introduction and some advice, please

[scc]

hi-just joined the forum, looking forward to learning from all of you. Here's my deal. I'm an actor, doing film, voiceovers, etc,. Last year I made about 60,000, this year I'm on course to make about 45-50,000. My problem is, I don't know how to save consistently. I still live check to check, and I don't have much in the bank. How frequently I get paid changes, because a lot of it is residuals,(based on when and how many times a commercial is played) so some months I get a bunch of money, some months I'm on unemployment. I have an ING account, a sharebuilder IRA and I just opened and e-bullion account, balances on all pretty low. Any ideas on how I can make myself save/invest on a regular basis?
Thanks

[terry1156]

Welcome to the site. First, a couple of questions. Do you have any type of emergency fund at the moment - a few $1000 that you can access on short notice? That would be the place to start if you don't already have it.

Do you have any credit card debt?

On the lean months, are you able to live on the money you have on hand or do you go into credit card debt during those months?

[Tree0164]

Hello and welcome!

What are your living expenses? House, clothing, food, transportation. Can you cover that each month on your lowest possible amount coming in.

You should do your budget based up what is really the lowest amount that you get each month. We do that because hubby's pay is commission and it can vary by over a thousand or two per month. Anything extra is gravy.

[scc]

hi-no emergency fund, and I currently have low cc debt,I've been rebuilding my credit, paying off past debts, it 'll be good by year's end. I use my debit card for everything, since any credit card I get right now will be of the secured variety, or have a high interest rate due to my current fico score.

my monthly nut:
rent: 795 a month
car payment 327.15
cable/internet: 115
cell: 65.00
home phone: 55.00
gas/ electric: 85.00 every other month
food: 200
entertainment: 200
also, I spend lots on headshots, trade publications, etc. The thing about acting is it's a very expensive pursuit, with very few workdays and crazy financial fluctuation. I know I need a budget, working on that.

[terry1156]

Before you start investing, get the remainder of you credit card debt paid off since you are likely paying more in interest on it than you can earn from any investments. Next you want to build an emergenct fund so you don't have to use your credit card again. ING would be a good place to keep that.

As Theresa mentioned, try making a budget that you can live on based on the least amount you'll receive during a month. If you can do that and stick to it for awhile, you should be able to build up your emergency fund rather quickly.

[2moretrees]

Do you need both a cell and a land line? Your phone expenses seem high

[terry1156]

Originally Posted by scc

also, I spend lots on headshots, trade publications, etc. The thing about acting is it's a very expensive pursuit.

You should be able to write all those off against your income on your taxes

[scc]

thanks for the suggestions, I have a fax on the landline that I use regularly, that's why I keep it, and I do write off quite a bit at tax time. I guess this really comes down to budgeting and really focusing on money mangement. us creative types have never been very good at that

[pennywise]

I never did pay off bills when I started my savings plan (net worth >350000, so I know what I am talking about). The suggestion I have is the one I did. When you have extra money you have to lock it so you can't touch it, forcing yourself to seek more money to pay for the currents. Once you lock it, typically you will not want to get into it. Small amounts in U.S. savings bonds and look for CD's paying the best rate - do not just use an internet bank for convenience. ING and EMIGRANT ARE NOT PAYING THE BEST RATE - I have 4.10 on 12 months. Just as you shop for other items shop your savings for the best rate. This should motivate you to work more and seek more work or a secondary job. Pay the credit card down (what is the balance?). Do NOT charge any more if you have a balance, period.

[Tree0164]

That comes to about 1800 a month basis. On average what are you taking home each month?

You need to create some categories for those irregular expenses such as your headshots. Set aside in a bank account some money for them.

Also you mentioned that you were paying off some past debt. I don't see that in your budget.

[marglo]

Set up a budget and stick to it. Then put every bit of money you can squeeze out to do the following in this order:
1. Get current if you're behind on any bills.
2. Save $1000 for EF
3. Pay off debt

To me, these are the first steps. After that you can start saving more and hopefully will also begin to earn more.