financialtreat – will explain about How to Manage Entertainment Finance Properly and Correctly that you will get in the following article. let’s see this article carefully!
When you do personal financial management, there is such a thing as entertainment finance. As the name suggests, this expense is intended to fulfill your wishes. Generally, these expenses are used to fulfill hobbies.
For example, a holiday at the end of the year, watching a movie at the cinema every weekend, or just buying a book that you like. However, what exactly is the function of this expenditure? How much should be set aside for this expenditure? Check out the following explanation about entertainment finance.
Spending on Entertainment
Before determining how much budget you should prepare for this expense, you must first determine what form of entertainment you want. This form of entertainment can be a Netflix subscription every month, buying a book, or watching in theaters every week.
This expense can also be used to fulfill your hobbies. For example, fishing, traveling, and so on. However, if the form of entertainment you need is to eat at a restaurant or use the internet in your spare time, decide whether the expenses include expenses for daily needs or for entertainment. This can help so that expenses for daily needs are not disturbed by these expenses.
How to Determine a Budget for Entertainment
1. Determine the form of entertainment
Financial planner Tom Carley told CNBC that the amount of spending on entertainment should be allocated to a minimum. This is to avoid you from wasting the money you have on something you don’t need.
So, while the nature of these expenses is for fun, you should really use them for something you can enjoy for a long period of time or sustainably, not temporarily. Therefore, the first thing you should do is determine what forms of entertainment you want to enjoy.
2. Determine the amount of expenditure for entertainment
After determining what forms of entertainment you need, determine how much you will spend on the entertainment. Although you can determine the amount as you wish, as much as possible the amount is no more than 10-15% of the total income.
So, if your monthly income is in the range of IDR 10 million, the amount you can spend on entertainment is around IDR 1 million per month. In this way, you can continue to do hobbies without disturbing other expenses.
3. Create a special account
If you are someone who has difficulty managing finances, create various separate accounts for your needs. This way, your every expense is organized and not mixed up. Create a special account for expenses for entertainment needs.
You can also use a special debit card for entertainment that is separate from your daily needs. So, when you spend money on entertainment, the money for daily needs will not be disturbed. This method will also make it easier for you to record every expense so that you can manage your finances better.
Well, after doing these three things, you can do hobbies or other entertainment activities without worrying about disturbing personal finances. After the explanation, as a form of information, we will provide an explanation of how to manage finances for entertainment workers.
How to Manage Finances for Entertainment Workers
Entertainment workers such as singers, actors, actresses, directors, and others must be able to manage finances well. That’s because they don’t get regular income. When they are flooded with jobs, money can flow quickly.
However, when they were quiet about job offers, there was no money coming in at all. Eventually their income money will quickly run out for necessities. This is what they often face during this time. The competition in the entertainment circle is very high. There will be many newcomers who are preferred by people and selected to perform. So, jobs aren’t always there for them. However, take it easy because here will be explained about tips for managing finances for entertainment workers.
1. Implement frugal living
Entertainment workers do not need the prestige of living frugally. The trick is to reduce party activities that are usually done every week, walk around nearby, and then prefer to eat simple meals instead of going to restaurants regularly.
Also reduce buying branded items if you have no intention of selling them anymore. It is best if this branded item is used as a business land to make additional money. This frugal life will save you when the job is quiet.
Frugal living is not a shame. Frugal living has many benefits for you. You will also be healthier physically and mentally when you can save well. Moreover, you don’t get regular income, so you need to do various strategies to be able to continue to meet your daily needs.
2. Create a budget regularly
Entertainment workers usually get paid a lot of direct pay at one time. That considerable amount of money will usually make you tempted to spend it right away. To avoid that, you need to create a budget. This budget is made before you receive the money.
Make a budget for your needs first, then those desires that have not been achieved so that you will be calmer when the needs are successfully met. By creating a budget, you will also know where you are using the money. You’ll also think twice about spending it on unnecessary things. Now there are many applications that you can use to compile this budget.
3. Saving (Entertainment Finance)
The thing that you should not forget is to provide a special savings account. When you get paid for a job, just save the money a few percent. So, every time you get paid, you need to save it. This savings will be useful to you in the future later.
Or you can also use it for an emergency fund. If you want to save in the form of precious metal savings, that’s a good idea. You won’t be able to use it right away because you have to sell it first to make money. Creating a special savings account and precious metals will make you more disciplined in saving.
4. Have additional income
Entertainment workers also usually have other additional income in addition to doing their jobs. For example, some open endorsement services on social media, open their own YouTube accounts, some become book authors, and so on.
The income is not routine, but because it comes from various sources, you can still make money even if there is no job. For example, you still create YouTube content when you are in a quiet job. From Youtube monetization, you will get additional income.
5. Set up a business
Or you can also set up your own business. You can take the example of artists who have succeeded in doing business, for example, Nagita Slavina and Raffi Ahmad with their various businesses.
Nagita and Raffi are still active as artists appearing on several occasions of entertainment shows and they are also active as business people. The business run by them also varies. What is clear is that they built this business not overnight. They founded it for many years from the income earned while working.
6. Renting out property (Entertainment Finance)
Renting out property is a way that you can practice if you want to get regular income, apart from your income as an entertainment worker. From the income of the entertainment world, you can save it, then when it is collected you buy a property in the form of a house, shophouse, or boarding house. Choose a property in a strategic place such as in an office area, campus area because of the possibility of bringing in more tenants.
7. Do not forget about asuration
You don’t forget to join the insurance program. Important insurances are health insurance and life insurance. For health insurance, you can choose the government-owned BPJS Kesehatan or choose private health insurance whose products suit your needs.
Then, life insurance can also be used when you have an accident, there are relatives who have died, and other risks that are protected by it. Both insurances can help you in difficult times. For this reason, register yourself as an insurance participant from now on.
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Entertainment workers can also invest to earn more in the future. You can choose long- or short-term investments according to your financial goals. Some long-term investment instruments to choose from are stock investments, gold, property. Then, for short-term investments, stock trading, crypto trading, and more.
And that’s an explanation of entertainment finance, along with how to manage finances for entertainment workers. Hope the information is useful!