ACTING TIPS

We all have spending habits—things that we regularly spend money on as if by reflex. Some of our spending habits are beneficial, some are a complete waste of money, but most lie in the murky waters of the in between. 

The thing to realize with all spending is that there is a limited amount of money that will come into your world over the course of your life. Our lives are finite, and so is our money. When you understand that all you have is 100 percent of your money to work with, each purchase suddenly carries a lot more weight. You can only spend each dollar once. And once it’s gone, it is never coming back. It won’t make its way to your savings account, your investment account, or your business.  

There is no hard and fast rule on what you should spend your money on, but some expenses are investments in your life or your business, and some are pure cost and offer only temporary joy. In New York City, I’m willing to bet that the most common spending habit is Starbucks. I, personally, spend $4.84 for a grande skim mocha latte pretty much every day. Another really common one—especially for performers—is a gym membership. My preferred option here is Mark Fisher Fitness (MFF) for which I pay $213.14 a month. So which is a cost and which is an investment?

Let’s first address the Starbucks issue. My grande skim mocha latte is $4.84 per beverage or $29.04 a week (6 cups) or $116.16 a month or $1,393.92 a year. The benefits include the chocolatey, caffeine goodness I crave in a branded cup that makes me feel super cool when I’m walking down the street. Far superior to those Dunkin’ Donuts or bodega coffee people. 

But it’s all a facade, because I am essentially throwing out $1,393.92 a year. $41,817.60 over 30 years of working. And what is the real value I’m getting? Sadly, I am stumped looking for an answer. Other examples of spending habits that could fit into this category: Seamless with those damn minimum payments, rents that are too high, manicures you could do at home, and audition clothing (Do you really need something new?).

As a serial gym joiner and quitter, I used to look at those membership fees as lost money. In fact, I wasted nearly $8,000 over the last 10 years on gyms I never used. I use my MFF membership to the max. Not only am I there a minimum of three times a week, but the information I get in the classes affects almost every aspect of my life. As Brian Patrick Murphy (co-founder and trainer extraordinaire) told me, MFF strives to provide training that enables you to “leave (MFF) and use it [the training] anywhere.” And according to my doctor, I have never been healthier. 

So for me, I see the value in this one. As a performer, you probably participate in acting classes, voice lessons, dance class, and/or master classes. These could very well fall into the category of worthwhile spending. However, that only applies if you are auditioning and applying what you learn to your craft. If you’re just spinning your wheels, the money you spend on classes has as much value as the money you spend late-night snacks.

There is, however, one more huge factor to figure in that we haven’t addressed. Can you afford it? Spending habits in and of themselves are neither good nor bad. It all depends on how they fit in with your cash flow. As I mentioned before, you only have 100 percent of your money to work with. And that’s not entirely true. You have about 70 percent of your money to work with, after taxes. Then you have rent or mortgage payments, so that accounts for about another 30 percent of income, leaving you with 40 percent. Ideal savings rates are 15–20 percent, which means that you really only have about 20–25 percent of your income for life.  

Where do you want to spend that money? What is most important to you?  What in your life looks like spending but is really an investment? The more hands on you are with your spending habits, the more they will reflect what is really important to you in life.

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Bailie Slevin is a financial consultant, founder of Entertaining Finance, and a Backstage Expert. For more information, check out Slevin’s full bio!