Investing Your Money As A Music Producer
Investing your money as a music producer should be your biggest priority when it comes to making money and growing your wealth. I love the music industry because its a place where you can earn a huge bulk of money in a short amount of time however if you cant keep hold of the money earned, then you'll back to broke within a few months/years. This is why you need to learn how and where to invest your money into a place where it'll will grow and make become more whilst you sip a pinacolada somewhere on the beach. Ok maybe not the beach, but investing gives you the opppotunity to spend your time doing something else whilst still making money. In this article, I wanna talk about the stock market and how ive made tens of thousands from it and how you can too.
As a music producer, I invest heavily into the stock market. I havent always understood the stock market - infact i found it something that only dudes in ties and briefcases only did. But 6 months ago, i took a course called 'The wealth squad' bu Chris Johnson and since then learnt how to cleverly invest my money into stocks. You can do the same! Download pretty much any stock buying app on your apple store, I use trading212 which is used in the UK but wherever you are, just download which ever pops up.
Once you have it downloaded, create an account, add a credit card and deposit whichever amount you can afford to invest. The key with stocks are:
1. Big low - Sell High.
2. Only invest what you can afford to lose.
3. Have a gameplan. Learn the difference between being a trader and being an investor.
Stock traders buy stock at low price and sell at a higher price within a short amount of time (days or weeks).
A Stock invester generally tend to buy low and sell high but holds for alot longer that days or weeks, usually months and years.
I enjoy short term trading (days and weeks) and moving on to the next buy.
Now your probably asking yourself - Do I have time to learn the stock market? it sounds incredibly boring.
My answer is: No you dont have to learn the markets although it would help but ultimately you no you dont.
Simply buy whats called an 'index fund'. An index fund is a basket of the best stocks out there all bundle into a group in which you can buy into the group. Its investing on auto-pilot.
The S&P 500 is popular index fund which has USA's top 500 performing companies inside it - all you have to do it buy the S&P 500 from any stock purchasing app and voila, youre investing. The S&P 500 typically grows on average 7% every year.
So if you invested 100,000 per year into the S&P, you'd get a return of around $7,000 profit. You literally made $7000 doing nothing. Your money worked for you and earned you $7000. Amazing right?
Investing your money as a music producer should become natural to you. If it dont then your gonna create a lifestyle where you always live hand to mouth. Theres no freedom or security in living hand to mouth.
And you also dont need to start with a whole leap of money. I take 10% of my beat sales, 10% of my ad revenue, 10% of my blog income and invest into stocks and more recently crypto (which works investment wise very much like the stock market).
Entertainers, especially artists and music producers have a tired reputation of being 'bad with money' which I want to help put an end too. There only bad with money because most entertainers DONT invest their money. They buy big cars, big houses, jewellry, boats and other stuff that does bring in ANY money. So what do you think eventually happens? yep, their money dries up.
When investing as a music producer, your money should NEVER dry up. Even if your career does, your money wont. Now that's what i call freedom and security.
So when it comes to investing as a music producer. How do you feel about investing after reading this? Do you invest your music production money? are you against investing? or perhaps just dont have time or energy to learn the stock market? Drop a comment and let me know below, I look forward to hearing from you (P.S.- I reply to all comments)