How does saving help you as a photographer manage finances and achieve long-term business success?
Money is a topic many creative business owners shy away from, but the truth is, mastering it is crucial for your business and peace of mind. Saving helps you as a photographer. I had the incredible opportunity to talk with financial coach Gina Knox, and let me tell you, she’s got money wisdom that will blow your mind. Gina’s journey from creative to financial coach is full of lessons that any photographer—especially those with unpredictable income—needs to hear.
From Creative to Money Coach
Gina Knox is a unique financial coach who combines her passion for design with financial literacy. With a background in interaction design from the California College of the Arts, she learned to creatively solve problems. Growing up, her father taught her about money early on, making her knowledgeable about financial strategies like 529 plans by age 16.
Gina’s career includes five years at QuickBooks, where she analyzed the financial habits of small business owners through over 400 interviews. This experience inspired her to start a financial coaching business, helping creatives save over $7 million. Saving helps you as a photographer by applying these insights and strategies to your financial planning.
The Importance of Financial Literacy and Saving for Creatives
Let’s be real. Many creatives, especially photographers, don’t want to deal with money. It’s awkward, stressful, and let’s face it—financial jargon sounds like a foreign language. But as Gina said, ignoring your finances won’t make them go away. In fact, it’s the quickest way to land yourself in a constant cycle of financial stress.
I’m sure you’ve heard of Dave Ramsey’s advice about saving your first $1,000. Simple, right? But here’s where Gina takes things up a notch—she helps her clients create systems to not only save money but also pay themselves. Think about that for a second. How many of us are just scraping by, never quite sure how much we’ll take home each month? That’s where Gina’s strategies come in handy.
Photographers face variable income, making financial planning challenging. One month you’re busy, the next, it’s quiet. That’s why saving is crucial.
Prioritizing savings means you’re not just setting money aside for emergencies—saving helps you as a photographer by creating a financial buffer that ensures you can pay yourself consistently, regardless of business fluctuations. This approach helps you escape the financial rollercoaster and gain control over your income.
Gina’s clients have saved millions with her methods, proving that financial literacy and saving aren’t just “nice-to-haves.” They help you pay yourself regularly, reduce stress, stabilize your business, and ultimately enjoy your creative work more.
Breaking the Shame of Money and Inconsistent Income
Many creatives feel ashamed about handling money, believing they’re naturally bad with numbers. But let’s clear something up: money is just a language you haven’t learned yet. Just because you don’t speak the language of finance doesn’t mean you’re dumb. It’s time to ditch the shame and accept that, like any skill, handling money is something you can learn.
So, where does this shame come from? Often, we tie our financial mistakes to our self-worth, believing that poor financial decisions make us inherently bad at managing money.
Gina Knox, a financial coach, explains that we often believe we’ve done something wrong when we haven’t. Even multimillion-dollar companies experience revenue fluctuations. Debt isn’t a sign of failure either; many successful entrepreneurs use it to grow.
What about the times when we actually do mess up? The best thing you can do is fix the issue and move on. Take Gina’s story, for example. She once tanked her credit score because she accidentally closed a bank account that was auto-paying her credit card. It was a legitimate mistake, but she fixed it by setting up a new autopay system. Now, her credit is recovering. She could’ve let that mistake define her, but instead, she forgave herself and moved forward.
The point is, you don’t need to beat yourself up. If you did make a financial misstep, correct it and keep going. Saving helps you as a photographer by ensuring you can recover from mistakes, learn from them, and build a healthier money mindset. Holding onto that shame does nothing but weigh you down. Learn from it, adjust, and move on.
A Simple System for Saving $1K (or More) Without Stress
Now, onto the practical stuff—how do you actually save money when your income is all over the place? Spoiler: you don’t need a budget or consistent income to save your first $1,000. Seriously. Gina shared a simple system that doesn’t require cutting your expenses or doing complicated math.
The system involves setting up three bank accounts:
- Checking Account – This is where all your money flows in and out of your business.
- Working Capital Account – Think of this as your business’s savings account, but with a twist. It’s money you can use to invest in your business when needed.
