
•Debt (school loans)
•Insurance (health insurance, gear insurance)
•Food
•Saving (yes, treat it as a fixed expense)
Your goal is to get your expenses to the lowest possible (except savings.)
That could mean:
•Finding roommates so you can split rent and utilities
•Staying on your parent’s health plan if possible
•Committing to a reasonable monthly debt payment for your school loans
Establish (Some) Steady Income
(Some) Categories:
•Performance
•Teaching
•Non-music gig
Your income will likely fluctuate from month to month. That’s ok – it’s expected as a freelancer. Your goal is to figure out what you can depend on. Take a few months, track your income, and see what is recurring (a steady gig, a handful of dedicated students, etc.). Any time you have excess cash (money left over after your expenses), commit to saving it or paying down your debt. Remember, our goal is to build financial security.
Build A Savings Habit & An Emergency Fund
Building savings is crucial for anyone who desires security. Whether you pursue playing every night or take a nine-month sojourn to dream up your next project, you will have more stability and headspace to focus on your projects with savings.
The faster you can build good savings habits, the quicker you can build financial security. To begin, we want to build a fund covering 3-6 months of our living expenses—this is our emergency fund. We will keep these savings in a High-Yield Savings Account. These accounts have much higher interest rates (the good kind) than a traditional savings account (which pays almost 0% interest), guaranteeing you lose money to inflation each year.
I use Vanguard’s Cash Plus Account for my emergency fund.
It could take you a few months or years to build up, depending on your earnings. Aim to save 15-20% of your income. Don’t judge yourself harshly. Get in the habit of contributing something, even if the amount is small. Anything is better than nothing.
Be Patient
Building financial security takes time, and it can be challenging to plan due to the nature of our work, including comparatively low wages and inconsistency in employment.
There’s much to learn about succeeding as a professional musician, and building financial security is an important aspect of that success. Most don’t stick with it, and that’s okay. Be kind to yourself and understand that struggling with budgeting, increasing your income, building an emergency fund, etc., can be challenging as we grapple with working in the music industry.
However, we can’t avoid these topics. So, here are the steps to take as you build your career:
Take These Next Steps
•Build a Budget (here is a free template.)
•Keep Your Expenses Low.
•Establish a dependable income, even if it’s only a portion of your overall income.
•Start saving to build an Emergency Fund of 3-6 months of your living expenses.
•Be patient and evaluate your progress.
If you want to explore these topics further, purchase my current favorite book on personal finance, The Psychology of Money, by Morgan Housel.
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About the Author
Trevor Jones is a freelance bassist in Chicago and a partner at Double Bass HQ. Currently, he is the Music Coordinator and bassist at Marriott Theatre.
