I want to preface this by saying I’m not a financial expert, I can’t tell actors like you what to do with your money. What I can do is offer some tips and insight to help you to shape a healthier relationship with your personal finances, understanding calculated risks vs. risky behavior, and some common money misconceptions that actors deal with. It’s not a ‘hush hush’ topic, but it isn’t talked about as much as it should be, and that can cause serious harm to an actor’s career.
You’re Either a Working Actor, Or You’re Forever an ‘Aspiring Actor’
Actors can’t balance their acting career with a 9-5 job, that’s an indisputable fact. They can try, but becoming a working actor means working on your acting career full-time. Doing both is a one-way ticket to burnout, and that’s guaranteed to interfere with your acting career no matter how focused you become. Making that transition requires energy and the right state of mind, and that’s just not possible for someone who is running on fumes.
That said, you shouldn’t force yourself to leave your paying jobs if you’re not financially ready to do so. Take some time to analyze your expenses. How much does it cost to be ‘you’? Include the big things like rent, bills, medical expenses, acting classes, but also the things you do for fun – independent actors don’t just make money on their own terms, they generate income to support their ideal lifestyle.
Create a rough budget that accounts for three months worth of expenses. That’s about the bare minimum you would want to have in the bank if you’re leaving a 9-5 to pursue full-time financial and creative independence. But let’s face it, life happens, and if you need to stop working because of a broken leg or caring for a sick family member, you should have enough put aside to get through putting your career on pause. That is a lot more difficult to calculate, and it’s often those ‘difficult calculations’ and ‘what ifs?’ that cause people to stay within the safety of a 9-5.
What is the Scarcity Mindset?
The fear of not having enough is called ‘scarcity mindset’. It’s not exclusive to finances, it applies to time too. It’s like FOMO in reverse- rather than being afraid of missing out, you’re afraid of not having enough fall back on, so you don’t even try.
Money is a very personal and sensitive subject for some. If you’re one of those people, you need to change that mentality to survive in the entertainment industry. You will constantly find yourself negotiating with investors, financiers, and clients. You will have to discuss payment with your own production team, freelancers, and other collaborators on your creative projects.
You NEED to become comfortable discussing money and finances with other people, and the best way to start is by getting comfortable with your own finances. If you’re really that worried about not having enough, flip the narrative around. Focus that mental energy on coming up with creative ways to earn more, ideally ways that naturally lend themselves to leaving your 9-5.
The Right Career Direction
If you don’t ditch the scarcity mindset, it will haunt you in your acting career. Brands accomplish many things for working actors including-
- Developing focused assets
- Telling your talent agent/manager how to market you
- Establishing general direction
That last one is huge. General direction is how you know which roles to pursue so you can develop those focused assets, which your talent reps will use to market you. A brand is what allows you to turn roles down and pursue the ones that you know you’ll enjoy, the ones that resonate with you at your core.
Scarcity mindset does the exact opposite. Instead you’ll find yourself so desperate for work that you take any project that comes your way, even if it doesn’t work for you. Hustling and desperation don’t go together; hustling is about building your empire, and you can’t build a foundation on something as shaky and unstable as desperation. That kind of lifestyle isn’t sustainable, and can sometimes result in going back to traditional employment to support your acting career. You’re back to where you started.
Paying Your Way Into Hollywood (Not Really)
There are plenty of independent working actors who are smart with their savings, except they’re saving for all the wrong reasons. Acting classes and coaches are a must, but there’s something totally unnecessary that most actors are convinced they need- acting school.
If you want to properly manage your time and money, don’t blow it on acting school. Sure, there is plenty to learn, but it doesn’t prepare you for (not to sound like a boomer) the real world. Acting school doesn’t teach you about the business of acting. It doesn’t even teach actors about money management! And just about everything you learn in acting school can be learned somewhere else, like with an acting coach or independent pursuits.
Other actors save up so they can move to Hollywood. There’s nothing wrong with that, but in this digital age you don’t need to live here to be an actor. There are growing markets in New York, Chicago, and Atlanta, to name a few. If relocating to LA makes sense in the greater context of your career strategy, then you should definitely take it into consideration as you put your budget together. It’s not a must, nor is it something you have to do right away. Moving too soon is a common mistake new actors make, so get active and build your assets in your local market before relocating if possible. If you do, you’ll have a much easier time making money here!
Ready to kick off your acting career, but aren’t sure how to start? Reserve your spot in our acting career development course, and take your acting career to the next level!