TRANSCRIPT:

Hi Greg Vojtanek here of Fade In Financial. I often get asked from screenwriters and directors, if I could give them one piece of advice, what would it be? I actually have two answers for that. The first one is an emergency fund. But the second one, without knowing your full situation, it's kind of difficult to answer that.

But here's the one piece of advice I generally do give: have separate bank accounts. I'm not talking about from your spouse. That may or may not work for your situation. But I'm referring to having a separate bank account for your bills and necessary living expenses, and a separate bank account for entertainment, travel, fun; that sort of thing.

You should also have a separate bank account for taxes, especially if you have a Loan-out S-Corp. You want to make sure the government is getting their fair share and you're not spending it.

But the other one, and why I recommend that, is because there's such thing as having too much money in one account. If you have, in excess of, three to four months worth of living expenses just sitting in your checking account, I think that's too much. You could either be putting that money to work by investing it, or you can take some of that money out and dedicate it to entertainment and fun and something else.

You also want to have that separate account for the entertainment for a couple of reasons. One, so you don’t feel guilty when spending it and thinking, “should I be spending this towards things that are more vital to my life?” because you’ve already got that part covered. It's all paid for. Your utilities and stuff are in a separate account. So now you have this entertainment fund which is supposed to be spent. You don't have to feel guilty, and you don't have to worry about if your bills are covered.

So that's just the one piece of advice that I do like to give. It certainly doesn't cover everything. Your situation is different. Do what is best for you. Thanks for watching.