// The Word This Week

Let's talk about the least rock-and-roll topic in existence: money management.

I know, I know. You got into music to express your tortured soul, not to build a spreadsheet. You want to be the next Kurt Cobain, not Warren Buffett.

But here's the cold, hard truth: The music industry is designed to extract maximum value while paying you minimum returns. And if you don't get smart about your money, you'll end up like countless artists before you – broke at 40, wondering where all those streaming pennies and merch dollars went.

Today we're having the conversation no one else wants to have with you: how to not just make money, but actually keep some of it.

THE MUSICIAN'S FINANCIAL REALITY CHECK

First, let's shatter some illusions:

Streaming won't pay your rent. At roughly $0.003-$0.005 per stream, you need about 200,000 monthly streams just to make minimum wage. And that's assuming you own 100% of your masters (spoiler: most artists don't).

Touring is expensive. Gas, hotels, food, gear maintenance – it adds up fast. That $500 gig might actually net you $50 after expenses if you're not careful.

Merch has margins. That $25 t-shirt probably cost you $8-12 to make. The rest isn't pure profit – it's covering your design costs, your merch person's cut, and hopefully some actual income.

Labels aren't banks. That advance? It's not a gift – it's a loan against your future earnings, with terms that would make payday lenders blush.

Depressed yet? Good. Now we can start solving the problem.

THE THREE BUCKETS APPROACH TO NOT DYING BROKE

Financial gurus love complex systems. I prefer simplicity. Here's the three-bucket approach I use and recommend to every artist I work with:

Bucket 1: Survival Money (50%)

This is for boring adult stuff:

• Rent/mortgage

• Utilities

• Food

• Healthcare

• Phone/internet

• Basic transportation

This money is sacred. It doesn't matter if your dream producer suddenly has an opening – if moving this money means you can't make rent, the answer is no.

Bucket 2: Business Money (30%)

This is for reinvesting in your career:

• Recording costs

• Gear maintenance and upgrades

• Marketing and promotion

• Website and online presence

• Professional development

• Team costs (if you have them)

This is the bucket that grows your career. It's tempting to skimp here when times are tight, but that's how careers stagnate.

Bucket 3: Future You Money (20%)

This is the bucket most musicians ignore completely:

• Emergency fund (aim for 3-6 months of expenses)

• Retirement savings (yes, even at 25)

• Tax savings (because the IRS doesn't care about your dreams)

• Big future purchases (house, better gear, etc.)

This money is untouchable. It's not for that impulse synth purchase or last-minute festival ticket. It's for the version of you that will exist in 10, 20, or 30 years – the one who will be very grateful you didn't blow it all on vintage guitar pedals.

"But Lance," I hear you whine, "I barely make enough to cover Bucket 1! How am I supposed to fill the other buckets?"

Fair point. But that's exactly why you need this system – to clearly see where you stand and what needs to change. Maybe you need more income streams. Maybe you need to cut expenses. Maybe you need both.

The buckets don't lie.

THE INCOME STREAMS YOU'RE PROBABLY IGNORING

Let's talk about diversification – not just because it's a fancy finance word, but because it's how musicians actually survive.

Beyond Streaming and Shows

• Sync licensing: Getting your music in ads, films, TV shows, and games. A single placement can outpay years of streaming.

• Publishing royalties: Are you registered with a PRO (ASCAP, BMI, SOCAN)? If not, you're leaving money on the table.

• Teaching: Your skills are valuable. One-on-one lessons, online courses, or workshops can provide steady income.

• Session work: Playing on other people's recordings or live shows can be a consistent income source.

• Production/engineering: If you have these skills, they're in demand and pay better than being the artist in many cases.

Beyond Music

• Content creation: YouTube, podcasting, or writing about music and your journey.

• Consulting: Help other artists with the areas you excel in.

• Creative services: Design, video editing, social media management for other artists or businesses.

The most financially stable musicians I know have at least 3-5 income streams. They don't rely on any single source to keep them afloat.

THE SPENDING TRAPS THAT KILL CAREERS

Now let's talk about the dark side: where the money goes.

The "Professional Image" Trap

You don't need designer clothes to make good music. You don't need the absolute latest gear to record great songs. You don't need to "look successful" to become successful.

Some of the most financially secure musicians I know still drive decade-old cars and shop at thrift stores. Not because they're broke – because they're smart.

The "Keeping Up" Trap

The music industry is built on smoke and mirrors. That artist flexing the Rolex? Probably in debt. The band with the luxury tour bus? Might be one bad month away from breaking up.

Stop comparing your financial reality to others' financial fiction.

The "Future Me Problem" Trap

"I'll start saving when I get that big sync deal." "I'll worry about taxes when I make real money." "I'll figure out retirement later."

This is how you end up as the cautionary tale – the once-successful artist now working retail in their 50s.

THE HABIT THAT CHANGES EVERYTHING: TRACKING

You don't need a finance degree. You don't need complex software. You just need to know where your money is going.

Start with the simplest possible tracking:

1. A notebook where you write down EVERY music-related expense

2. A separate note for EVERY source of income

3. Weekly review: What came in, what went out, what's left

Do this for one month and I guarantee you'll be shocked by what you find. Maybe it's the $200 in random gear accessories you didn't remember buying. Maybe it's the streaming income that's less than your monthly coffee budget. Maybe it's both.

Knowledge isn't just power – it's potential change.

THE UNCOMFORTABLE CONVERSATION: PRICING YOUR WORK

Most artists undercharge. Chronically. Severely. Self-destructively.

Why? Because of:

• Imposter syndrome ("I don't deserve to charge more")

• Fear of rejection ("They'll find someone cheaper")

• Lack of reference points ("I don't know what's fair")

• Desperation ("Some money is better than no money")

Here's a simple rule: If you're saying yes to every opportunity that comes your way, you're charging too little.

Your time, your talent, and your art have value. Price accordingly.

THE LAST WORD (FOR NOW)

Money talk makes artists uncomfortable. I get it. It feels dirty somehow, like we're supposed to be above material concerns.

But here's the reality: Financial stability creates artistic freedom. When you're not worried about making rent, you can take creative risks. When you have savings, you can turn down exploitative deals. When you have multiple income streams, you can weather the industry's inevitable storms.

The starving artist myth needs to die. It's not romantic – it's an industry tool to keep you desperate and exploitable.

If this resonated with you, my book "Build Your Foundation" goes deeper on all these financial frameworks with practical templates and strategies. Grab it at v13.store/products/build-your-foundation.

And if you know another artist who needs this reality check, forward this newsletter to them. We're all stronger when we're financially literate.

Until next time, mind your money so you can focus on your music.

—Lance

P.S. Next week: The sustainability talk. How to avoid burnout, build lasting creative practices, and actually enjoy this chaotic career you've chosen. Because what's the point of any of this if you're miserable?

If you want to join our community and learn from us in real-time, check out our V1LLAG3 Discord server. Ask questions about music, the industry, promotion, and anything else your heart desires. Just don’t ask us to write your essay (Lance might actually do it)