The Money Trap…

For over four decades now I’ve worked for myself in the arts.  I’ve tried leaving a few times… but in the end, this is where I wind up.  And because this is where I was obviously where I was meant to be, I’ve stuck around and tried to make the best of what there was to do.  There have been some lean years and there have been others that have been just great.  I don’t’ think any two have really been the same and because it’s an extremely dynamic industry you can’t rest on your laurels… you constantly have to produce something new and something fresh.  With all its drawbacks though, there have been some advantages as well and one of those advantages is that there are ways around the “money trap.”

What is the money trap?  The money trap is a plan set up by employers, bankers, the media and others to basically enslave you for the rest of your days.  Sure slavery was outlawed 150 years ago… so it can’t be practiced in exactly the same way… but it’s still there in a form and the “money trap” is what will continue to lure you back into its clutches!  Most people have a “job.”  And that job gives you a sense of security.  If you have a job that pays you a salary, benefits, takes care of your taxes and “guarantees” a set wage they it also perpetuates that sense of security.  Bankers take a look at that and assess how much you can afford in payments then proceed to extract as much as they can from you all the time charging interest for the privilege.  Merchants try to sell you things you don’t need… financed by the banks in payments allowing them to charge more money because your purchase is broken down in payments and those payments are tied to your salary.  Before you know it… you’ve fallen into the money trap!  Every time you get paid most of it is going right back out again to someone else.  A payment for this… a payment for that… and in the end… nothing left over for you!  This is a great deal for employers too because it means you’ll almost never quit… you can’t.  The payments and bills take so much of your money that you have no savings, no safety net to fall back on in the event of sickness, injury or other unforeseen problems.  So you just keep working.  Doing something you probably don’t even like… for someone you also don’t care for… all just to make ends meet.  Welcome to the MONEY TRAP!

Certainly some of us have fallen into this trap… but because we don’t have jobs that are easily defined with income that can’t be predicted then by and large we can’t get loans and big lines of credit.  I know that over the years I’ve often thought of throwing in the towel and joining the ranks of the “employed”  so I wouldn’t have to endure the challenges of working in the field of the arts.  We are definitely considered “high risk” as both self-employed AND artists!  But in the end, I think what really happens is that we are saved from this trap.  And if we do fall into it… we can do something about it.

If you’ve been one of the unfortunate who have been lured into this trap… then luckily there is a way out.  Initially the temptation is to focus on the things you can’t change.  You’re overwhelmed with all these payments, the price of everything you buy has begun to climb, the price of essentials like gas and food climb faster than your ability to pay for them… maybe you’ve taken out a short term “payday” type loan to meet your current obligations.  Now you’re really trapped!

So the solution is to look at the things you can change and to reevaluate your priorities.  FOCUS ON THE THINGS YOU CAN AFFECT AND CHANGE RATHER THAN THOSE THINGS OVER WHICH YOU HAVE NO CONTROL.  If you’re already wondering how you’ll ever afford what you need, it’s time to start a plan of action rather than continuing to wallow in sorrow for the situation you’ve created.  Make a careful evaluation of your circumstances, write down a plan and then begin to execute it!

#1.  Start “paring down” your life to those things you actually need to get by and to generate income.   Surprisingly the quality of your life won’t really change much and any change that does take place will be offset by the comfort of being able to pay your bills and have something left over.  Learn to differentiate between what you want and what you need.  You’ve been told you need this and you need that… but do you really?  The first thing you need to do is to eliminate what you don’t actually need to make money versus the things you want in life.  You don’t need 200 channels on your cable TV.  You need internet if you’re going to communicate with shows and customers.  Do you need 1000mps download speed?  Probably not.  Do you need an expensive car or truck with payments for the next 72 months?  I doubt it.  What you need is dependable transportation capable of moving your work.  Do you need to impress your kids, spouse or relatives with expensive gifts at the holidays?  No way.  Most of that stuff is just sitting in a closet or in the corner of a room somewhere and it’s not getting used anyway.  Do you need that personal watercraft or that 85” TV?  The reality is that you don’t need either. 

#2.  Look for additional opportunity.  How many times have you passed over a chance to make money because you were tired that morning… or because you thought it just didn’t pay enough to bother?  Well just like your current situation didn’t necessarily happen because of one big thing… the solution can come in the same package!  Sure you may only make $100 at that Farmer’s Market on Thursdays… but its $100 more than you had this morning!  Remember the phone call you had last week from an interested customer?  Call them back and see if this is the time you need your product or service.  Is there a new way to apply your skills to take advantage of money making opportunities during times you would normally not be making money?  Are there people who may buy what you sell that you didn’t think of before?  Could you do home parties during the week to sell your work?  Opportunities present themselves to those who look for them.  Actively seek them out!  Sometimes even if the payoff isn’t great at the beginning it will increase with a bit of cultivation!  Increasing your revenue provides fuel to further enhance your ability to save in other areas.  Even small amounts can add up when consistently achieved.

