Financial Management

I am quite conservative when it comes to debt.  Prior to the recession I was told that I was ‘anti-American’ because I refuse to get in debt to buy things.  Now that the bottom fell out people tell me I was smart to do so. My approach is to save until I have enough money to buy what I want then pay cash.  This means that I do not get in debt.  Plus, because I keep my money in a money market account, I receive interest instead of paying interest to the bank.

My approach is motivated by two factors.  First, my upbringing.  I was raised with the expectation that I was to buy what I could afford with the money that I had at the time of purchase.  In other words, I learned to save, not to spend.

Artist as Profession
Second, I am in a profession –‘artist’ for lack of a better word– in which income fluctuates greatly.  In this type of situation, getting in debt can spell serious financial trouble rather quickly.  Therefore, one of the decisions I made when I started my career was to structure my financial life so as to minimize my financial exposure.  This has worked very well for me and has protected me from the negative effects of the recession.

Of course I could not predict that a recession would happen. Regardless, this is the approach I recommend to artists when it come to financial planning. I also recommend it to anyone who wants to minimize their financial exposure.

Conservative debt management works
I am quite conservative when it comes to debt.  Prior to the recession I was told that I was ‘anti-American’ because I refuse to get in debt to buy things.  Now that the bottom fell out people tell me I was smart to do so. My approach is to save until I have enough money to buy what I want then pay cash.  This means that I do not get in debt.  Plus, because I keep my money in a money market account, I receive interest instead of paying interest to the bank. My approach is motivated by two factors.  First, my upbringing.  I was raised with the expectation that I was to buy what I could afford with the money that I had at the time of purchase.

Learn to save, not to spend
In other words, I learned to save, not to spend. Second, I am in a profession –‘artist’ for lack of a better word– in which income fluctuates greatly.  In this type of situation, getting in debt can spell serious financial trouble rather quickly.  Therefore, one of the decisions I made when I started my career was to structure my financial life so as to minimize my financial exposure.  This has worked very well for me and has protected me from the negative effects of the recession. Of course I could not predict that a recession would happen. Regardless, this is the approach I recommend to artists when it come to financial planning. I also recommend it to anyone who wants to minimize their financial exposure.

Live below your means
In addition to not going into debt, one needs to live below their means. Just because one can afford something, even if they can pay cash, does not mean they should buy it. I have found this to be true for all things…. except of course, cameras and lenses….