Practical money tips for people in the arts.

1. Sock it Away

If you are in the arts there is no such thing as a steady

paycheck. Money usually comes in spurts with no money,

often for months, many months, in between. Don't make the

mistake of thinking that spurts of income will happen on a

monthly basis.

When you get money from selling paintings at a show, a

role in a play, an advance for a book, any art project--sock it

away in a very safe place, CD's or bonds or a savings

account. Rainy days always come in the arts and hurricanes

happen.

2. Live Under Your Means.

Don't even think about "keeping up with the Jones's." Live

under your means. Forget the fancy car, the country club,

designer clothes the expensive house, fancy vacations and

private school for your kids.

That doesn't mean you can't do nice things for yourself and

your loved ones in a reasonable way now and then, we all

need to do that. And if you happen to make millions and

become independently wealthy as an artist, then fine-go for

all that later on. But, if you have to have that expensive

vacation home in the most desirable location, then maybe

being in the arts is not for you.

3. Your Rainy Day Fund

It is recommended that people with a steady paycheck put

away eight months of income in case they loose their job. In

the arts, it's a good idea to try and put away three years

worth if you possibly can. Not an easy task, but if you can

achieve it, you'll sleep a lot better at night.

4. Saving For That Rainy Day Fund

How to save for that desired artistic rainy day fund? If you

can put a little bit away each month and leave it in a safe

place, a place that adds interest-bonds or CD's for example,

you will be amazed at how much you can accumulate.

Forget any quick short cuts, they almost always backfire,

and it will sabotage your art career.

5. Forget That Credit Card

Nothing can kill a career in the arts faster than credit card

debt. If you know you can't pay for it when the monthly bill

comes, then don't buy it.

6. Keep Receipts

On your taxes declare your art income and your art

expenses. Keep receipts because if you are ever audited,

you will need proof of your expenses.

If you have an accountant that does your taxes, that expense

can be written off next year, and he or she will probably know

how to do your taxes a lot better than you do.

7. Pay Quarterlies

When you do receive income as an artist, put a third of it

away for taxes. You not only pay the IRS, but state taxes and

Social Security. Social Security tax is 15%, as an artist you

pay it all, you don't have an employer to pay half.

Pay Quarterlies, which means as an artist you pay a partial

amount towards your taxes four times a year -- ask your

accountant about this. If you make a lot of money that year,

you won't get a huge tax payment that you hadn't planned on.

If you don't make a lot of money that year you'll get a very

nice tax refund. Both you and the IRS will be happy. (You can

put the tax refund in the rainy day artist fund, instead of

putting it towards that red Ferrari).

8. Health Insurance

Try and get health insurance. It's a luxury many artist's feel

they can't afford, but it's important. In many cities there are

art organizations that you can join for a nominal fee, which

have group health insurance. If you live in a smaller area

you can often get reasonably priced group health insurance

by joining your local chamber of commerce.

9. Vocation

All of these tips assume that being an artist is your vocation.

A vocation has been described as "something you can't not

do."

© Mary Baker 2005

Mary Baker is a contemporary realist painter, whose studio

is in Newburyport, Massachusetts. This New England city,

north of Boston, has been the inspiration for the artist’s

realistic oil paintings. Mary Baker is a professional artist and

has shown in New York art galleries. Mary’s art work has

passion, depth and beauty, capturing moments in time that

many people pass by.

You can visit Mary’s website, Mary Baker Art, at http://www.marybakerart.com

, see her beautiful paintings and read her comments on

creativity, the creative journey, the creative process, Art,

Artists and Vocation, Tips on Breaking the Creative block

and creative space—the illuminating silence.