Planning for Rainy Days

“That’s great! I’ll get you my invoice and agreement over the weekend.”

I smiled with satisfaction as I completed the email and hit send.

Something very cool just happened.

I had just decided to buy a somewhat expensive prop based on the recommendation of a friend.

I had debated whether to buy it since I didn’t really ‘need’ it. But it was a much cooler and high-tech way to do one of my all-time favorite effects.

I finally said ‘yes’ and completed the transaction.

Literally 60 seconds later, I received confirmation that a new client was going forward with my show.

That was the email I just sent.

That one show more than covered the cost of the new prop.

Here’s the best part: All of this happened while I was backstage at a gig waiting for my show to begin.

We truly are in a great business. Done properly, we have the ability to generate money whenever we want.

I can’t count how many times over the last 20 years when an appliance would break, or we would get hit with a big car repair bill, or some other financial calamity.

Like clockwork, I’d book an additional unexpected show or two to pay for the ‘cash hiccup.’

When you are your own boss, you can increase your income.

When I was working at my old job, the most I could hope for was a few hours of overtime which still didn’t amount to much extra cash.

Working for someone else puts them in the driver's seat for how much you can make.

Don’t get me wrong. I’m not looking down on anyone who decides to keep magic as a part-time or even as a hobby thing.

If that’s you, great.

For me, it was different because I never had a job I enjoyed.

And I never made much at these other jobs.

The idea of plunking down $1000 - $3000 for a magic prop seemed forever out of reach.

But as my own boss, I get to set my own rules.

I also understand the pitfalls.

There are times when this business is definitely ‘feast or famine.’

April saw me earn around $5000 for the entire month of performing. But May I have about $14,000 in show income booked.

June is about the same.

Why do I tell you this?

Because as awesome as it is to be my own boss, I know how crucial it is to save for a rainy day.

In the early days of being self-employed, my wife thought it was silly that I wanted to put so much money into savings accounts.

I was only thinking of covering ourselves in case I had a bad month.

When the pandemic hit, my desire to save so much money made me look like a prophet to my wife.

That’s an exaggeration of course. But she admitted I was right to want to save so much.

During COVID, we had enough money in our various accounts that we could have lived completely off of our savings for a little over two years.

Thankfully, we were incorporated. That meant we each got unemployment pay and qualified for various grants, business loans, and other things.

Plus I (reluctantly) embraced virtual shows.

Consider this email a cautionary tale.

If you’re looking to go full-time, take a look at your monthly expenses.

Add everything up and multiply it by six.

Last I checked, that’s what some experts think you should have saved in case of a rainy day.

That doesn’t count long-term investments like IRAs and other plans.

You’ll also need to pay for your own health insurance if you live in the United States.

Many full-time magicians’ families have one member, usually a spouse, who has a ‘regular’ job and access to family health insurance.

If that’s you, great.

In our household, my wife and I are each self-employed.

So we pay for our health insurance out of pocket. And it’s stupid-expensive.

But we do it because of the nagging question, “What if?”

The point is you have to be prepared.

Being self-employed is a decision I’d make over and over again.

It all comes down to embracing financial responsibility.

I know small business owners (contractors, and the hairdresser my wife used to work for) who hide a ton of cash.

I think that’s a mistake. Not showing your full income affects your ability to qualify for big-ticket loans for cars and homes.

And it cuts into what you save for retirement or the proverbial rainy day.

My advice? Claim everything. Save for those rainy days. Squirrel away money for retirement.

Being self-employed is wonderful.

But it does come with more responsibilities.

Have a great week!

--Cris

P.S. By the way…whenever you’re ready, here are 4 ways I can help you grow your magic business to book more shows at higher fees:

 
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4. Work with me privately.

 
Need help in multiple areas? I can help you with your website, direct mail, email, or other marketing strategies. I also offer consulting services for crafting magic routines or even entire shows. Want to find out more? Shoot me an email at cris@theprofessionalmagicianclubpro.com.

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I have several professional routines, marketing courses, books, and other resources to boost your shows and make booking shows easier and more profitable. Check out my line of products HERE.

To find out more how I can help you book more shows at higher fees, click the button below to see my list of services.

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