Arts & Numbers: A Financial Guide for Artists, Writers, Performers, and Other Members of the Creative Class

237 Pages·2013·5.345 MB·English

by  Elaine Grogan Luttrull

Copyright © 2013 by Elaine Grogan Luttrull. All rights reserved.
No part of this book may be reproduced or transmitted in any form or by any means,
electronic or mechanical, including photocopying, recording, or by any information storage
and retrieval system, without express written permission from the publisher.
Author photograph copyright © Kim Long
Arts & Numbers: A Financial Guide for Artists, Writers, Performers, and Other Members of
the Creative Class
Ebook edition 1.0 May 2013
Print ISBN: 978-1-932841-75-6
Ebook ISBN: 978-1-57284-717-0
Library of Congress Control Number: 2013010801
The advice contained herein is not intended to be a substitute for consultation with a
certified professional who has a complete understanding of your situation.
B2 is an imprint of Agate Publishing. Agate books are available in bulk at discount prices.
For more information, go to agatepublishing.com.
For my father, who taught me the secrets to success; my mother,
who made sure I enjoyed the ride; and my brother, who mastered it
all
CONTENTS
INTRODUCTION
Hi. It’s Lovely to Meet You
Have a Seat. Let’s Get Acquainted
Thanks for Picking Up This Book
CHAPTER 1: THE CREATIVE CLASS
Abby’s Secret
Numerical Illiteracy
Creative Professionals: We Are the 0.7 Percent
What Is the Industry Outlook for the Arts?
The Creative Professional Spectrum
One More Thought
CHAPTER 2: RISKY REWARDS
Noah’s Dilemma
Nonlinear Path
Noah’s Relief
CHAPTER 3: GOAL SETTING
Caroline’s Reluctance
Visualization
Quantifying Goals
Public Accountability
Tracking Progress
Abby’s Goal
Caroline’s Goal
Noah’s Goal
CHAPTER 4: DISCIPLINED SAVING
Elizabeth and Caroline—the Odd Couple
Different Choices
Compounding Interest
Investing
Controllable Factors
Caroline’s Realization
CHAPTER 5: PRACTICAL BUDGETING
Abby’s Resolve
Budgeting Basics
Budgeting Steps
Abby’s Festival Budget
CHAPTER 6: WHAT-IF ANALYSIS
Caroline’s Budget
What Is a What-If Analysis?
Caroline’s What-Ifs
CHAPTER 7: BUDGET VARIANCES
Caroline’s Disappointment
Comparing Actual versus Budget
Monitoring Variances
Caroline’s Monthly Updates
Caroline’s Budget Variances
Abby’s Budget Variances
CHAPTER 8: PERSONAL FINANCIAL STATEMENTS
Personal Profit and Loss Statement
Personal Balance Sheet
Caroline’s Financial Statements
The Connection between Financial Statements and Goals
Practice, Rinse, Repeat
CHAPTER 9: CASH CHALLENGES
Logan’s Cash
Cash Flow
Real Solution 1: Using Cash Reserves
The Tangibility of Cash
Real Solution 2: Anticipate the Timing of a Cash Shortage
Logan’s Cash Flow Model
Logan’s Envelopes
CHAPTER 10: MAKE MORE MONEY
Evelyn Struggles
Bridge Sources of Income
Evelyn Takes Control
Masochistic Volunteering
Evelyn’s Future Steps
CHAPTER 11: UNDERSTANDING TAXES
Derek’s Tax Appointment
Assorted Sources of Income
In Good Company
Tax Basics
Recordkeeping for Tax Purposes
Derek the Professional
CHAPTER 12: FINANCIAL MANAGEMENT SYSTEMS
Alison’s Technology Wish
Finding the Right Financial Management System
Outsourcing
Inventory Systems
Alison’s Solution
CHAPTER 13: THE BUSINESS PLAN
Ellen’s Elevator Pitch and Business Plan
Business Plan Components
Noah’s Happily Ever After
EPILOGUE
APPENDIX: BUDGETING
Other Costs
Space Costs
Equipment Costs
Technology Costs
Personnel Costs
Office Costs
Travel Costs
ACKNOWLEDGMENTS
NOTES
ADDITIONAL REFERENCES