You want to get your career started in entertainment. In this blog I’ll show you how to create a financial safety-net to help you learn the best ways to save money fast. This playlist series will show you how your personal Triangle of Life will work to bring reality to your dreams!
All career ventures cost money and time. These investments of your resources can be controlled to improve your chances of success. Try to open a doughnut shop with little to no money. The experience would be three to six months of pure stress before closing down. A business needs start-up capital to seed the first twelve to eighteen months as it finds a steady footing to grow.
As that growth comes in money should be organized to develop wealth while maintaining stability in your financial foundation. To jump out the plane before checking your parachute is a massive risk. Instead, check your parachute, know where you are free falling too, and be ready to afford any contingencies that come up on your way down. A foundation affords you the right to take a calculated chance into the air!
Keep in mind the process to success, longevity, and your purpose all have variables. Take what I teach you in this video, and the following series, with a sense of intrigue. Take notes, then do your do diligence; research, research, research. We love breaking down a complicated process and simplifying it. This gives us a chance to show you what we learned from other successful entertainers and their triangle of life!
“If you were giving $100,000 right now, what would you do with it?” Let me know in the comments below.
A financial foundation represents your journey’s start-up capital & foundation. Start-up capital is the total amount of money accumulated to begin your venture. When you hit this total delegated amount you’ll have earned the right to take a calculated chance toward your career. A foundation is the physical representation of your overall financial security. Know your needed minimum amount of money.
Stronger financial foundations have a minimum of eighteen months of start-up capital in them. We determine that minimum by knowing your average monthly overhead [AMO]. If you know your AMO is $3,000 multiple this by 18 to get your financial foundation of $54,000. Save this money before taking a dive into your career. Be aware of this money, focus on your goal, not your desire.
Foundations serve an alternate purpose toward growing wealth. By maintaining a specific amount of money in your financial foundation you can utilize the 60/40 split rule. This rule works in conjunction with your 3 needs of purpose. The process allows you to grow your security, growth, and need elements to develop wealth during your first twelve to eighteen months of your new career venture.
The amount of money held in your foundation gives you the right to organize your earnings into the 60/40 split. 60% of your money is divided evenly into your 3 needs of purpose. The other 40% goes back into your financial foundation to maintain stability. These 3 needs of purpose allow you to protect yourself, invest in yourself, and reward yourself while still affording your average monthly overhead.
To determine when to stop utilizing the 60/40 split, create a safety-net threshold. Have your safety-net threshold cover three to six months of an average monthly overhead. When a financial foundation reaches this threshold work on replenishing your account. These guidelines work to budget your finances while developing wealth. A video on budgeting is in the description to figure out your average monthly overhead.
Money management skills are essential to create longevity for a career. Your financial foundation fuels your initial steps into that new career. Having control over your money gives you choices. It allows you the strength to take those calculated chances. To build a career making a living doing what you do passionately. A financial foundation is the overall starting point. A safety-net is the warning to save.
Safety-nets inform you when it is time to reinforce your financial foundation. We can get tied up in a busy life. Whereas a safety-net is a numerical threshold we can physically see. When you see yourself getting closer to that threshold make changes. Pivot to get back on your feet. We should always allow our numbers to delegate some form of control steaming from ourselves.
You make the choices to how much, when, and where you want to allow a system to give you push back when needed or even reward you when earned. Setting up restrictions is a way of letting your mind focus on other things. Can you afford the month comes down to a financial number within your main safety-net business checking account. Every month when you pay your bills you get a chance to see these numbers.
A safety-net was designed to give back your power over control and tell you when you are absolutely able to utilize the 60/40 split. Though, you should always be taking that 40% and placing it back into your safety-net business checking account to maintain growth to its financial integrity. The control comes in the form of warning you when you need to make a move and to place money into your 3 needs of purpose.
To get started, open up a business checking account under an S Corp or LLC. Do your research on what option works best for you when creating either. If you’d like me to do videos on the major difference please let me know in the comments below. This account business checking account is dedicated to your financial foundation/safety-net. All your overhead expenses are paid through this.
Having a business checking account will more than likely help to give validity to your venture. By having this account to pay all your overhead expenses through you’ll be able to keep track of your spending all in one place. When you hire an accountant you can give them all your bank statements in one quick email. This makes it easier for you to maintain an organized account of all you are doing each year.
Creating a business checking account allows you to separate your personal expenses from your career expenses. Though it is not uncommon for some expenses to overlap. Do your research to figure out which expenses can be considered business over personal. RULE OF THUMB: If it advances, affords, supports, or considered research for industry knowledge, or an investment into the company it is a business expense.
