Budgeting and money advice for artists

Before investing lots of time in researching funding and finance options, work out how much – and what kind – of money you need.

A vintage illustration of an abacus — Chambers 1908 Abacus – Public domain book illustration

Planning your budget

We all need different levels of income to develop our practice – you need know what level is right for you.

Money Saving Expert has a great online budget tool to help with this.

Looking at your income needs across a year is a good way to plan. Some costs will be seasonal (like holidays, appearing at fairs or taking part in open studios). Key cost areas you should consider include:

Living costs
- rent / mortgage
- insurance, regular travel costs
- utilities
- childcare
- social life and hobbies
- holidays
- clothing
- food etc.

Savings and debts
- loan repayments
- savings
- pension contributions
- life insurance

Professional costs
- memberships or subscriptions
- professional insurance
- website hosting and development
- materials
- networking or research trips
- studio rent
- courses

Specific plans
- projects planned (like residencies, exhibitions, new work) should be included

Budgeting enables you to work out your costs, but you should also calculate a rate of pay . This should suit your stage of career, past experience and aspirations.

What kind of money do you need?

There are three main types of money you might be looking for.

Development capital
Working capital
Revenue

Each is used for different things:

	Development capital	Working capital	Revenue
Use for:	Growing your practice or developing skills to produce different kinds of work that will generate more income in the future. Making new work or projects Equipment	Paying bills on time Covering up-front costs before money comes in Making a batch of work for a specific project that you will sell	Living costs – rent, bills, food etc Core artistic costs – materials, studio etc Professional development costs – research and development, training courses etc
Examples	Grant Crowdfunding Business start-up grant Loan– if you are sure it will allow you to make more money in the future and are able to pay it back. Savings Shares in your business	Cash! Credit cards / overdraft to cover short-term up-front costs Loans for short-term expenses where future income will enable you to make repayments, and a profit Credit union	Job Fees Income from licensing or intellectual property Income from sublets Income from sales

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