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by Miata on May 17th, 2013
How often have you caught yourself saying: “I Can’t Afford It”? That’s one of the most disempowering phrases we can use in our creative lives. “I can’t afford it” is the financial equivalent of “I don’t deserve it” or “I’m not ready for it.” Of course you deserve it, and of course, you’re ready.
You just have to tell yourself that you are ready, you deserve it, and all you need is a plan.
Now perhaps there truly are some things you may not be able to afford. Like this yacht…
However, more often than not, you could (and should) be breaking down life into two columns:
- I don’t want it.
Or
- I am creating a plan to have it.
Let’s explore these two options:
I Don’t Want It
While listening to an organizing expert on the radio last week, I had a revelation. The woman said, “If you have less stuff, you can spend less time trying to organize.” It sounds obvious, doesn’t it? Yet, this is a powerful statement. You only have two hands. When those are full, there isn’t any other instrument in your life that you can use.
Maybe this isn’t as “wow” for you as it was for me, but there are some powerful nuggets of wisdom for your pocketbook in this thought:
1) Decide what you don’t want and sell it. Think you “can’t afford” that vacation this summer? Worried that you aren’t sure how to pay for those classes to improve your craft? Selling items reduces clutter and creates cash. Donate unsellable clutter to claim a tax break if you are able to use itemized deductions on your tax return.
2) Avoid buying new stuff. Your budget will heal if you only buy those items that you are going to use. Another question to ask: if I’m buying this, what item will I no longer use? Sell or donate the obsolete item.
3) Create lists of opportunities with your electronics and subscriptions. I have a stack of magazines waiting to be read. I’ve decided to read one a day until the stack is empty and then I’m going to discontinue the subscription. A good friend just disconnected cable and instead bought a Roku internet television box for each set.
Overall, here’s my point: is it that you “can’t afford it?”, which is disempowering, or is the truth that you “don’t need it,” which places you squarely in the driver’s seat in your life.
I’m Creating a Plan To Have It
Maybe that yacht is in your future. Sure, you can’t have it right now, but that doesn’t mean that you can’t afford it. As it says in Napoleon Hill’s book Think And Grow Rich, if you want something bad enough, trust your subconscious brain to find a way.
I’m frustrated when I hear people say, “I wish I could have….” If you are a wisher, stop it right now! Wishing for something is too risky. A financial planning friend of mine once said, “Risk is all that’s left when you’ve finished planning.” In short: plan more and there will be less risk that you’re not going to achieve your goal.
Here are some steps to have what you deserve:
1) Determine the cost. Every goal has a price tag, and it isn’t always calculated in dollars. In many cases, you may have to trade time or services for your goal. At times, this may make you realize that “I don’t really want it,” which is great! If you don’t want it, you can then move on to the next goal.
2) Plot the course to your goal. Set a reasonable timeframe and set milestones. You may not have all the answers right now, but if you know the cost and also the time, your brain will begin to create ways to attack the problem.
3) Work your plan and throw off discouragement. Often, the goal gets lost in the frustration that accompanies going after what you want. Really wanting something means sticking with your plan, even if it looks like you may need to modify the goal.
See how that works? When you tell yourself “I can’t afford it,” you’ve given up hope. If you set a plan in place, you’ll quickly learn if you really want the goal and if you’re willing to put in the effort. Maybe you don’t reach the yacht, but instead this nice boat:
As Michelangelo said, The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it.
Have fun dreaming!
by Miata on May 3rd, 2013
Remember high school? Were you a person who wore what everyone else wore or did you stand apart?
I’ll bet you didn’t follow the crowd. That’s rarely the artist’s way.
Why do I bring this up? I only mention it because it turns out that creative people – those who are willing to go against the grain – should be great investors. Consider this: a financial company (Blackrock) sent out an email recently discussing the fact that many investors chase “negative returns.” Apparently, people try to guess where the market is headed; and Blackrock detailed just how horrible people are at guessing. In fact, it appears, when most people decide to turn right, the best decision was to turn left.
There’s Value in Turning Left
Everyone’s heard the mantra “buy low/sell high.” This even applies to your art, doesn’t it? Often I meet struggling artists who wonder “How come I’m not a sensation yet?” then they proceed to take the same steps as the herd.