- Tax Savings Account – A separate account where you stash away money for taxes every month.
Here’s the deal: when money hits your checking account, immediately transfer a set percentage into your working capital and tax savings accounts—no waiting or hoping for leftovers. For instance, allocate 10% of every deposit. This ensures you’re always saving, regardless of your earnings.
Saving helps you as a photographer by simplifying the saving process without complex budgets or tracking. It’s automatic and stress-free, fitting any income level. Whether you make $100 or $1,000, a portion goes straight to savings, growing over time without the budgeting hassle.
If you’re finding it hard to save and feel like your income isn’t enough, this method is a game-changer. You’ll be amazed at how quickly your savings grow, minus the stress and financial drama.
Set a Buffer to Manage Cash Flow
Think of your checking account as a fountain. Money flows in and out, and when it overflows, it should move into working capital. The first step in managing your cash flow is to set a buffer—an amount of money that you keep in your checking account to cover one month’s expenses and your owner’s pay. Saving supports photographers financially by ensuring you have the necessary funds to manage both regular expenses and income fluctuations.
To calculate your buffer:
- Determine Your Monthly Needs: Add your average business expenses and your owner’s pay to get a total. For instance, if your average business expenses are $3,000 and your owner’s pay is $2,000, your buffer should be $5,000.
- Monitor and Move Excess: Keep this buffer amount in your checking account. Any amount above this buffer should be transferred to your working capital. If your account exceeds the buffer amount, move the excess to ensure you’re not stockpiling unnecessary cash.
This method not only simplifies your cash flow management but also helps you avoid the pitfalls of having too much cash sitting idle. It ensures that you’re always prepared for unexpected expenses without hoarding money that could be better utilized elsewhere.
Pay Yourself Consistently
Many photographers struggle with paying themselves regularly because they’re unsure of how much they can afford. Knox emphasizes the importance of paying yourself consistently, regardless of fluctuations in your monthly income. Financial savings benefit photographers by providing a stable foundation for regular pay.
Here’s how to start:
- Analyze Your Finances: Review your business expenses and income over the last six months. Calculate your average monthly income and expenses. Subtract the average expenses from the average income to determine your average profit.
- Set Your Pay: If your average profit is positive, decide on a reasonable owner’s pay. For example, if your average profit is $1,275, you might start by paying yourself $750 each month. This way, you ensure you’re taking a fair salary while still leaving some profit in the business for leaner months.
- Make It a Priority: Treat your owner’s pay as a fixed expense. Don’t wait to see what’s left at the end of the month. Include it in your monthly spending plan and adjust as needed based on your financial health. Regularly paying yourself reinforces your value in the business and helps maintain financial stability.
Understand and Adjust Your Business Expenses
To maintain a healthy profit margin, it’s crucial to keep a close eye on your business expenses and adjust them as necessary. Knox advises:
- Track Your Expenses: Regularly review and categorize your business expenses. Make sure each expense contributes to the growth of your business. If you’re spending on things that don’t provide a clear ROI, it’s time to reconsider those expenditures.
- Optimize Spending: Look for areas where you can reallocate funds to more profitable aspects of your business. If your profit margins are negative, analyze your expenses and identify inefficiencies. Reinvest your money into areas that offer a higher return or improve your business’s overall profitability.
- Separate Finances: Keep personal and business finances separate. Use dedicated business bank accounts and credit cards to track your expenses more accurately. This separation simplifies bookkeeping and helps ensure you’re not missing out on valuable tax deductions.
Mastering Financial Strategies for Long-Term Success
Gina’s journey teaches us one major lesson: your creative brain can also be a money-making machine. With the right knowledge and strategies, you can tackle the financial side of your business just like you would any other creative challenge. And here’s the thing—you have to, if you want to grow.
By implementing these strategies—setting a buffer, paying yourself consistently, and understanding your business expenses—saving helps you as a photographer manage your finances better and set yourself up for long-term success. Remember, mastering these financial skills is crucial for building a sustainable business and achieving your financial goals.
For more insights, check out the resources and her free training on saving and managing finances effectively at the website of Gina Knox, or follow her on Instagram @ginaknox.
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