The creator economy is unstoppable. The source of income for content creators isn’t a secret from anyone. However, how do they manage their finances along the road?
An effective wealth management strategy helps them plan and budget for the future. From building a sustainable business and investing in growth opportunities to allocating resources, proper financial practices enable digital creators to weather any storm.
Understanding finances also allowed content creators to turn their side hustle into a full-blown profitable profession. Here are the standard financial management habits of top creators.
Open a Business Account
A personal checking account will be out of the picture as the income grows. Like any entrepreneur, top content creators open a business account to keep their earnings separate. There’s a reason they are also famously called solopreneurs.
Content creators diversify their income streams to earn more, including brand sponsorships, collaborations, affiliate links, and merch sales. You already know how rich is Vegas Matt. The famous gambling influencer has a million dollars worth due to his diverse income stream. Thus, a business account will be a one-stop space for content creators to collect revenue from all sources.
The bank passbook allows famous creators to track the inflow and outflow of money whenever they want. It also sorts the taxation process during the yearly audits. That said, a separate account for business income and expenses makes tax filing a seamless experience for creators.
Maintain Excel Sheets
There is no simpler option for tracking finances than Google Excel Sheets. It’s one of the best and cheapest solutions for staying organized while managing monthly or yearly wealth.
A content creator can update all their invoice with dates, project details, and client names on the spreadsheets. They can even put filters in place to update the details of regular clients quickly. Professionals can also cover expenses and costs related to their content creation business in this sheet.
Download Finance Management Tools
Top content creators understand the significance of taking control of their growing wealth. For digital creators, cash flow can be less predictable. Setting up a financial tracking system sorts the revenue streams for these professionals.
So, they download financial apps that make finance management a hassle-free process. Even creators without an accounting background can use these user-friendly tools easily. With the right money management resources, they can take control of their future financial goals and budget planning.
If creators have a team, they download advanced tools to schedule regular payments. There are income management apps that automatically transfer funds to chosen accounts at a set time.
Further, they use apps to scan and organize paper receipts to maintain taxes and understand their spending patterns.
Hire a Tax Professional
Nobody can be a jack of all trades. Content creators know that managing their money and business demands plenty of paperwork. Due to various laws and regulations, it can be a complicated process for many.
Thus, they always take the assistance of a certified tax consultant to manage their finances year-round. Hiring a financial advisor also guarantees financial stability and success for the top creators.
It helps them understand the difference between personal and business accounting expenses. The taxation consultants also help creators know whether they qualify for tax write-offs. Digital creators’ everyday expenses include equipment costs, internet bills, marketing expenses, software purchases, travel, sports event tickets, platform fees, and website hosting fees.
Thus, self-employed creators can seamlessly pay quarterly and annual taxes with the help of these professionals.
Set Financial Goals
The best content creators follow budgeting and expense management practices to ensure their business lasts long.
Defining financial goals allows creators to save for new equipment, invest in tax-advantaged accounts, or plan for retirement. It also gives them a clear picture of where the money is going and where they can cut costs to save a few bucks.
Organizational Practices
Financial organization is invaluable for any professional, including content creators. It allows them to monitor business transactions, project deadlines, and tax calculations without complications.
For instance, many professionals create a content calendar to ensure consistency in engaging with their target audience.
Ideally, creators can stay focused on their short and long-term business goals with organizational skills.
FAQs
1. What’s the best app to help with finances?
CountAbout, YNAB, Money Manager, Empower Personal Dashboard, and EveryDollar are the best finance management apps for content creators.
2. What services are provided by financial advisors to content creators?
A financial advisor offers tax filing and auditing services to self-employed individuals like content creators. These professionals can handle income, expenses, and investments by developing an effective wealth management plan based on the creator’s business goals. Hence, digital creators can make informed financial decisions, such as reducing debt, writing off taxes, new investment plans, and retirement savings.
3. What are the taxation laws for content creators in the US?
According to US taxation laws, content creators are self-employed. Anyone who generates over $400 in income through content creation must file and pay taxes.
Wrapping It Up
Whether it’s a side hustle, passion, or full-time profession, wealth management is integral for any content creator. Tracking expenses helps them stay on top of their game while ensuring they save enough to boost revenue.
Hence, income management is a cornerstone for their business’ longevity and success. If you also want to follow in the footsteps of your favorite digital creator, adopt money management habits for a profitable journey.