As your 60/40 split allocates enough money into your 3 needs of purpose: security, growth, and dream you should open up business saving accounts for each. However, there are other options for each of these needs to get the most out of them. Allow your research to direct you to what works best for your personal needs to help you organize your financial capital best.
No chance taken is worth it without a plan. The idea to Jump out of a plane hoping divinity will watch you down safely is probably a move best left in the “not such a great idea” box. This is your life we are talking about. Your career. Your passion. Give care to what you love. For the quality of time you put into something will return the quality.
It’s okay to have to wait a little before taking that next big step. How long do you have to wait is all about having your ducks lined up wisely. Or at the least your ducks are heading to the line. What that means is to know your results and how to get there by S.M.A.R.T. Goal setting your process to those results. The main reality is to have that stability set in your start-up capital. You need your eighteen months of foundation.
While getting your house in order to take that calculated chance. You should set up your long dream goals to. Know your one, three, five, seven, and ten year goals over all. Know where you are going so you can prepare accordingly with smaller S.M.A.R.T. goals. The purpose of this is while you are establishing your financial foundation you can start doing what you can do get your dream goal smaller tasks in line.
The idea is that while you have your saving money brain working you should be starting to build your career foundation as well. Working on your networking, marketing, and practicing needs while building habits for your management of time, money, and the people around you. All the while setting the tone for that day when you finally have a full financial foundation to step out of the plane safely!
“The fact is: You are not a manager of circumstance, you’re the architect of your life’s experience.” ~ Anthony Robbins
Who knows if you need a financial foundation or not. Really, who cares. Work a survival job until you get that big break. Then you can focus 100% toward your career. This is the mentality of an artist brain. Or hobbyist. Your success is reliant on your effort. You have to make smart choices to get ahead of the game. One of those choices is taking control of your finances in life. Have a foundation to protect you.
What you do with that financial foundation is afford yourself the freedom to take calculated risks. What it comes down to is your ability to have choice. Freedom of choice. To be able to say yes and no on your terms. A financial foundation frees you to stand strong. You do not want to be beholden to anyone for anything. Yes, you need other people in your life to succeed, but never at the cost of your truth.
When you have a strong financial foundation under control you can begin your ever needed money management. This leads to organizing your wealth growth. Wealth fuels your purpose in life to do what you want to do. Earning money is a small part of growing wealth. How you spend, save, and organize money into assets will develop a fully functioning system of possibility.
Where this all comes together is having that strong eighteen month financial foundation saved up. The 60/40 split rule only activates when you earned beyond your safety-net. This is a valuable truth to taking back control. That eighteen months is much greater than your three month safety-net. This means you can utilize the 60/40 split rule on every dollar earned.
Why it all works is because of how much time you’ll have to organize your month. Since you need three months for a safety-net it all works out for you to have fun! Sit back and smile for at least the first fifteen months of our career venture. This means over the course of a year you will be organizing money into your three needs of success to protect yourself, invest into yourself, and reward yourself.
How people look away from building their financial foundations has always blown my mind. It is better to save now through sacrifice than spend on your wants. How you build up that financial foundation is up to you. That is the variable. You need a financial foundation to step into your career’s field. Allow your calculated risk to have a fighting chance. Protect that risk by raising your odds upon its foundation!
All of this is nothing without your till to take action. The chance you should be taking is on breaking the system of misinformation taught downward from generation to generation. To change the mindset of who is surrounding you in that education. Are you learning how to do what you do only through your “ideas” or through other people? Are those people themselves making a living within their field without a survival job?
It is okay to change the way you believed it goes. There is always another way to succeed. This happens to be one of several ways to make it happen. You can rely on hoping that one in a million chance comes. You can know the right person at the right time. You can even have family in the business already. The point is, to develop wealth for a long career you need to always organize your month.
If you rely on your “work” or what you do to afford next month’s rent think again. You cannot rely on the unforeseen future that is not here yet. Surviving in the mentality that you’ll make money doing what you do forever is not a strong financial foundation. Learn to take back control of your life. Do this by having your own back when it comes to protecting each calculated chance. You’re worth every attempt in life!
If you’re new and got this far, please subscribe for future content. What you learned today is only as useful as what you do with it tomorrow. Research, research, research. I absolutely appreciate any and all the supporting love for this blog. Have questions? Let me know in the comments below! As always I’m Thomas J. Bellezza and remember your success is best with a team. So work together, grow together and rise together to bring reality to your dreams.