Why Emergency Funds are Important for Screenwriters
“A wise bear always keeps a marmalade sandwich in his hat, in case of emergency.” - PADDINGTON
written and directed by Paul King
(2.5-minute read)
You might be sick of hearing me ramble on about emergency funds. I don’t blame you. It’s not the sexiest topic. You’d rather read about investments making tons of money or sticking it to the man by incorporating yourself. Get ready to be disappointed because here comes the emergency fund discussion.
STRIKES HAPPEN
Many of you are still recovering from the strike. If you were out of work for three-months before the strike that means you’ve been out of work for over a year now. Were you prepared financially for such a long break? If you pulled money from some account was there enough in that account and was it set aside for this scenario?
It’s not just strikes. You can easily be out of work for six-months at any given time. You want to make sure you always have enough money to bridge that gap.
IT CAN SAVE YOUR CAREER
If you had an emergency fund in place before the strike, or any period where you didn’t work for an extended period of time, then you were able to avoid panic. Some writers didn’t have the funds so now they are forced to get jobs elsewhere.
This can eat away at your creativity. The psychological toll it takes can be demoralizing in an already difficult industry. You want to be free to write that next script without the worry of bills.
The discussions with your agents and manager should be exciting and fulfilling. But some of these conversations are marred by the pressure of finding the next project. They may not be as productive as you need them to be. Knowing your bills are covered can free you from this mounting pressure and allow you to focus on your craft.
DON’T PAY EXTRA
If you use credit cards for emergencies then you’re probably paying interest. Now you’re being penalized by paying even more for your emergency because you didn’t set aside the funds. Not only did you have an unknown necessity pop up but now it’s a double whammy because you have to pay someone else to help fund it. Avoid paying extra for unforeseen circumstances by having the appropriate amount of money in a savings account.
IN THE END
By planning ahead you can avoid additional pitfalls of being out of work for an extended period of time. You can always start an Emergency Fund and start adding to it over time. If you pull from it then replenish it once you land that next gig.
If you’d like more information about Emergency Funds you can schedule a complimentary meeting HERE.
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