Not Everyone Earns Like U2. What Should You Do?

Forbes ranked U2 as the 4th highest paid musicians in 2012, pulling in $78 million on the tail end of the group’s record-breaking 360 tour. Their total gross earnings for 3 years? – $736 million.

But not every musician or band can earn as much as what U2 does. As what my previous post revealed, a lot are even playing unpaid. I personally believe that even heroes should be paid. Remember Parokya ni Edgar’s “Mang Jose“? 😛

A lot of people, including musicians find dealing with finances a very daunting task. But in reality, when you learn the basic approaches to managing your personal finances, you will find the tasks a lot easier than you thought.

Here are some of the most important finance concepts that every musician should know.

Things Musicians and Artists Should Know

1) Inflation – What you can buy for only Php100 today may be bought for Php1,000 next year. Remember how much a McSpaghetti meal costs in the 90’s? It was Php29 only. With just Php100 you can already buy 3 McSpaghetti meals. But fast forward today, a McSpaghetti meal costs around Php50. Which means you can buy only 2 meals now with your Php100. That’s how you lost the value of your money because of time. That’s because of inflation.

So choose between spending your money now or saving/investing your money and spend it later. But if I were you, I will start to learn how to make my money grow and become an investing musician as early as now.

2) Compound Interest – When people hear about Albert Einstein, all they know is the formula, E=mc2.

But there’s another formula Enstein discovered to make us happier: Pn = P0 (1+r)n

Pn = Future Value
P0 = Present Value or Principal
r = interest rate (per year),
n = time (in years) which means compounding periods

Okay, that’s nosebleed for yah.

Here’s the bottomline: When you invest at least one thousand pesos in stocks or other types of funds every month, your money will continue to grow and will reach millions in 30 years or so. But when you keep on using your credit cards or loaned money without paying on due date, your thousand peso debts will grow thousands more in time.

“Compound interest is the greatest mathematical discovery of all time.” – Albert Einstein

3) “It’s Not How Much You Earn, It’s How Much You Keep And Grow”

Planning and budgeting are very important concepts to know when managing your personal finances. As most financial planners and frugal people say, “live within your means.”

U2 360 at Cowboys Stadium

You’re not Bono. Your band is not U2. And even if you start to make trucks of money that does not mean you will forever become successful in your finances. Did you hear about stories of famous musicians going bankrupt? (See the list of musicians gone broke from CNBC here)

It’s not because they were not able to make money anymore. They earned tons of money before, in fact thousands and millions. But they thought their money will never run out and continued spending more than they were earning. Most of them ended up declaring bankruptcy or grew old without homes to live in.

Do you know how to get financially ahead of the rest?

Then learn how to live within your means by keeping at least 30% of your talent fees. Remember you don’t receive the same fees all the time so follow that 70-30 rule in your budgeting. This 30% savings for investing later on will give you enough financial cushion to keep you running when the worst day comes.

If you can make your singing and playing instruments as your daily habit, you can surely learn how to take care of your personal finances through constant practice and continuous learning.

Start saving now, learn how to invest, spend wisely and always live within your means.

Make these your daily financial habit and you will never end up like them.

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Rock your way to abundance!


P.S. 1. Are you an OFW who’s been looking for a investment placement where your money could grow higher than your time deposit accounts? Are you outside of Metro Manila and would like to start investing in mutual funds but have no personal advisors to help you out? Click here so I can help you open a mutual fund account NOW! .

P.S. 2. Bro. Bo Sanchez has appointed me as a coach for our young and new investors at the TrulyRichClub social site. It’s a fun, learning family with the purpose of “helping good people become rich”. I’m inviting you to join the TrulyRichClub too and email me at if you have any questions. Click here to join!

P.S. 3. My co-author/illustrator Des Feliciano and I have just launched our “The Adventures of Pepot Kuripot and Dora Gastadora” comic book! It’s arguably the first and only personal finance-influenced comic book in the Philippines. Order your copy now from our website and have it delivered right at your doorstep. Or you can grab your copy yourself at The Pantry at 07 in Makati City and ilovemilktea in Las Pinas City. Now available also in Australia, Saudi Arabia, and the USA! Email for more details.

P.S. 4. If you are based abroad or just outside of Metro Manila and has been itching to learn more on how to jumpstart your business dreams, join me and my friend, serial entrepreneur Ginger Arboleda, as we take you through a series 2-hour webinars (for 11 Saturdays) that will help you focus on the technical skills and specific things that you have always wanted to know about in order to grow your business. We have come up with 10 sessions with 11 expert lecturers (with 1 FREE session if you enroll in the full program) that will make you a stronger and better entrepreneur. Register here to join the Enter Entrepreneurship Webinar Program now!

P.S. 5. Learn How To Make Money From Foreclosed Properties! We are on our 3rd run of the Usapang Foreclosed Property Investing with Jay Castillo of! Happening on September 26, 2015 at the SMX Aura, Bonifacio Global City. Click here to register and avail the early bird promo!

P.S. 2. Learn How To Earn Through Larry Gamboa’s Real Estate System. Real Estate Mentor Larry Gamboa is giving a Seminar on February 9, 2013 on how he buys foreclosed properties or properties from “motivated sellers” and turn them around into rental properties or quick sales. If you’re interested to learn his system, click here now!

Photo credit: Jack Newton