Having a considerable amount of video work coming up in the next two months has made me change the way I look at money. The truth is, I am not a considerably wealthy person. I was a university student for two years of my life who operated a home studio out of his basement; both of which don’t really make any money…
Saving vs. Investing
Whether it’s buying a new tripod head, upgrading a camera, or maybe buying some new on location audio equipment, these things start to cost a lot once you reach the “prosumer” grade. However, my mentor brought up a great point; you’ll pay it off within the month. This is what makes saving vs. investing radically different.
After paying it off within the month, I’ll have a higher quality portfolio filled with content my old gear couldn’t achieve, along with a nice arsenal of professional equipment… and only a month went by! Sometimes we could be saving, and saving, and saving for months, or years until we finally take the plunge. Yet, if we would have taken a loan, or started to bootstrap equipment better, you could be miles ahead.
Not Everything Is An Investment
Of course, not every thing involving your profession could be considered an investment, and you have to be careful with that. “I just need a new MacBook Pro for programming”. No you don’t. “But I want to use Xcode”. Well… buy a Mac Mini then, and save yourself the money. Don’t use this as an excuse to get the latest and greatest. Those are peripheral things. Instead, bring yourself back to the goal; how I can start contributing more professionally to a certain field, as soon as possible.
What Should I Invest In
Saving is a great tool and discipline, but the truth is that it’s only half the story. Every dollar saved somewhere, should have a future purpose for being spent elsewhere. Money is only a means to accomplish an end, and the key is to make sure you remember what your real goal is; upgrading your education, buying new gear, saving for a house etc. When all you do is focus on the numbers, your creativity stagnates, and the fear of whether you have enough money will start take over. That kind of fear keeps you working a job for 30 years that you never really liked, just to let you take home a decent pay cheque, instead of fearing whether you’ll work a job that you actually like, for the next 30 years.
If you want to know what you should invest in, ask yourself what you would do if money wasn’t an issue. Would you be working the same job, or getting the same degree? Figure out what it is, and how your money, time and energy can be better used for the accomplishment of that purpose.
Check out this Ted Talk. It speaks towards overcoming fear, and doing what you’re passionate about.