"5 Essential Money Management Tips for Creative Professionals"

applicable exclusively to freelancers in India 5 strong strategies to maximise your yearly profits

Every year, we learn more about ourselves by getting new assignments and using our current skill of making pictures for brands, agencies, and corporations to help ourselves and our loved ones. It's not always easy to stick to deadlines and contracts, which can affect our yearly and even monthly goals. Instead of trying hard to control the fantasy of on-time payments, we should accept that we chose this way of life freely and that we can always control its beauty. Making a budget, learning about some must-do investments, and learning more about money and how to give it the best chance to grow will help you get started on your path to living a life and doing what you love for as long as you want. The most important thing is that you should be proud of taking the road less traveled and being a part of a society that helps itself.

This blog doesn't offer any quick ways to make money, like recommended insurance plans, stocks, or mutual funds. Its only goal is to help us understand money better and give you some tips on how to make the most of your yearly earnings.

Financial literacy is a basic right that we were not taught well in school. I'm sure people who grew up in the 1990s can connect to this. Instead of being afraid of missing out, we should be thankful that we live in a time of opportunity and massive knowledge exchange.

Go ahead and start!

1.Monthly expenditure: Starting modest is always a good notion when you're dealing with a non-linear earning fashion because your living is uncertain. The following may or may not be monthly necessities: Housing, A Mortgage EMI (if you're a house owner, that's great!), maintenance fees (for homeowners), power, internet, groceries, gas (not for eating out), travel (and EMI, if applicable), personal care items, medicine, home cleaning (including fees for domestic help), subscriptions to educational or entertainment services (like Netflix or work-related accounts) and anything else that's necessary for your survival.

If you add together all of the above and multiply it by 12, you will have the minimum amount needed to live comfortably in India. The figures will change based on factors like location and individual tastes and habits.

Let's consider that we require 25,000.00 INR monthly on average and 3 lakh per individual every year.

2. Investment matters:When you're your own boss, you have to be just as proactive as an employee, even though you can't see the big picture. It is essential to get both term insurance (only if you have a family to support in the event of your untimely death) and health insurance (not negotiable) since, even if you haven't been sick very often, the skyrocketing costs of medical care will catch you off guard.

Under section 80C, you can deduct the aforementioned expenses.

Always, always and for god sake always Avoid any MONEY back or Guaranteed return Policy in the name of insurance or else. IT'S A SCAM!

An excellent method to prepare for any kind of disaster is to have liquid funds or a fixed deposit on hand. It's recommended to set aside at least six to twelve months' worth of expenses in these categories. They not only provide an opportunity for your rainy-day fund to grow, but they also serve as a mental wall to prevent you from spending more than you have.

3. UNDERSTAND MONEY: The government of India strongly recommends that self-employed professionals register a PPF account since it serves as a tax saver and also offers a return that is free of taxes, at a rate of 7.1% per year, which is higher than the average inflation rate in India. For the time being, let's focus on PPF as that's all we have, even though it has its own advantages and disadvantages and has long been considered equivalent to EPF.

I think it's a great method to put my money to work for me and get me closer to my goal of financial independence.

A PRO TIP: Always invest in your PPF account a maximum of 1.5 lakh a year between 1st and 5th April to gain the maximum rate of return. 15 year lock in period and can be extended for 5 years and more consequently after the completion of 15 years with a minimum topup of 500 INR only.

Just like our parents, who were and still are huge fans of FD for the peace of mind it provides, we now live in a time when everyone expects too much. If you want to give your money the boost it deserves, a mutual fund is a fantastic option. Stocks are great, but I think you should stick to mutual and debt funds unless you want to join the financial fraternity and have the time to learn all there is to know about the stock market and beyond.

The world of mutual funds is vast and complex, and it is necessary to explore it thoroughly periodically to learn about its ins and outs and choose the one that best fits our needs. After you've mastered the fundamentals, you'll never have to worry about anything else; in fact, you'll look back on your younger self with gratitude and pride.

