How to hedge your music career against investing
Hedging when it comes to finance simply means taking a position to offset any potential losses. Protecting your downside in relation to any area in your life can be a useful tool. Especially in an uncertain volatile industry like music. Hedging adds multiple benefits such as financial, emotional, and longevity. Here are the three key ways that you can use hedging for the betterment of your life.
Financially Secured
As you continue your music career and spend massive amounts of blood, sweat, and tears into becoming amazing at your craft. Hedging your finances into an investment account against your music career secures that your money will grow for you while your music takes time to make money. Putting all your money and resources into growing your music can be beneficial in some cases, but for the long term of your life it is advantageous for you to invest your money along side your music career. The reason being that your investment account will grow money for you over your life and your music is not that certain. When you mix risk and certainty in your life you increase your chances of success.
Peace Of Mind
As you invest your money and you see the results, this brings peace of mind. You know that you are making money while your music still isn't there yet. The financial pressures that you have been putting on yourself go away when you see that your finances are taken care of. This will provide a boost in your creativity because you are no longer spending your energy thinking about your financial hardships and lack there of it. Financial security brings peace of mind that you are all set to focus on the thing you love to do.
Longevity
The account you invest in provides longevity to grow with your consistent contributions. You take care of your future self by acting today. A big thing with investing is the compounding effect it has. The longer your money is invested the more it compounds. An example can be that you invested $1,000 into your MariNation investment account. Say you receive a 10% return that equals $100. This $100 is reinvested back into your account. The next time you receive 10% it will be $110 invested. 10% of $100 is $10. $10 + $100 = $110. This is the beauty of compounding. It grows on top of itself and adds up after months and years into large results providing you with longevity.
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