Setting Financial Goals
Setting financial goals meant different things at different times in my life. That being said I've always had short-term, mid-term and long-term goals no matter where I am on my journey.
When I was a student or fresh out of college my main short term and mid-term financial goals were wrapped around getting an apartment in NYC, paying for classes and affording to go to auditions. Oh, I almost forgot ... paying student loans!!!!!!!!!!!
Later in life, my goals changed to having a savings plan for vacations and travel, buying an apartment in NYC, contributing as much as I could to my 401K and paying off debt.
Now I'm concerned with retirement, financing & growing my company, funding enhancements on my house, and paying off debt.
The rules of setting goals are simple. I use the S.M.A.R.T formula.
Examples for short term goals to spark your list.
1- Your Baselines! Get very familiar with what your survival baseline, thriving baseline, and your winning baseline are so you can meet your next strata of financial freedom.
Check out the last article on baselines.
2- Career Development! What can you leverage or learn? Come up with a plan to increase your income and best-case scenario, increase the time you have available for auditioning or making or studying! This could mean creating a side hustle or acquiring a skill for employability. This could be investing in workshops or classes that move your education & your financial freedom forward.
3- Student loans? What are the deferment plans available, and the savings-plan to eventually pay this loan?
Mid-Term Goals (3-10 yr goals)
1- Streams of income/Artistpreneurship! What do you need to create a small business as you pursue your career? This is where you control your time, your money, and your opportunities.
2- Debt-Free!!!! Looking at the numbers and drafting a plan to get debt free is a fantastic goal!
3- A Big Purchase! Whatever this purchase is will take a serious plan. Don't forget to do your research and ask others for advice. Ask a friend who has done it successfully, and survived the process, and ask a professional that understands the artist life!
Long Term Goals (10yrs and beyond)
1- Producing your own work! For some this could be a short-term, mid-term or long-term goal, it really depends on you. No matter what it is, planning for this is super important. What does it cost and how will you finance it?
2- Moving to another city! Maybe in 15 yrs, you want to try another city, or another market or another career. What kind of financial position would you have to be in to achieve that? It's always good to think about what that long term goal would look like & how much it would cost. You may need to make an adjustment to your mid-term goals so they align with your ultimate desires.
3- Retirement!!! It is so important to know what to save now to live the way you want to live in the future. Looking into retirement calculators may also change your short-term and mid-term goals for sure! The Insitute of Financial Wellness for The Arts has a great Retirement Savings Calculator.
PS: Click here to find financial calculators for all your needs!
PSS: Knowing how to set goals that you can keep is so important especially when it comes to your money. The life of an artist can be unpredictable, but with the right plan, support, and resources we can all be better at it! Cheers!