4. MUTUAL FUND: We photographers and creative professionals have varying needs and wants when it comes to equipment, subscriptions, and study materials, and for many of us, travel is more of a necessity than a luxury. Investing the traditional way is clearly not the way to go if we want to pursue our life's passion, and there's no denying that we need a safety net. Among the many alternatives provided by mutual funds, one is a liquid fund; I keep some of my savings in this type of account because it's easier to access than a fixed deposit (FD). Index investing allows you to sit back and enjoy the ride, while a few flexi-cap funds allow me to get the most out of everything.

TO NOTE: I am not a financial advisor and highly suggest to seek a professional's help which suits your needs better.

More than a thousand schemes are at your fingertips, with many catering to more seasoned investors with offerings like credit risk, sectoral, or focused funds. That shouldn't discourage you from studying and learning the essentials. I hope you're sticking around to the end of the article because I recommend a few books to anyone who wants to learn more.

In my experience, mutual funds consistently outperform fixed-income investments (FDs) due to their higher average returns, which help to maintain a domestic purchasing power parity (PPP). It should be remembered that these goods are linked to the market, which means they are subject to volatility. Be aware of your risk tolerance before investing in these financial assets because of the impact of political, geopolitical, and specific domestic and worldwide pandemic events. For goals that are five or six years in the future, I prefer these methods; for goals that are shorter than three years, I prefer to use traditional methods because I can guarantee the amount I need at that time.

If you're just starting out as an investor, the sheer number of considerations may be intimidating. Take a deep breath and believe in your abilities; you can turn financial complexity into lovely, graceful rewards.

5. MAKE YOURSELF A PRIORITY: Everyone has the same basic need for survival, whether they are self-employed artists or salaried workers. Nevertheless, we can achieve greatness and dominate our field provided we have the mental and physical resources to do so. The greatest insurance is merely a safety net; we still need to put ourselves first every now and then.

• Get out of bed and exercise at least once a day so you can enjoy the sun's rays.

• Prepare your own meals and eat those low-fat, low-cheesy options. Prioritize your health over medical expenses.

• Because life is so cutthroat and your mind is racing from all the negotiations and bad self-talk, it's important to take some time to meditate and be thankful.

• If you do care about money, if you can afford, you should give to charity every so often.

• Firmly decline employment that isn't a good fit for your aspirations.

• You didn't sign up to be bullied or disrespected just because the creativity business is cutthroat.
  

A third party is often necessary to assist us reorient ourselves when the boundaries between our personal and professional lives get blurry on the long and winding road that is being a creative professional wherever in the globe. Despite our best efforts to avoid playing the "money game," the constant barrage of negative social media posts serves as a constant reminder of how little we actually have. Be patient, my friend; a man once told me that things will get better and that I will get what I want when the time is right.

A FEW BOOKS RECOMMENDATION:

I, Shovona Karmakar, work in advertising as both a commercial photographer and a computer-generated imagery (CGI) artist. Location: Mumbai. This online journal serves as a window into my worldview and interests, and I hope that you will find something of interest here. My life is consumed by the desire to learn more, so if I'm not doing my homework, you can probably find me at a garden center or a bookstore.

5 must-know facts about the photography business.

An honest confession " I left my 9 to 5 job to work 24*7" and I couldn't agree more. Every time one lets me know the amazement they believe I own in my job, it brings back all the memories of when I almost gave up. Any consideration of creative business is a 21st-century melodrama and it is not meant for the weak heart. Looping cycling of demand and supply and knowing the art of quitting before it gets saturated.

We all know it is important to be creative and above all, it's crucial to understand how to be creative for others to seek a profession in the creative industry. What makes and breaks one to sustain for more than expected is governed by 5 laws and how to implement them into one's life for the better.

To note: From here on, it is gonna be full of life gyaan and sanskaar, so in case you are looking for any creative tips and tricks please do check out my articles especially 3 best alternative careers to commercial photography

Now, let's get back to business!

