So here goes: Another not-ever-talked-about, touchy, unusual area for perusal by an acting teacher. But then again, I’m sure I’m not the only teacher who, upon asking after a student who is missing from class, hears in response an endless litany of financial issues that keep said student from affording tuition. And tuition is sometimes the least of it—the same student is driving without insurance, has overdue parking tickets, an irate landlord, unpaid credit cards, etc., ad nauseum. The issue of financial responsibility seems to hit the artist at all points during his or her career, which can certainly have its boom and bust cycles.
My belief is that money is a resource to be managed with simple, real, practical actions. You assess your income, set up a budget listed by priorities, keep to this budget in a disciplined fashion, and proceed. No shopping sprees, no clubbing, no expensive restaurant binges. Keep an eye on your cash layouts. I have found that students struggling to pay for class will spend $10 or more a day on little purchases like coffee, magazines, and sweets. That’s upwards of $300 a month. Credit card debt—wow, is this prevalent! But even five-digit credit card debt can be handled. The first step is just to stop using the damned things. Use ATM debit cards instead, the kind that take your purchase directly from your checking account, instead of a credit card you inevitably avoid paying off. And if you’re paying exorbitant interest, you can restructure the debt at a lower rate, consolidate it so you have one payment—easier to pay off.
But here’s the number one simple change you can make to change your financial life forever. Ready? Save ten percent of any income before you do anything else. And then never, ever, ever touch it. Did you receive a check for $100? Put $10 away first. Did you make $50 in tips last night? Put $5 in an envelope and get it to the bank. You should do this regardless of debt, regardless of what bills are unpaid. You do this first, pay yourself first, then deal with the mess that is left.
This puts me at odds with those who say you should tackle high-interest debt before you start saving. They’re right about the math of it, but I disagree because the savings is about you, it’s about your future, it’s about saying your future starts right now, regardless of the current situation. And don’t touch the savings. Ever. Later on you can move it somewhere, to an asset, a building, a business, something that makes more money for you. But never ever withdraw from your savings to handle an expense or bill or debt, or to “celebrate” by buying something you can’t really afford. Because then you’ll constantly be starting all over again.
This 10% savings is not a rainy day fund. If you want a rainy day fund, that’s another 10%. The first 10% is your “Someday I want a life where I don’t worry about my day-to-day expenses and I can focus on my art and my acting and what-I-like-to-do fund.” Disciplined savings is not about scarcity, about endless sacrifice. Life is full of many things that can enrich us, educate us, inspire us, make us happy. So if you, every once in a while, come across something that does this in some way, a painting, or an old Jaguar, as I did when I was younger, well, I got them. I increased my debts by doing so. But then I worked my ass off to earn more, and I didn’t take the purchase out of my savings. Your level of debt may go up and down, but the savings you simply do not touch.
Discipline is the key. Saving 10% off the top will get things rolling, but you still have to work hard. If you need more money, find a day job that doesn’t interfere with your auditions or rehearsals, or deplete your energy. As a young man in New York, I had a job on a moving truck—we worked the first four days and the last four days of each month, when people did all their moving. The rest of the time I was free. This is causative action, where you take the responsibility rather than being a victim of circumstance. Life is real. Money is real. There is nothing mystical or magical or awesome about financial responsibility. An excellent book to read about handling money is The Richest Man in Babylon.