It didn’t work in high school and it isn’t going to work now.
To truly get ahead, in your art and with your money, you need to turn left when everyone turns right.
The things “the herd” respects…a strict calendar and adherence to a to-do list, completely kills our creative function. To be creative, we need to play. Everyone else buckles down on the to-do list. The creative person throws it away.
I’m not saying you should be irresponsible. On the contrary. I’m saying that in some cases the most responsible advice I can give you is to turn off your “I should do this because everyone else is doing it” function. By looking down different roads, exploring new opportunities, you’re not necessarily wasting time. You’re creating magic.
“All who wander are not lost” – JRR Tolkien
The big ah-ha in this “negative returns” story for me today is that as a creative person, you stand a better chance of being a good investor and saver than the average person because you’ve already decided to change your life. We’ve already made the lifestyle decisions that allow us to play a little more and explore a wider boundary. We can teach this to others who don’t clearly understand how important this is in life.
How Can Being Creative Help Me Invest?
If your neighbor says, “I’m thinking about buying XXXX art, what do you think?” and they aren’t familiar with the art community, you may already know that the work they’re describing is overvalued. Think the same way with your investment decisions. If your neighbor tells you to buy gold because everyone’s doing it, there’s probably limited upside.
Here are some things creatives should know better than the “mass market” audience:
1) It isn’t about today. If you wanted to make money right now, you would have become an accountant. Investors are patient with their money and don’t move quickly.
2) Ignore the popular press. Magazines will always tout the 10 Stocks You Need Now. Creative people don’t really care what we “need now.”
3) Everyone’s buying it! There is no gold rush in investing and there isn’t a quick buck to be made. The best approach is to get rich slowly through following the basics, like building an emergency reserve and diversifying your portfolio.
4) Sometimes you have to be creative to find success. One client of mine really wanted to retire in northern California but couldn’t afford it. She found partners to help her open a bed and breakfast with wonderful views. Sure, she has to work every day, but the sunset over a beautiful wooded lake make her job much easier.
5) You have to have vision to succeed. Many creative people I know enjoy imagining the “maybe” scenarios. By exploring all the paths available instead of focusing on just one, you’re able to reach solutions where others see only brick walls.
Too often, I find my creative clients are afraid of investing. Don’t be! Maybe you think “I won’t know what to do with my money!” It turns out, according to Blackrock, that the best moves with your money are generally found by ignoring the herd. Isn’t that refreshing?
by Miata on April 19th, 2013
Need to be reinvigorated? Try this secret formula
You know the feeling. You have determination, drive, and the skills to achieve your dreams. You’ve worked long, hard hours to reach your goal and it still seems miles out of site. You’re not letting go, but it’s starting to feel like you’re just spinning your wheels.
I learned a not-so-obvious solution for this common struggle, when I began studying productivity experts. I found it hard to believe at first, but they stressed that you’ll accomplish more by doing less at a time. If you plan regular breaks, you’ll work faster than if you maintain long, stressed-out hours. Because life (and your art) is a marathon, it’s better to work ten hour days and keep moving than it is to work a single 12 hour grind that leaves you fried for the next three days. That last two hours can put you in an early grave!
I found it difficult
Taking breaks didn’t make sense to me at first. I didn’t feel like I deserved them. When you’re on the road to success, you need to be at the wheel, don’t you? …and every pit stop slows you down.
What I didn’t realize at the time is that you don’t take breaks because you “deserve” them. You take them because you must have them to continue moving.
Ultra long distance runners—those crazy people who run 50 or 100 miles (or more) at a time–break regularly for food, drinks, or to chat. They know that the body is a collection of organs that all need rest. Even the winners of these super long races will break for ten to twenty minutes at a time, even though that’s putting them further behind the clock at that particular moment.
They’ve learned that by slowing down, they actually speed up in the long run!
Almost there…just needed a tweak
So, I began taking breaks while working on a new monologue, or developing course materials for Abundance Bound. They were good for me. I’d walk in the neighborhood, visit with friends, surf online, and let my mind wander. Still, the residue of my business and art continued to seep into these times. After a few breaks, I discovered that I wasn’t really taking a full “break.” I was using the walk for creative time to think about the work I was doing! While that was helpful over the short run, I was missing out on the key component of the break that makes it successful: I wasn’t completely away.