LAW 1: One thing at a time

A part-time hustler is a myth. It's either you are into it or not. It's like any serious relationship either and there is no middle ground because everything else is "Dolgapaan hai yeah"

The law of attraction governs when you desire something with your whole heart and soul, the universe finds a way to make you meet it. If you ever know anyone who has sailed two boats at the same time, it will be mostly an illusion.

A conservative idea of hustling with your primary job is an idea best suited to hustling forever.

LAW 2: Get your subconscious to work for you.

It is an extension to law 1 where I will encourage anyone to practice the art of letting go of any fear and seeking comfort. I understand, is a mind-blowing transition and many hesitate to talk about it, considering in-case you contemplate even having an adventurous thought, though let's face it, it is not going to be easy but it's all gonna come back far better than ever you imagined cause you deserve it post all the minimalist and sacrificial act you had to adopt in the due journey of being your own boss.

Meditate and learn the art of visualization of your must-have dreams. Power of Your Subconscious Mind by Joseph Murphy is an excellent Book to start the process (ignore the religiousness effort put in by the author which can make you feel a little off)

LAW 3: Be smarter with your finances

I love money and I hold no shame or guilt in stating how much I love it every time my bank account gets credited. For everyone else, it is a must to get to know your money and understand how it works and how to make it work for you.

Financial freedom leads to creative freedom, a power you hold in your hands to choose what you wish to do, and with whom and always have an upper hand when it comes to negotiation.

A must-have is a medical insurance | claim and in case you have any who means a lot to you, get a term life insurance.

(I was recently been miss sell a product by my own bank and I had a hell of an experience to prove my point and get the money back, will post about it soon)

In the past two years, I have been observing the power of Mutual funds and highly advise everyone aspiring to be a creative business person to start their financial educational journey asap.

LAW 4: Be Rational with your commissions.

As an artist, it is difficult to let go of your work and I have often seen many aspirants, including myself, getting too attached to my work and not letting themselves loose enough to understand the need of the client and brief. In the commercial business, a change of attitude is non-negotiable. We all have our own version of what we want to do vs what one is asked for and when the work is based on a monetary transaction it is highly important to let go of any ego attached to our outcome and hear the client out better.

Having said the above, I don't mean to care less about the work quality, but rather learn how to balance via direction and communication. One has to remember, as you generate more experience in the industry chances are high that you will come across clientele who are looking for what you do and which speaks your taste, visual treatment and style.

LAW 5: More than photography

This may sound blizzard but the truth to be told, business is not just about how emotionally you are attached to your work but it is also about being rational and practical with your approach, attitude and action. In the creative industry, there is no space for talent unless it has the right attitude along. A better understanding of the business basis is what you should look for if you are serious to pursue a career in the same.

Learn to be a better salesperson, writer, marketer, public speaker, social media manager and analyst, work on your personality and sort out any internal issues you have (anxiety, Adhd, and depression are widespread) don't let it hamper your client image, and learn how to manage your schedule (meditation or any kind of mindfulness activity is a must for any creative aspirant, check out apps like calm and headspace in-case you are not able to afford an in-person session with a professional).

Having the core skill to generate creative content for your audience retains value as long as you bring something fresh in front of your audience and hence never stop learning.

The best part of running or starting any venture is the unknown territory you have allowed yourself to ride on, and be ready to amaze yourself with everything you didn't know about yourself.

Wish you the best!

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Hello! Myself, Shovona Karmakar is an advertising photographer and a product stylist based out of Mumbai, India. I have worked with upGrad, Whisper, ICICI, Future Generali, Whisper, Pampers, Morningstar USA, Pepe Jeans and more. An avid plant lover and having the superpower to connect to stray dogs, keep me grounded. If you ever find a crazy chick flying on her cycle, that's me! Check out my other work at: shovonakar.com

Psychology of money

Psychology of money | by Morgan Housel

5 ways for you to be a better creative professional

The book is for anyone to understand the basics or to lay a foundation of financial literacy in one's life. It doesn't matter who you are and what you do, financial literacy and the concept of saving is very new. It is important to know how we behave with our money in general as most of it is often irrational and saving money should not have any agenda in general though it is important to inbuild the habit of doing so as early as possible in our lives.

