Disclaimer: the following is not intended to diagnose or cure any personal problems and is intended for boredom purposes only. I urge all of you to seek professional help for your woes.
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Part 2 On Money and Goals for Musicians 101 - Eradicate Debt
Now that you know where you are, where you are headed, and there ain't no mountain high enough to keep you away; lets get to the NITTY GRITTY and navigate your finances from point a to point b. If you would rather look at pictures of our amazing journeys, scroll down :D
If you haven't figured it out by now, being a full time artist, entrepreneur, etc requires stamina, courage and giving no flying f--ks about the "Jonses". Passion for what you do makes this possible. So, let me slap the crap out of you -->The only security you have is the security you create<--- Everybody should take this approach to life but especially you. You should strive to eliminate your debt and live as debt free as you can, as soon as possible, and then save like you will live to be 100. And you can. Make every penny count. You don't have to agree with the following but I hope it is food for thought.
Credit card debt should be the first to go and reserved for emergency situations and travel expenses that can be paid off immediately. It should be on the top of your list to pay off car and consumer loans, too. If you absolutely need something you don't have cash for that will on paper and in fact make or save you money, thats the exception. If you lie to yourself about what those things are, you are only hurting yourself. Don't buy things you can't afford. Yes, you deserve a $4000 guitar but is the bill it comes with going to improve your quality of life?
1) Write down your balances, interest rates and minimum payments for each debt, your total debt today and set a date to be debt free.
2) If you are in deep with some serious debt, don't mess around. Get some referrals for professional counsel. Be wary of debt consolidation services.
3) See what options are available through your credit card companies. Some have payment plans you can set up according to goals. See if any of those companies offer you 0% balance transfers and what the transfer fees are, how long the terms are for, etc. It may benefit you to do a transfer if you have a high interest rate on a card. Just make sure you do the math and can make the payments that will make a transfer worthwhile.
4) Call customer service for each card. If you are in good standing they may be willing to lower your rate if you just ask, and remind them of your payment history. Some may have plans that stop interest charges but also put a freeze on card purchases and ask that you meet certain payment terms.
5) Give yourself a jumpstart by putting found money on your debt. Cash in your change jars, take back beer bottles, and take a realistic look at your earthly possessions. If you have things of value that are cluttering up your space or collecting dust in a basement corner somewhere, gear or other things you won't realistically use anytime soon, sell what you can. Be realistic about their value and price them to sell. Decluttering your life will help you focus on what's important as well.
6) If you lack discipline, find an accountabilibuddy. You don't have to ask them to be your 12 step program sponsor. It may be someone you are comfortable with just telling you are doing your best to get out of debt or someone who's living la vida cheapo already. If you have a significant other or family member or friend you can ask to help you keep on target, even better.
7) Mark your progress on paper and put it someplace you will look at it everyday. Set intermittent goals and celebrate when you meet them. Reward yourself with a pre-determined amount to spend on yourself.
8) Make payments as often as possible. If you make any unexpected or side job money, put it on your debt before it burns a hole in your pocket. Use windfalls, etc to get yourself free.
9) If you are disciplined you may want to take advantage of cash back offers on your cards for things you HAVE to spend on like gas, groceries, etc. Pay it off as soon as you make the charge and put the cash back on your balance.
10) Remember, debt enslaves you. When you get discouraged or tempted think about how great it will be when every penny you bring in is yours.
Next - lets get hardcore about spending and budget to get things done.
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Getting Kicks on Route 66 in Tucumcari, NM
St Francis in Santa Fe, NM
Above Santa Fe, NM
