DA-TOPIC 3 – Artists Can Be Chronic Under Earners

Typically as artists we are either not valued by family, or maybe our parents were creative and we learned bad habits from them or we have the “them vs us” thing, or maybe we’ve never been around anyone who has paid for art so we don’t know how to price our work.  There are many contributing factors to the general result that often times as artists we are chronic under earners.
AND,
As artists our creativity isn’t limited to one avenue but rather that it expresses itself in all facets of our lives.  But when that creativity is applied to our money and finances it can sometimes get us into trouble.

Marjie A. recalls, “A speaker at a DA meeting once said ‘if I looked in my check book and I had checks then I believed I had money’.”  DA says don’t do unsecured debt like student loans or credit card debt – when you do you are betting against your own future.

“Being an honest straightforward person has really served me well.”  Marjie said, “And that means being honest with myself.”

A powerful tool within Debtors Anonymous is the Pressure Relief Group or PRG.  In the beginning, your PRG acts as a guide, helping you set up a spending plan, look at cash flow, listing expenses, outlining how income & expenses relate to each other and identifying your financial goals.  When you are comfortable with your plan your PRG acts as a support system helping you keep the financial promises you’ve made to yourself and helping stay on track.

In Marjie’s first PRG group, a person on my team said ”You’re an artist.  I don’t know why you’re doing this (non-art job). You should correct your financial difficulties with your art”.  That simple question started a shift in my thinking.  Some of the best advice I ever received was from a fellow DA member, he said, “When looking for work, I get up in the morning & I promise myself 3 things I’m going to do that day.  Once those 3 things are done then I’m done.  First decide what your ideal job looks like; how many hours, what your space looks like, include the money you want to make. This can be done even if you are not clear about the field or any other specifics.

“As I worked with this approach”, Marjie said, “I began to realize that if I ask the universe for what I want it brings it – I just need to stop asking for what I don’t want.”  This will be the topic of our next blog series.  Manifesting what you DO want in your life.

Until then, feel free to call (303-726-1051) or shoot me an email with any questions you may have.

Wishing you ever expanding financial well-being,

Artists Can Be Chronic Under-Earners

Typically as artists we are either not valued by family, or maybe our parents were creative and we learned bad habits from them or we have the “them vs us” thing, or maybe we’ve never been around anyone who has paid for art so we don’t know how to price our work.  There are many contributing factors to the general result that often times as artists we are chronic under earners.
AND,
As artists our creativity isn’t limited to one avenue but rather that it expresses itself in all facets of our lives.  But when that creativity is applied to our money and finances it can sometimes get us into trouble.
Marjie A. recalls, “A speaker at a DA meeting once said ‘if I looked in my check book and I had checks then I believed I had money’.”  DA says don’t do unsecured debt like student loans or credit card debt – when you do you are betting against your own future.

“Being an honest straightforward person has really served me well.”  Marjie said, “And that means being honest with myself.”
A powerful tool within Debtors Anonymous is the Pressure Relief Group or PRG.  In the beginning, your PRG acts as a guide, helping you set up a spending plan, look at cash flow, listing expenses, outlining how income & expenses relate to each other and identifying your financial goals.  When you are comfortable with your plan your PRG acts as a support system helping you keep the financial promises you’ve made to yourself and helping stay on track.

In Marjie’s first PRG group, a person on my team said ”You’re an artist.  I don’t know why you’re doing this (non-art job). You should correct your financial difficulties with your art”.  That simple question started a shift in my thinking.  Some of the best advice I ever received was from a fellow DA member, he said, “When looking for work, I get up in the morning & I promise myself 3 things I’m going to do that day.  Once those 3 things are done then I’m done.  First decide what your ideal job looks like; how many hours, what your space looks like, include the money you want to make. This can be done even if you are not clear about the field or any other specifics.

“As I worked with this approach”, Marjie said, “I began to realize that if I ask the universe for what I want it brings it – I just need to stop asking for what I don’t want.”  This will be the topic of our next blog series.  Manifesting what you DO want in your life.  Until then, feel free to call (303-726-1051) or shoot me an email with any questions you may have.  
Wishing you ever expanding financial well-being,

Debtors Anonymous - Different Types of Debt

 If you missed the first installment, take a few minutes to take the quiz
15 Questions – Are You a Compulsive Debtor?
http://www.debtorsanonymous.org/help/questions.htm
TYPES OF DEBT
Unsecured Debt
An unsecured debt is money that you have borrowed that does not have any specific collateral attached to it. Credit cards are one example of an unsecured debt. A signature loan is another example. The bank or lender can sue you if you fail to make payments and garnish your wages as recourse on the loan.
Secured Debt
A secured debt is a debt that has collateral that stands for the money. A mortgage, a home equity line or a car loan are all examples of secured debt.
GOOD DEBT vs BAD DEBT
Good Debt
Some of your debt might be considered an investment. You’re probably thinking, “How can anything as bad as debt be considered an investment!”  If you took on the debt to purchase something that will increase in value and can contribute to your overall financial health, then it’s very possible that debt is a good one.
For example, a home purchase can be considered to be a good debt. Since homes usually appreciate in value, the mortgage loan you take out to pay for the home is an investment.  Another example of a good debt is a student loan taken out to finance a college education. Earning a college degree usually means that you’ll make more money over your lifetime.
Bad Debt
Just like there is good debt, there are some bad debts too. When you use debt to finance things that can be consumed. This is the kind of debt that creates an unhealthy financial situation. Credit card debt is often considered bad debt because of the nature of items that credit cards are used to purchase. You should never accumulate debt to purchase everyday items like clothes or food. If you use a credit card for these types of purchases, you should pay the balance in full each month.
Debt used to finance a vacation is bad debt. Even though it might help you feel better and be more productive once you return, a vacation does not appreciate in value.  Don’t use credit to pay for a vacation and especially don’t use it to pay for a vacation you can’t afford.
To learn more: http://www.debtorsanonymous.org/help/steps.htm

 

DA Topic 2 – How’d you do on the Quiz?

