Finance 101 for Creatives: A Quick Guide
Finance can feel intimidating for anyone, but it’s often especially overwhelming for creatives. I’ve seen it firsthand with friends, clients, and family members who followed their passion for beauty only to find themselves suddenly drowning in the business side of things.
If that sounds familiar, here are a few foundational finance tips to help you get started:
1. Create a Budget
Want a head start? Send me an email for a budget template!
Understanding your fixed and discretionary expenses is essential. You need to know exactly what it takes to stay afloat. Your business can’t grow if you’re constantly stressed about paying bills, taking care of yourself (and your family), or enjoying life.
2. Pay Yourself First
Once you know your monthly expenses, set a salary for yourself.
For example, if you need $5,000/month to cover your needs, pay yourself $1,250/week. Treat it like a non-negotiable paycheck.
3. Split Your Paycheck
When you get paid:
- Set aside 30% for taxes—this helps you avoid surprises at tax time. (Tools like Square can automate this for you.)
- Deposit the rest into your business bank account.
- From there, transfer your weekly “paycheck” into your personal account.
Important: Keep business and personal spending separate. Use a business debit or credit card for all business purchases. This makes tracking expenses easier—and your CPA will thank you!
4. Build an Emergency Fund
As a 1099 worker or even a W2 employee, aim to save 4–6 months of fixed expenses, both for personal and business needs. Start small: even saving $100 per paycheck adds up over time.
Need help or accountability?
I’m here for you. Reach out anytime.
Emma Traun
Financial Advisor
8530 Eagle Point Blvd., Suite 200
Lake Elmo, MN 55042
952.248.5948
[email protected]
