Financial Planning Month: What It Means For You

Did you know that October is financial planning month? Here at SAEN, we work hard to cultivate a community of passionate artists, and take seriously the responsibility of promoting sustainable financial practices to support that lifestyle. Therefore, we’re taking this opportunity to delve into some of the most important financial tips out there, that will make managing your art, business, and life easier and more comprehensible! As the month draws to a close, now is the perfect time to take a look at your finances and make sure you've got everything figured out as we move into 2027!

October was designated Financial Planning Month in 2002 by the FPA, or the Financial Planning Association, as a result of a report in which over half of Americans cited the high cost of living as an obstacle between them and their financial goals. Since then, not much has changed; prices continue to skyrocket, and the prices of everything, from rent to gas to groceries, seem to show no sign of decreasing any time soon. So what can we do? The most effective way to combat the costs is to educate ourselves on the ins and outs of the system, and do our best to plan ahead. 

This can look like an array of different things, but every strategy starts in the same place; doing a thorough evaluation of your current financial situation. This means looking at your income, any investments you may have, debt you may be in, and your regular expenses. This can feel intimidating; checking your credit score for the first time, or looking back on bank statements, can sometimes be a reality check we don’t want. But it’s essential in creating a plan that meets you where you’re at. 

Another important step is defining concrete goals for your finances. Maybe it’s paying off a credit card, or saving up for a down payment, or putting money aside for retirement. Whatever your financial hopes are, you should outline them clearly so you know what steps you need to take to make them a reality. These steps will most likely take the form of a set budget. Compare your spending to your income. Evaluate how much you’re able to set aside, while still living comfortably. Make sure you’re not spending above your means. These are all steps you can take to move the finish line of your financial goal closer. 

In the midst of all of this, most financial experts recommend keeping an emergency fund, which is something you can include in your monthly budget. This is exactly what it sounds like; a backup fund in case of an emergency, which could include unexpectedly losing your job, a dire medical expense, car or home repairs, or any other unforeseen cost. It may feel redundant to put money into a fund you may never need, especially if your budget feels stretched thin otherwise, but this cushion could potentially get you out of a sticky situation. Turbulence and surprise are an inevitable part of life, so it’s important we budget for them!

That being said, evaluating your insurance policies is another thing to consider as you’re planning for long-term financial success. Make sure the plan you’re paying for is the one that makes sense for you and your family. If you feel like you could benefit from additional coverage, do it! Like the emergency fund, it’s better to have it and not need it, than need it and not have it. 

Everyone’s financial plan will look different, depending on your lifestyle, income, dependents, and innumerable other factors. If you’re a business owner, for example, your plan may contain the extra step of separating your personal finances from your business finances. This is important for liability purposes, especially if you co-own a business. Keeping these separate means choosing the right business model (ie. sole propriety, an LLC, a partnership, or a corporation), building business credit that’s separate from your personal credit score, and obtaining a business tax ID. All of these are ways to ensure that your personal assets are protected, so both you and your business can economically thrive.

And if this all feels overwhelming, we get it. It’s a lot to consider, and the economic landscape changes so quickly it can feel impossible to get a grasp on things. This is why there are professional financial planners who can help you organize a successful, long term plan to set you up for success. After you’ve evaluated your personal fiscal situation, this may feel like the right option for you. Just make sure you do your research and find a reputable source that you trust. 

And while you’re planning your future financial success, SAEN will stay committed to bringing the newest economic opportunities to your door. We want you, as artists, to be as confident as you can be in managing your money, starting your own businesses, and prospering in all of your entrepreneurial endeavors. So make sure to tune back in next week to discover what new grants, fellowships, and prizes await aspiring artists, and how you can factor them into your future!