Disclosure: Nothing in this blog should be taken as investment advice. Do your own research. This blog is supported by advertising and affiliate links... Links to products and/or services on this blog may include links to affiliate programs that provide commissions to this blog. All of the content in this blog is 100% my own opinion.
If you’re an artist, financial troubles can dampen your creativity… There is a link between freedom and debt.
Debts can kill dreams.
So artists often accept that they may never make money from their work.
They think small, work hard and stay frugal.
Don’t think small with your business or art… But with your living situation.
Pressure to perform creatively can have a negative effect on production.
A research paper titled “Perspectives on the Social Psychology of Creativity” by Teresa M. Amabile and Julianna Pillemer at Harvard Business School states:
“…the motivation to do creative work, which can surely shift from day to day and even moment to moment, appeared to be a factor in the fluctuating performance of even widely-recognized creative individuals. Poet Anne Sexton demonstrated a generally consistent drive to write simply because she loved doing so. However, there were times in her life when the promise of fame or money, urging from mentors to create good work, or family obligations, threatened to hamper her ability to perform at her best.”
Yes, we all need a place to live… But unless you own a multi-family property and the other units pay for your mortgage, your home is not an asset…
Most people who buy a single family home in America don’t make money from it after all the costs are added up:
- Mortgage interest
- Property taxes
- Broker commissions
- Property improvements
- Other expenses
Add all these up over time and you may experience a loss.
This is probably why the “tiny home” concept, as extreme as it is, is an attractive concept to many millennials.
Your home may not be an asset, but your creative pursuits should be.
With hard work you creativity can be turned into a business, which is an asset… But most people don’t treat their art as a business.
Be the exception… Be sure to consider creating an inexpensive LLC or S-corp for your business, then treat it like the professional, creative asset that it is.