Hey Friends!

A new year is here, which means we’re all busy planning out our activities, our goals, and — let’s be honest, the part we love to avoid — our budgets. Money is a tough topic for a lot of musicians. Most of our training never touches on it, even though it’s one of the biggest factors in whether we get to keep doing this for a living. So this year, I wanted to sit down with my team and pull together the lessons that have actually mattered most in running my business.

These are our top ten tips, written specifically with musicians in mind.

1. Don’t get into debt to finance your music

It’s tempting to put a new instrument, studio time, or a tour on a credit card and figure it out later. But music income is unpredictable enough without adding interest payments to the mix. If you can’t pay cash for it now, find another way to get there.

2. Don’t get into debt, period

This one’s broader than just music expenses. Debt of any kind adds a fixed obligation on top of an already variable income, and that combination is where a lot of musicians get into trouble.

3. Have more than one income source

Teaching, session work, licensing, merch, royalties — whatever it looks like for you, having more than one stream of income means one slow month doesn’t sink you.

4. Keep separate accounts for your businesses

I learned this one the hard way. I used to float one business with money from another, and it was a mistake — it quietly drained the business that was thriving to prop up the one that wasn’t. Keep your accounts separate so you can actually see how each part of your business is doing, and let each one stand on its own.

5. Pay less tax with registered savings plans

This is one of the most underused tools available to musicians. Registered savings plans can lower what you owe at tax time while building your savings for the future — it’s worth understanding how they work for your situation. (See the resource below for the current rules.)

6. Save 10% of your income

Pay yourself first. Setting aside 10% before you spend on anything else builds a cushion for the slow seasons, which every musician has.

7. Don’t play for free

Unless it’s for a charity you passionately love and support, or an exchange with a colleague, don’t do it. Every time we play for free, we undermine the musicians who are trying to do this full time and get paid fairly for their work.

8. Have an annual budget — and look at your trajectory

Sit down once a year and actually look at where your current spending and saving habits are taking you. If you keep using your money exactly the way you are right now, where will you be in one year, five years, ten years? That question alone can be a wake-up call.

9. Get a good accountant who knows the entertainment industry

Musicians often have multiple, irregular income streams — royalties, gig fees, teaching income, licensing — and a generalist accountant may not know how to handle that well. Find one who works with entertainment industry clients and understands the landscape.

10. Invest in things that pay you regularly

Look for investments that are low-risk if you can’t afford to lose the money, and long-term if you can afford to wait. The goal is to build income that keeps paying you, even on the months you’re not gigging.

With the world in an unsteady place right now, planning is crucial. I hope this helps you as much as it’s helped me.

Sophie XX

A couple of resources if you want to go deeper

• TFSA contribution basics, straight from the CRA — a clear, official breakdown of how TFSA contribution room works and the current limits, useful if tip #5 has you wanting to learn more about registered savings plans.
• Financial planning for music industry professionals, from Regions Bank — a good overview of building a financial team, managing multiple income streams, and planning for retirement as a working musician.