Then I discovered how I could escape AND rejuvenate. Read the rest of this entry »
by Miata on April 5th, 2013
I recently received this email from an actor who just finished working through the Artist’s Prosperity Home Study System:
Miata,
I just have to write and tell you how excited I am to have found you! I’ve been an actor for five years, struggling along with everyone else, and I finally decided that enough is enough: I need to put together a plan so I can really focus.
All of this time, I thought I had already been focusing on my art, when in reality, I was part-timing everything: my job, my family and my craft. Now, you’ve put me on a path that I don’t think I could have accomplished myself. I have an emergency fund, a separate checking account for my business, and for the first time, real hope for the future. While I have yet to score that elusive “great part,” my auditions are much better. I believe this is because I come in focused and without worrying about “how broke I am.” Sure, I still worry about money, but not in the “OMG, I need this role” desperate way that I have in the past.
Thank you again for what you do. I just wanted to let you know there are people out there who appreciate you very much.
Jessica
It is rewarding when we hear from folks who have started to take control of their financial futures, because the unfortunate truth is that many people simply never will.
I was just reading some statistics from a group called the Employee Benefit Research Institute. While most Abundance Bound readers are self-employed (and not employees of others), we frequently fall into these same traps and the results of their recent retirement survey weren’t encouraging: Read the rest of this entry »
by Miata on March 22nd, 2013
 In the 1986 classic movie Wall Street, Bud Fox (played by Charlie Sheen) is a young up-and-coming stockbroker who’s trying to make his mark in the world of finance. As he’s adjusting his tie before a big meeting with the titan Gordon Gekko, he says, “Life is made up of a few big moments. This is one of them.”
Well believe it or not, if you expect to receive a tax refund check, you’re coming up on one of your “big moments.”
Every year, many people blow this chance to get ahead. They spend their refund on a big, frivolous purchase or take a vacation. While these might feel like fine short term uses of a refund check, there are several that could change your life, remove your debt, or help you build your business or security.
Here are my five favorite uses for a refund check:
1) Wallop some debt. Here’s your big opportunity to focus on your art more. If you’re drowning in debt, you may find that your attention is focused more on side-jobs and instant income opportunities than the big picture. Clear your mind by getting rid of some debt payments.
For best results, tackle smaller debts first. Wiping these payments out creates breathing room for your budget. If possible, use the money you save on these payments to tackle bigger debts next. Soon you’ll be on your way to being “debt-free” and focused on your income opportunities instead of the mountain of bills on the counter. Read the rest of this entry »
by Miata on March 8th, 2013
The Art of Stealing Good Financial Habits
I was recently drawn to a new book by Austin Kleon called Steal Like an Artist. As an artist, who also works with many artists, I thought it was an important book to read…especially since I don’t feel like I (or any of my clients, for that matter) are thieves.
Kleon says that in order to maximize creativity, you must realize that everything has already been done before. Creativity is seldom about finding a new subject; it’s more about placing your own spin on existing work. I think this is true. Shakespeare’s plays are all stories that had already been told. He told them better. Monet wasn’t the first person to paint people, landscapes, or buildings. He just improved on the existing process.
What does this have to do with money?
So many people want to be great at money, but they don’t realize that to be good at something (ANYTHING), you should emulate the best work of the masters in that field. Only then will you begin to practice good money management techniques.
Artists often tell me that financial books are boring. My friends in the financial industry tell me that much in the art community puts them to sleep, too! The person who achieves greatness is the one who can dive into an area and keep practicing until they become great. The funny thing about becoming great? Those areas that used to be boring are suddenly some of the most exciting parts of the task, once you understand the nuances of the trade.
If you’re a painter, what would you say to a person who stated, “Painting like Jackson Pollack is simple!”? How does it feel if you’re an actor and someone remarks how easy it is to just pretend all day? You know the truth, don’t you? It takes years of practice.
