When do you spend the money you've earned?

I see a lot of threads asking how much to charge and what not, but I can't remember seeing a thread about when to spend the money you've earned.

I know this is probably simple, but since I've been shooting more and more weddings at my new price bracket, I'm starting to bring in some serious cash.

While this is all good and great, I want to be smart about my spending and earnings. I'm just curious how quickly you other photographers spend the money you've made. In the past I've spent it or invested it within weeks of shooting the wedding (paying off CC's, gas, hotels, etc), but I'm wandering if it would be smarter to put the money in a bank account for a couple months and not touch it.


Am I over thinking this?

Pay off the CC's! No bank interest rate will offset the high CC interest.

Get CC free.. And then look into savings/investing

you should save up a contingency fund, and start saving some back for retirement etc. Otherwise spend it how you want to spend it.

This is more of an investing question rather than a photography question, but yes - pay off anything that bears interest. Pay your bills. Then invest - wisely with much study obviously, because times and investments are risky.

What I'm wanting to know mostly is do you spend the money right away? Guess I'm worried about a brides parents not being happy w/ the final result and wanting the deposit back or something.

Even though it hasn't happened, just worry ya know?

B.Miller wrote in post #10434300
What I'm wanting to know mostly is do you spend the money right away? Guess I'm worried about a brides parents not being happy w/ the final result and wanting the deposit back or something.

Even though it hasn't happened, just worry ya know?

If you are going to be in business, you should have a contingency fund saved up, about 3 times the cost of your average wedding. That way you have the ability to replace or repair gear on short notice, take advantage of sudden opportunities, and satisfy unexpected expenses. That would cover situations like you suggest.

gonzogolf wrote in post #10434320
If you are going to be in business, you should have a contingency fund saved up, about 3 times the cost of your average wedding. That way you have the ability to replace or repair gear on short notice, take advantage of sudden opportunities, and satisfy unexpected expenses. That would cover situations like you suggest.

So save a couple weddings up before I go and buy a new tv.

thanks!

Seems like such a simple question that takes common sense, but then you look at how many people in this country got in trouble not knowing how to handle money and it becomes not so simple.

I'm not a penny pincher in any sense, you have to spend it to make it, but every time you make it some should go away into a savings of some sort. All my income goes into my business account and I only buy things I need right away. Pay off ALL bills immediately if at all possible, always have money to pay them off for the next few months like suggested in having a fund saved up for it and unexpected bills - like say almost all your gear going down at the same time or your appendix bursts without health care.

You can't run a real business without money in the bank - it's why people get loans. The bill collection agencies, the tax man, insurance companies - all things you need to have/pay - do not like to wait for payments. Buying a TV should not even make a dent in your bank account once it's set up right and has money to play with, unless of course it's gold plated with diamond studded remote.

you should talk to an accountant about how to set this up properly.

Karl Johnston wrote in post #10435311
you should talk to an accountant about how to set this up properly.

Probably the best response in this thread. A good accountant can save you far more in time, money, and frustration than you pay them.

Karl Johnston wrote in post #10435311
you should talk to an accountant about how to set this up properly.

This first, maybe...or maybe second.

As soon as you can, join PPA and start taking advantage of the Studio Management Services. These people are accountants--who specialize in accounting for photography businesses. You can utililze SMS in several different ways, from attending seminars to personal paid consulting to simply handing them all your records and letting them do all your accounting.

They know how to determine where you're making money as a photographer, where you're losing money, where you as a photographer can cut costs and where you as a photographer should spend more money to make more money. They have the figures from the books of thousands of studios that they manage and consult for, and they know why studios make money and why they lose money.

I know a couple of photographers near me who were "instant" financial successes--because they started using SMS even before they hung out their shingles. A accountant is good...an accountant who has specialized experience with hundreds of photo studios is better.

I think this thread was taken the wrong way. It wasn't intended as an investment thread, more how long do you wait to spend the money you make.

Drozz119 wrote in post #10434238
Pay off the CC's! No bank interest rate will offset the high CC interest.

Get CC free.. And then look into savings/investing

Or don't ever use credit cards in the first place and you won't have to pay interest! I haven't paid a penny of intrest on anything i"ve bought for my photography business. My husband and I have done away with credit cards for good (accept for his job that he gets reimbursed for).

B.Miller wrote in post #10436863
I think this thread was taken the wrong way. It wasn't intended as an investment thread, more how long do you wait to spend the money you make.

just pay all your bills and payables, CC etc. what's left of the money just stash it away, even better if you could put it in some sort of short term low risk relatively high return investment, time deposits and what not...

if you do not need anything, then just don't spend it just because you have it. maybe you will need it next time.

SnapsbyPoteat wrote in post #10436900
Or don't ever use credit cards in the first place and you won't have to pay interest! I haven't paid a penny of intrest on anything i"ve bought for my photography business. My husband and I have done away with credit cards for good (accept for his job that he gets reimbursed for).

In our country, you won't be paying any interest if you are paying your CC's on time though.. so for that matter the OP should just save up so that he could pay his CC bills timely.