Bhagyashree Thakkar jots down ways for creators to navigate their finances this fiscal year end

Finance creator and CA Bhagyashree Thakkar lays down her guides to help content creators manage and handle their finances better with the fiscal year end.

Managing and knowing about how to deal with your finances might be the biggest turn off about being an adult. Although we love it when we see our salary credited, we don’t particularly enjoy the process of managing it. March- April happens to be a crazy time for everyone as it’s the end of a financial year. Everyone is out there meeting up with their CAs and getting their money in order as they prepare for a new year. And it's not very different for creators! That's why finance creator and CA Bhagyashree Thakkar talks to us about things that people should keep in mind while handling their finances.

Given that the financial year has just ended, it's important for creators too to navigate the landscape as they find themselves at a crucial juncture. It's a time to reflect, strategize, and plan for the year ahead, not just creatively but financially as well. And for the uninitiated, Bhagyashree's tips will really come in handy!

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Here’s what she had to share!

Making Money; diversifying income streams: The digital age has democratized content creation, offering ample avenues for creators to monetize their passion along with bringing changes in the lives of millions of people. The key lies in diversification. 

Platform diversification: Spread your presence across multiple platforms. While YouTube might be lucrative for ad revenue, platforms like Patreon or Ko-fi allow for direct support from your audience. Similarly, leveraging Instagram can open doors to brand collaborations and sponsored content.

Productization: Finance influencers can create either personalized products or create services in the form of courses. This also gives the audience a sense of connection with the influencer.

Tax planning: Understanding the tax implications of your income streams is paramount. Many creators overlook the necessity of setting aside a portion of their income for taxes, leading to stress at year-end. Consult with a tax advisor to understand your liabilities and explore deductions like home office expenses or equipment depreciation. Advance tax payments should be made timely to avoid interest burdens.

Saving money and financial prudence: Earning money is just one side of the coin; effective management of these earnings is equally crucial. As the saying goes – Money saved is money earned!

Affiliate marketing: Another monetization strategy for creators is providing reviews or recommendations. By linking to products or services, you can earn commissions on sales without the heavy lifting of creating a product.

Emergency fund: The unpredictable and irregular revenue stream underscores the importance of an emergency fund. The thumb rule is to have 6 months’ worth of expenses saved up. This fund acts as a buffer during not-so-great periods.

Investing: Your money should work for you even when you are not working. Rather than letting your earnings sit idle, consider investing a portion in mutual funds, stocks, or retirement accounts. Your money should earn more money.

Engaging with finance creators: No matter how much we grow online, the joy of connecting offline is unmatchable. Engaging with finance creators can provide valuable insights and strategies tailored to the unique needs of the creative community. Their content, ranging from investment tips for freelancers to tax hacks for digital nomads, can simplify financial planning and empower creators to take control of their financial destiny.

Looking ahead: The end of the financial year is not just a time for reflection but also for proactive planning. Setting clear financial goals, exploring new income streams, and committing to financial education can set the foundation for a prosperous year ahead. Remember, financial success as a creator is not just about making money; it's about making smart money moves.

As we start a new financial year, let's embrace the challenges and opportunities it brings. By diversifying income streams, practicing financial prudence, and leveraging the wealth of knowledge from finance creators, we can navigate the fiscal landscape with confidence and agility. 

Here's to a year of growth, creativity, and financial independence!