It’s the same with money management. Read the rest of this entry »
by Miata on February 22nd, 2013
Reality television is amazing…while I’ll agree that most of it isn’t worth your time, I enjoy watching how some of the “stars”  who elegantly perform in public actually work their butts off behind the scenes. Lifting the curtain on the daily tasks of a true artist shows that success is more than just creating a product. In most cases, you have to be a financially savvy marketing guru to succeed.
You need to think of yourself and your art, as a business. When people come to me for help they often don’t see themselves in this light. They’re frustrated because they can’t get traction with their financial picture or with their craft.
I have good news. Solving both of these problems requires many of the same skills.
1. Determine how much money it takes to operate your financial life.
The most important part of your craft and your financial life is to make sure that you’re able to turn the lights on tomorrow. Sit down with a sheet of paper and list each item you must have to live another day. How much money is it? Read the rest of this entry »
by Miata on February 8th, 2013
Attacking Your Debt: What’s the Best Approach?
You may know the feeling: You’re at the bookstore and spy a wonderful new reference book that’ll help with your art….or you’re at the clothing store to pick out an outfit for an audition, and the perfect fit is just outside of your price range.
What’s a little credit card debt, right? You’ll be able to pay it off later. Hopefully.
Whether you took on debt by overspending on your craft, or your job doesn’t pay enough, debt is a weight that’s hard to relieve. That said, getting rid of debt is the first step when creating the  Abundance Bound mentality. According to financial site NerdWallet, the average household in the U.S. carries $15,422 in debt. Ouch. More meaningful is the fact that once people have debt, they’re likely to use credit more and more often. The flip side? 53.3% of the American population carries no debt at all.
We can’t solve the American debt problem, but we certainly can help add you to the 53% without debt, can’t we? How should you pay it down?
Much has been made in the financial press lately about how you should attack your debt. Researchers recently concluded that often what people think of as the smartest option hasn’t been the most effective way to pay down debt. Let’s look at two popular methods and review why you might want to choose the sub-optimal method to pay down your debt.
The Mathematically Sound Method To Pay Debt
If you want to take the fastest path to debt relief, and can stay on it, here’s the obvious solution: Read the rest of this entry »
by Miata on January 24th, 2013
Don’t taxes stink?
While I love the promise of a new year, the threat of an upcoming tax season is absolutely exhausting! I think we creatives have it doubly bad; we work from the energy of bending rules and pushing boundaries. There are no bendable boundaries or rules with the IRS. Instead, it’s a simple game: do it right, the first time, on time, and you win. Everything else is unacceptable.
 I tensed up writing that!
So, my goal at tax time is to control the amount of time and energy I have to spend on this task. If I can get my taxes filed and paid quickly and accurately, that’s about the biggest win I can imagine.
How do I do it? I’ll share with you some secrets that hopefully will make your tax season a little less stressful so you can focus on your art and not on April 15th. Read the rest of this entry »
by Miata on January 10th, 2013
A couple weeks ago I wrote about the strange place I found inspiration for my 2013 goals. This week, I’d like to address New Year’s Resolutions head-on. Every year millions of people write out a fresh list of goals in the hopes of making the next twelve months better than the previous dozen. We creative people are no exception: in our world, it’s often the well-disciplined artist who ends up on the road to loftier goals, while the dreamer without clear, concise milestones spends another year chasing the same first-tier plans (and never can figure out why he doesn’t achieve anything….). You know the ones; they’re the artists with grand ideas, fantastic plans, and nothing to show for it except a series of excuses.
 One mistake that even big businesspeople make, is that they set professional goals, but forget about the fuel to get them there. It might not be the most glamorous activity, but remember your financial goals; don’t just focus on your art. By making sure that your financial picture is healthy, you’re bound to have the fuel ready to have a wonderful 2013 in your craft. By placing well-executed goals, you’ll get where you want to go faster, and with less bumps along the road.
Some Financial Goals to Act On
Emergency Fund – If you don’t have a cash reserve, now’s the time to start one. Anything can happen…and probably will….in 2013, so you’ll want the protection to know that when bad news occurs, you’ve got the money in the bank to easily get through it.
What’s a good reserve? Generally, I recommend having at least three months expenses in a safe place away from market fluctuation (like a bank account). Read the rest of this entry »
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