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Top 5 Savings Funds Actors Need to Have


April 11, 2023

We all know that having a savings account is an objectively good idea, but why? What is that money actually for?

In this article, you’ll learn about the top 5 savings funds every actor should have and how to set up these funds. But first, let’s discuss what “saving money” actually means and what it’s for.

Saving money is putting aside money for future you to spend.

Saving money is not meant to be locked away and never touched.

Saving money should be intentional and have purpose, not just done because it’s “responsible” and “the adult thing to do.”

Saving money is not just for emergencies, it’s for fun things too.

You are meant to spend your savings.

In order to spend your savings, you need to split your savings into multiple categories so you spend them with purpose. Splitting up your savings will allow you to avoid hoarding money and also prevent you from draining your entire account.

Here are the top 5 savings funds every actor should have:

1. Solution fund (emergency fund)
This is the category most people think of when it comes to saving money: the rainy day fund, the “just in case” money. There are lots of different names for it, the most popular being “emergency fund.” I like the name “solution fund” because it feels lighter and less scary, and it’s the money that can provide a solution for any problem that comes along. If your car breaks down unexpectedly, you have a medical bill come up, your dog needs surgery, “oh no they lost my luggage and I need to get a whole new audition outfit for UPTAs tomorrow,” this fund has you covered. It’s the safety net that can bring you peace when life throws a wrench in things.

2. Off-contract buffer
This fund is specifically for freelancers, artists, gig workers—an extra solution fund that 9-5 workers don’t need. Most financial gurus recommend an emergency fund with 3-6 months of living expenses in it in case of job loss. For artists, being “between jobs” is a way of life, it is inevitable, so we need a separate savings fund for it since it’s not an emergency. Having money set aside in an Off-Contract Buffer fund helps normalize this lifestyle in your brain and takes the pressure off of auditions. When you know you have money set aside to pay your bills for 4 months, you can audition with ease and you won’t feel the financial panic set in as a contract is coming to an end.

3. Actor Essentials
The life of an actor requires a lot of outside investments, things like coaching, headshots, audition attire, dues/memberships, etc. These are all things you can expect to spend money on throughout the year, so let’s prioritize and prepare for it with a savings fund. Calculate the yearly amount you spend on union dues, casting website memberships, your website and domain, as the cost of the two or three classes you desire to take at your favorite acting studio. If this year you’re in need of a headshot revamp, calculate that into the number as well. Because these are inevitable expenses, let’s take the stress out of paying for them by proactively setting money aside.

4. Taxes
The dreaded T-word. Just like Actor Essentials, taxes are inevitable, so let’s take the stress out of tax time by proactively planning for it. Most contract work is done on 1099s instead of W-2s, meaning taxes are not taken out for you. Every time you get paid via a 1099, all you have to do is take 25% of your earnings and put them into this savings fund (you can do this monthly or each time a paycheck hits your account). When tax time comes and your CPA emails you what you owe, you’ll already have the money sitting there ready to be used, no stress. And if you happened to oversave for taxes, now you have bonus money to put towards one of your other savings funds or use it to buy something indulgent for yourself.

5. Something fun (choose your own adventure!)
Savings shouldn’t just be about the things you HAVE to save money for, it should be for the things you WANT as well. This could be a bougie day at the spa, a cruise during the gloomy winter months, a framed print from your favorite artist on Instagram, an iPad just because, a trip to see your family, a pair of ridiculously bold heels for your next opening night party, anything you want. You want to train your brain and body to get excited about money, and that means making fun stuff a part of your money management routine. Your money is meant to be enjoyed, and this is a way to make sure that actually happens instead of staying stuck in the purgatory of “one day, maybe.”

Now that you know the top 5 savings funds actors need to have, let’s talk about how to actually set that up inside of your bank.

How to split your savings into multiple funds:

1. Open multiple accounts
The first option is to open up multiple savings accounts at your current bank (as long as there aren’t account minimums or monthly maintenance fees). You can re-name each of these accounts to the specific fund you’re using it for, so instead of it reading “Saving Account 3759” it can say “hot girl wardrobe makeover.”

2. Use buckets
The second option is to open a savings account at an online bank that has a bucket feature, where you can split your money into multiple funds or “buckets” inside of the same savings account (my favorite online bank with this feature is Ally Bank). With the bucket feature, you can title each bucket with its fund name, set goal numbers and timelines and even attach a picture to each bucket to symbolize what it’s for.

Physically splitting up your savings like this allows your brain to see what your savings are actually for. It also removes the guilt when you go to pay for your girls’ trip to Cancun knowing that you’re not taking it from your emergency money.

Savings are meant to be spent, and these 5 savings funds allow you to spend your savings with intention while also knowing that future you is taken care of.

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Brooke Tyler Benson, Money Coach + AEA Actor, is the founder of Not Starving Artists. She is bringing financial education and empowerment to creatives to create a new generation of wealthy artists living lives of luxury and purpose (no budgeting or bi-weekly paycheck required). After graduating with a BFA in Acting, it became her mission to destroy the “starving artist” trope once and for all. She is your financial cheerleader, bringing you accessible money education and coaching specifically for creative freelancers and small business owners.

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