by Danica Favorite
If you’re going to take your writing seriously as a business, one of the things you need to consider is your writing budget. A writer’s income isn’t always steady, so if you don’t have a plan for your writing income, it’s easy for that money to get lost on other things. Oftentimes, a person’s plan for attending a conference is more about “I’ll see if I can afford it” rather than finding a way to afford it. Or, a person might dream of attending a conference, but doesn’t have a financial plan to get there. This isn’t limited to conferences. Writers need tools for their business, like a new computer or an e-reader. For some, buying research books is on the “someday” list. But what is the plan?
Financial wisdom tells us that in our personal finances as well as in our businesses, we need to have a budget. Yet many writers don’t. This is a huge mistake. If you don’t have a plan for your writing income and expenses, you aren’t going to end up where you someday hope to go. Just as with your household budget, you need to create a budget that will be the blueprint for your writing business and guide it to the future.
Some things to consider when writing your financial plan for your business:
• What are my regular expenses to budget for such as paper, ink, web hosting, online backup and Internet service?
• What conferences would I like to attend? How much will they cost? How much do I need to set aside each month to be able to go?
• Do I have an emergency fund for something going wrong, like a hard drive crash?
• How much will it cost to promote my book?
• Am I saving for future tools, like a new computer?
• How much will I spend on research materials?
Have you created a financial plan for your writing business? What have you budgeted for?
Danica Favorite works as an online moderator for a major publisher where she connects readers and writers with new fiction releases. Having spent time in the corporate world teaching tax law and preparing taxes, she much prefers fiction to numbers.