#3.  Learn to do things yourself.  You’d be surprised at how many things in life you can do without paying someone else to do it.  You may not have the machines to overhaul the engine in your car or truck… but you can certainly do a tune up, change your brakes or change the oil.  Need to paint a room, fix a pipe, repair a leaky faucet or unclog a toilet?  My guess is that these are well within the abilities of most people.  And if you don’t know how to do something… consult my favorite friend… YOUTUBE.  Personally I use it all the time to get explicit instructions on doing everything from fixing my car, to repairing the washing machine, to building a website.  If you were incompetent you wouldn’t be working in the field of the arts.  You just need to put that creativity to work in a different way.  You don’t need to pay thousands to have others do jobs you can do yourself!  Occasionally the things you currently own can’t be fixed when they break.  But a lot of times they can be repaired.  The biggest cost is usually labor.  Provide that yourself and you’ll save thousands throughout the year!

#4.  Shop around for products or services you actually need.   Once you’ve decided you need a product or service and it’s something you can’t either make or do yourself… take the time to find the best price on having someone perform that service.  Many people who do this work are just like you and they need to make money on the side too.  Most businesses charge waaaay more money than they are paying to have a job done.  The guy who is fixing your car for $150.00 per hour in the new car dealership is only making $20.00 per hour himself.  Contract with him directly to fix your car.  If your clothes washer or refrigerator just quit… look on Craigslist.org or ask friends who has a nice one available.  I’ve found great deals on appliances that are barely used or just need a bit of cleaning up to work perfectly… and they only cost a fraction of the price.

It doesn’t matter what you need… chances are you can find it for way less that you ever thought possible.  But like everything else… there is usually a trade-off.  You will need to be flexible about when you have the work done and you may need to participate in its completion.  You will need to compromise on that appliance and you may not get the newest innovations.  You may need to order parts for repairs online and wait a few days to get the biggest savings.

#5.  Trade what you can do… for what you can’t.  There are thousands of small businesses just like yours and the people who own them are faced with the same problems you are.  They need services and products just like you too.  So when you need something, consider trading.  You may not be able to fix the plumbing issue in your kitchen, but if you’re a wood worker you may be able to create something the plumber could use.  Maybe you can’t put shingles on your roof… but that roofer’s wife might really appreciate some of your jewelry.  And if one guy doesn’t want to trade… no problem.  Chances are the next guy will so just keep looking.  Evaluate your own skills and abilities and try to match them up.  You can even orchestrate third party trades.  You can do something for someone who can actually do something for the guy you want to provide the service or product.  The possibilities are endless and everyone is looking for a great value.  Keep your eyes open for the ability to provide it!

#6.  Purchase in advance of need.  When a good deal is available for something you know you’re going to need… get it then if the savings are substantial!  Try to anticipate a future purchase and begin looking for the best value before it becomes an absolute necessity to have it right now!  If you have a blowout from a worn tire you need to get your car on the road right away so you don’t have a lot of choice.  You’ll find yourself paying $200.00 for a $50.00 tire.  If you had shopped in advance and proactively purchased new tires when you could clearly see the need then you’d be able to get an entire set for the same money you just paid for one.  I buy all kinds of things in advance when the deals present themselves.  You know you’ll need an oil change for the car sooner or later… buy the oil when it’s on sale.  You’ll need paper or envelopes and you come across a fantastic price on 20,000 or them… snap them up!  If your canopy is starting to show a lot of wear… but it’s still functional… don’t wait until it’s tattered and falling down to the ground.  Buy that one from the new guy at the show who’s decided to quit even though he just bought his canopy last week!

Of course you can get carried away with this and you’ll be stockpiling everything from soup to nuts (yes, that’s me I’m describing) but if you stay within reason and make certain to purchase then things you need on a regular basis… or something you can pro-actively act upon then you’ll save a lot!

#7.  Be pro-active about repairs and maintenance.  In the field of healthcare it’s been known for a long time that it’s much less expensive to keep someone healthy than it is to attempt to cure someone who has become ill.  Well the same philosophy can be applied to a lot of things.  Maintenance is almost always less expensive than the repairs that result from the lack of it.  Sure you could save $30.00 not changing the oil in your car.  But at 50,000 miles when the engine blows up you’ll be looking at repairs in the thousands of dollars!  You know the bolts holding up your canopy are starting to wear… but gee, that would cost me $10.00 to repair and they are still holding up.  I guarantee you… they will fail at the most inappropriate time… like right before a show!  And you’ll lose all hundreds of dollars in sales.  There is no way the trade-off is worth it!  The same philosophy holds true with all the tools you have.  Lubricate, tighten, change filters, sharpen bits, keep a film of oil on saw blades… the list goes on and on… but proper maintenance of the things you use in the pursuit of your business will result in tremendous savings and increased reliability.

If you’ve fallen into the Money Trap… don’t allow your frustration to hamper your progress out of it!  Most of the time if you write everything down so you fully understand your situation… Objectively assess what you can do to work your way out… then work you plan you will succeed.  We become overwhelmed emotionally when the reality is often not as bad as our emotions are telling us.  The reason for writing things down is to help us move from the emotion of the situation to the intellectual understanding of it then to a plan to alleviate it!

As an artist or craftsman we have a much more difficult and less defined path through life than the typical person who falls into the money trap.  While we can’t depend on someone to provide a weekly salary, healthcare, retirement and the like… we also have opportunities those people lack.  We can use our creativity to our advantage and as a result provide solutions to our current situations rather than facing the brick wall someone else may only see.  We can turn the Money Trap from a road block we can’t change into a bump in the road we can avoid in the future.  Just put your creativity to work and you’ll see there is a way around it!