Overview of Bloomberg’s At the Money: Investing for Creative Types
Barry Ritholtz speaks with A.J. Ayers, co-founder of Brooklyn FI and author of Creative Money: New Financial Rules for Artists, Innovators, and Misfits. Ayers explains how people with irregular income can build financial security while continuing to pursue creative work. Her central message: money planning can give creatives more freedom to take artistic risks.
Build a Financial Plan Around Irregular Income
Traditional budgeting assumes a steady paycheck, but creative work often brings royalties, advances, commissions, or windfalls followed by lean periods. Ayers recommends treating yourself like a business: set up a separate checking account, pay yourself on a regular schedule, and save before spending. A large advance may need to last for years, so resist treating it as money to spend all at once.
Manage Windfalls and Taxes
Ayers offers a framework for handling a large payment:
- Spend 1% on something enjoyable.
- Give yourself time before making major decisions.
- Set aside money for taxes.
- Save and invest before taking on major expenses or funding the next project.
She says taxes are a common source of trouble for people receiving their first large check. If you’re unsure what you’ll owe, she suggests setting aside a substantial portion—50% as a cautious baseline, or 30% if that feels too high.
Separate Creative Work From Financial Worth
Ayers cautions that artistic output may not reliably support a living, since prices are subjective and depend on what buyers will pay. A steady job can act as a patron by providing income, benefits, and time to create. She also encourages artists with family financial support to consider using it without shame.
Make Career Risks With Runway
Before leaving a stable job to pursue creative work full time, Ayers recommends having at least a year of living expenses saved. Building a new career may take three to five years, and a partner’s reliable income or health coverage can make risk-taking more manageable.
Start Saving, Even in Small Amounts
For people who have avoided their finances, Ayers’s starting principle is “always be saving.” Even a small weekly contribution builds the habit, which can grow when income rises or a windfall arrives. She also urges creatives to begin investing early, rather than letting discomfort with the stock market keep them from building long-term security.