Build a Financial Safety Net

And Forget Feast or Famine

You’re in the video production game, you see the latest camera, an 8K behemoth with more Ai than the Terminator's mum. You’re not even thinking about how much money it really costs, you just gotta have it. We all know the story.

But what happens when the money is spent and the camera just sits around doing nothing? Our business is one of feast or famine, and a lot of video professionals I know aren't the best with managing their finances, and, to be honest, a hand to mouth existence is no way to thrive.

Save money where you can.

To be brutally honest, when times are lean, they are extremely lean. The stress of an empty bank account is sapping and demoralizing. It's tough taking on projects just to make ends meet, and even worse accepting jobs for reduced fees, and without realizing. normalizing those lower rates. It can be a vicious circle, but it doesn't have to be.

Time to Build A Financial Safety Net

Here's the rule I employ; 6 Months of Reserves. Yup, 6 months of cash to cover your debts. Sounds daunting but actually easier than you think. It's about making a plan and sticking to it, none negotiable. How should you structure your finances to ensure your time during those lean months isn’t miserable?

• The Six-Month Rule: Start with 3 months and then move to six months.

• Audit Your Subscriptions: Start by going through your bank statement. Look at all the apps you have subscriptions to, all your monthly payments. Be brutal, where can you save, what don't you need and where can you find money to put away?

• Create a Real Budget: Come up with a real budget of what your costs are per month and then calculate your target.

• Open a Separate Account: This is a must. Open a dedicated account that is only for your rainy day reserve. understand the reserve you need to live a more peaceful life.

• Savings Account Options: You want to look for a high-interest account with easy access. You don’t want to be tied into a fixed deposit for months because if you need the money, you need the money. Most savings accounts are free and some of the online-only banks have excellent rates. Also look at an Exchange Traded Funds (ETF). In South Africa, you can find these in places like Easy Equities or Sygnia. Find an ETF that is moderate and safe, that offers something within or above inflation.

Keep those financial nightmares away

Not as Hard as you Think

It might seem overwhelming to start with, but have a plan and a goal. I'll admit, it takes time and discipline, this is not an overnight thing. Set aside a small amount each month, when you have a good month, add a little extra. Research and follow personal finance people, there's plenty around like Nischa Shah who will give you great advice and a deeper understanding of your finances.

A Note on Tax-Free Savings (South Africa)

In South Africa, we have a Tax-Free Savings Account, but do not use this as your rainy-day fund. This is an incredible device where you can put up to R500,000 and the government can never touch any of the profits, not matter what how much you make. Use that as part of your retirement funding.

Managing finances feels complicated, but it just takes time and patience. I'm not a financial advisor and don't pretend to be one, so make sure to do your own research. Most importantly, it doesn’t have to be feast or famine. Start putting money away and work towards somebody who is thinking and being creative rather than having sleepless nights.