I come from an era where creative professions were linked with failure, hunger and struggle all lifelong. I work in an era where the creative profession is considered for the strong heart and the risk-takers which eventually tops the chart of life considered successful.

It is sad to see though, many creative professionals often concentrate solely on creating and recreating content to generate a bank of work to prove their worth and many often neglect or shy away from the fact, that let one do what it wishes to do as long as it wants to do and when it wants to do. Money is often considered that corrupts one's mind and hampers its creative vision, in reality, it is the most important factor which let ones mind to be free from worry and create the stuff one wishes to.

If you are a photographer, illustrator, makeup artist, stylist, director, cinematographer, post-production artist or anyone who is a part of the media and entertainment industry, this book has a lot to teach you and I will also share a few aspects of how I behave when it comes to my money at the end of this article.

TO NOTE: Only a few points are been discussed considered fitting the agenda of the blog, though I will humbly suggest you pick a copy if you can. This blog is not responsible for any personal, professional, financial, psychological loss incurred if it may. Any mentioned pointers are to be considered as a mere suggestions and not professional financial advice.

1. Confounding Compounding:

Any aspirant starts their journey to be a professional from mere scratch. It either learns a skill to initiate or hold a mere talent in its native state.

Whereas any portfolio showcasing various aspects of creativity serving a set of premium audiences holds the much-needed growth gained in its past many years.

Eg: As a photographer, I started capturing images solely from a photography point of view minus post-production and creative manipulation though down the line I believed in various other mediums and owing those skills to recreate a bank of images that helps me hold an edge over others in the market.

Similarly, money, when let, grows for decades undisturbed gains power and an edge one needs eventually in its life.

Given said that, the amount is not what matters as much as the amount of time one lets it rest and grow, as like any talent needs its own time for it to get mature aesthetically.

2. Wealth is what you don't see

Spending money to show people how much money you have is the fastest way to have less money

As with any creative profession, things are required to set up its space initially doesn't come cheap. As and when an instant desire to upgrade with the latest and greatest comes to mind that one may feel fit one needs for time being and hence are kept at the top of one's shopping list may sound like a wise call to take. On the other hand, this irrational act of buying robs one's bank of the much needed financial support if and when one may wish for it.

An emergency like the much-needed service of your computer, camera or a subscription of your graphic software must be for the project you need to submit at the earliest.

The latest phone or the wifi-enabled camera. The drone you hold or the accessories you wish to add to your photography bag may create unwanted anxiety and it surely gives an instant satisfaction when finally bought, blame it partial to the social media and advertisement that makes you believe that you need it. The way to have a hold over it is by being rational than irrational about one's needs and being comfortable with what one has and a bit below what you think you can live with, comfortably.

The choice of renting exist to unload the burden of buying things that you may need to sell to buy things you need.

3. SAVE MONEY:

The only factor you can control generates one of the only things that matter. How wonderful!

Having more control over your time and options is becoming one of the most valuable currencies in the world. There is nothing that can force me to deny what is been stated.

As our parents and our grandparents, where saving and the act of investment was directly proportional to various life goals like owning a house, car, planning for a world tour and child education. Saving in the present era should not exactly be pinned to any definite agenda, though the simple act of saving, is a good enough reason to be prepared for anything, which helps you to step up in life or hold you up in the worst of your phase.

4. You will change:

long term planning is harder than it seems because people's goals and desires change over time.

We, humans, are been carried away via various phases in our lives and yet we think we will retain the same characteristics we held decades ago.

