It's equally, if not more important to have a plan on what to do when you start generating $10,000, $100,000 even $1,000,000 contracts and royalty checks. We often don't discuss this, but it's extremely important as you may achieve your goals and realize your potential and find yourself making the money you've always hoped, prayed, wish, dreamed and worked for. A simple way to start preparing for later is to start doing now. For instance, save and invest 10%-25% of any money you earn in other businesses, real estate, equities (stock market), bonds, precious metals and other opportunities that seem to be sound based on your own research.
The music business can be elusive and fool you into thinking that when you start making money you'll continue making money as a music producer, recording artist, musician, music manager or songwriter, etc. Inside the Music Industry Connection Books there's a section that talks about Creating Wealth and in that section there are a list of terms and websites that you may use to further your own education, knowledge and overstanding on saving and investing. The best part is you don't have to wait until you become super-rich and famous. As stated above it's best to learn for yourself now and put your plan into action as this will great increase your chances for maintaining the lovely lifestyle you envision for yourself and love ones. Download the Music Industry Connection Books to learn about the music business and creating wealth right now.
Below is information how one of the hottest producers in 2004 who generated millions in royalties seems to have fallen from grace, because of not staying humble and mis-management of money. You decide.
ACCORDING TO THE ASSOCIATED PRESS--
In 2004, everyone wanted the Storch sound, and he reportedly commanded $100,000 per beat. An extensive Rolling Stone profile called him "hip-hop's Liberace" and said he had earned $70 million. Scott Storch was one of the top producers in pop music, living in a $10.5 million mansion on an exclusive Miami island, driving a phalanx of luxury cars and dating the likes of Paris Hilton and Lil Kim.
..Storch built his name on numbers as much as on skills. He may not have adapted to the changing economy and the downsized music industry.
"Costs have come down because it's an absolute necessity. We're certainly not able to spend beyond what our budgets are for making records," said Kallman. "If a producer's out of our price range, we've gotta move to another producer. There's always new people." The executive says Storch has not produced any recent Atlantic tracks but that they have "been talking."
Storch seems also not to have saved for a rainy day — a fatal mistake in pop music. "There's no 401k plan in the music industry," says Infamous. "You can't be stupid and just throw your money away."
Nowadays, Scott Storch, 34, is missing in action. He owes over $500,000 in real estate taxes and had a warrant out for his arrest... Click here to read the full story.