If you missed the first installment, take a few minutes to take the quiz

15 Questions – Are You a Compulsive Debtor?
http://www.debtorsanonymous.org/help/questions.htm


TYPES OF DEBT
Unsecured Debt
An unsecured debt is money that you have borrowed that does not have any specific collateral attached to it. Credit cards are one example of an unsecured debt. A signature loan is another example. The bank or lender can sue you if you fail to make payments and garnish your wages as recourse on the loan.

Secured Debt
A secured debt is a debt that has collateral that stands for the money. A mortgage, a home equity line or a car loan are all examples of secured debt.

GOOD DEBT vs BAD DEBT
Good Debt
Some of your debt might be considered an investment. You’re probably thinking, “How can anything as bad as debt be considered an investment!”  If you took on the debt to purchase something that will increase in value and can contribute to your overall financial health, then it’s very possible that debt is a good one.

For example, a home purchase can be considered to be a good debt. Since homes usually appreciate in value, the mortgage loan you take out to pay for the home is an investment.  Another example of a good debt is a student loan taken out to finance a college education. Earning a college degree usually means that you’ll make more money over your lifetime.

Bad Debt
Just like there is good debt, there are some bad debts too. When you use debt to finance things that can be consumed. This is the kind of debt that creates an unhealthy financial situation. Credit card debt is often considered bad debt because of the nature of items that credit cards are used to purchase. You should never accumulate debt to purchase everyday items like clothes or food. If you use a credit card for these types of purchases, you should pay the balance in full each month.

Debt used to finance a vacation is bad debt. Even though it might help you feel better and be more productive once you return, a vacation does not appreciate in value.  Don’t use credit to pay for a vacation and especially don’t use it to pay for a vacation you can’t afford.

To learn more: http://www.debtorsanonymous.org/help/steps.htm

Feel like debt is eating you alive?

Debtors Anonymous –
                              A Potential Path to Debt-Free Lifestyle?

Often times Marjie would walk after meetings with a fellow non-debtor and talk.  One such night he said,

 “These people are some of the brightest & most creative people I’ve ever met.  Far brighter & more creative than those who go to other 12-Step programs – then they come up with schemes like taking a minimum-wage job and believe this will solve their financial problems.  But there is a disconnect between the reality of their situations.  They are not lazy or indifferent… its part of their brain’s wiring.”

As Creatives, we are naturally very hard workers and optimistic at heart, sometimes in ways that do not best serve us.  Debt is a huge “ball and chain” hindering most of us.  Check out the national debt clock at www.usdebtclock.org/

In the spirit of INFORMATION IS POWER – I recently had the great pleasure of interviewing Marjie A.  A current Board member of Denver Art Students League, glass artist, sculptor, Custom Kitchen Designer and for six years, Chair of the National Board of Trustees of Debtors Anonymous.

What is DA?
The web site says, "Debtors Anonymous is a fellowship of men and women who share their experience, strength and hope with each other that they may solve their common problem and help others to recover from compulsive debting.”

Modeled after other 12-step programs  http://www.debtorsanonymous.org/help/steps.htm

John Henderson, the founder, grew up in Philly, moved to NYC, and ultimately became highly successful in the advertising biz, he’s largely recognized in the field for creating the term “lifestyle”.  He enjoyed all of the financial success that kind of career brings but he was having difficulty with money.  He was making good money but never seemed to have enough. So he set out to create what ultimately has become Debtors Anonymous.

Marjie believes (and I agree), “Our society is very schizoid about artists. On one hand, when you tell someone you’re an artist they’re excited but they immediately switch into an excuse, “Oh I can’t afford to buy…” or they go off about how their grandmother was a painter.  Or there are the organizations with missions “to assist Artists” and then expect the artists to donate their work for free to the raise money that they use to help the artists they serve.

Debt too often stands between the artist and our vision of prosperity.

So we’ve got a general public who claim to love art and artists but won’t/can’t/doesn’t buy art.  We’ve got organizations dedicated to support artists and then turn around and asks artists to donate their work to raise money.  And finally we’ve got artists and Creatives who believe in their own potential prosperity but don’t know how to make that vision of wealth a reality.

In this series we’ll be looking at Debtor’s Anonymous and some of the solutions DA offers.  We’ll explore potential remedies for compulsive spending, take a look at different types of debt and expose the crippling effects of a continuing attachment to the Starving Artist Archetype.

Want to know about your spending patterns?  Take this quiz!

15 Questions – Are You a Compulsive Debtor?
http://www.debtorsanonymous.org/help/questions.htm

Until next time - To learn more: http://www.debtorsanonymous.org/help/steps.htm