Like a child dreaming to be a superhero in his mind which holds no fear or worry of life, eventually realises the world around and hence his goals changes. We change and we keep changing ourselves to best suit our survival opportunities.

A creative professional does have its set of phases to pass through and eventually feels the need to change or grow in various aspects. Our life plans and goals changes and so so does our priority.

In the worst scenario where your creative profession didn't turn up as per your expectation in a definite time period or you need a few years to gain a certain skill set very much in demand in your area, or a sudden personal pitfall, gives anyone a valid reason to save.

5. The seduction of pessimism:

Optimism is a belief that the odds of a good outcome are in your favor over time, even when there will be setbacks along the way

The life of a creative professional is full of uncertainty, one's economy is directly proportional to its standard of living. Yet in the past decades, we have observed and lived uncertainties and hence it justifies enough to be not too sure about the coming times. The future is uncertain and so does the economy.

We may not adore a negative person or an idea though it holds the most power and gains our maximum attention. This desire to survive and the instinct in us as a human lets our minds think about the worst than the best to make themselves prepared well for the pain we all must avoid. The fear to live for months with no work calls or pitches. The anxiety where the bank is not fed well for long is a good reason to think about how we behave with our money and how we set our life in general. A certain amount of self-pampering is good for mind and soul and indeed important, as money earned is not worth it if it was what you finally hold on your deathbed.

Above all, a desire to be a creative professional, where the mind holds the possibility to attain a life considered successful in conventional terms. One's financial planning and the decision will eventually help one to do and create at its own pace, choose the best of the clients one wish to work for, and live in the best environment giving the utmost standard of living.

Tips and Tricks:

1. Buying vs Renting:

As a commercial advertising photographer and a product stylist, I hold no reasons to buy the latest of the camera, computer, lens and else every time it is been launched. Instead, I believe in renting my equipment as and when required. The ability and possibility to reach out to the best of the vendors in the market updating itself with the best give me more reasons not to shed my own money.

2. Buy the best you can afford:

My investment choices are based on the factor of how often I am using it and the amount of time it will require to cover my base expenditure and how much profit I may gain eventually.

Any buying choices must be around the factor of investment vs return.

A high-end digital gadget's self-life vs its depreciating market value is a must think about,

Eg: a computer with a well-built metal body along with a fast, high-end processor which can serve you and your work demands for the next 5 years may cost you 6x, it may seem like an expensive choice to go for versus a system with an average configuration and plastic built costing you 2x and last for a year only. In the case of the latter, you will end up spending 8x more to suit your need in the coming 5 years.

3. Living below my comfort level:

I am not a fashion vista nor my job demands me to be and hence a few pairs of awesome sports shoes, formals and athleisure are all I hold in my closet. My clients demand me in terms of my work quality not how I look like. To add my occasional visits to movie halls, entertainment centres and restaurants and once in a few years, vocational breaks has helped me to be sane enough for those days unannounced.

Given said the above, it is your personal choice to splurge though keep in mind how much value it is adding to your life in general.

4. Saving for the sake of Saving:

Every nation in its democratic nature has led to various advantages for anyone running its own shop. Tax redemptions are not solely for the corporate but even creatives should be aware of. My choice around my money is more about investing in the market and government funds than splurging on things I will not need eventually.

5. Being Rational vs Irrational:

A trick learned years ago is adding all you wish to own instantly on your cart and let it sit for a week and two and if possible for a month. A month is a good enough time for anyone to understand its priorities and eventually one can take a call accordingly. The goal is to educate yourself about what is important vs a temporary gratification.

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Thank you so much for reading and I hope it helped you to understand your own relationship with your money better or share it with someone whom you think is an aspiring creative and needs a little nudge in regards to its financial understanding.

I am Shovona Karmakar, a commercial advertising photographer and product stylist based out of Mumbai, India. I specialize in portraits, editorials, people, products and cinemagraphs. If you are looking for a creative professional alike or wish to drop a Hi! feel free to ping me or use my contact form.

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