Posts Tagged ‘finances’

at the end of the tunnel

Monday, February 14th, 2011

During the Passover Seder participants relate the liberation of Jews from Egypt to their own lives. The word for Egypt is Mitzrayyim. While used to refer to the Egypt of Jewish enslavement, Mitzrayyim translates into English as “a narrow or tight place.” During the Seder you examine your life and your own Mitzrayyim and how you have been liberated.

Over the past few weeks we have repeatedly heard the phrase “witness to history” with regards to events in present day Egypt. Since January 25th the common people gathered in Tahrir Square, itself a literal narrow place, in protest of their totalitarian government. This weekend they were delivered from that modern day Pharaoh. How appropriate then that Tahrir translated into English means “Liberation.”

The value of spirituality lies in the ability of metaphor to shed a light on aspects of our lives which are lacking or perhaps, more importantly, on aspects of our life where we lack gratitude. Far and away the situation of most Jews on the planet today is so far removed from the situation dealt with in Exodus as to bear a kinship in name alone. Yet even sixty years ago things did not look so good.

Times change.

The darkness of a tunnel can be foreboding when looking to the side at the imprisoning walls or backwards at the evidence of a long journey. Yet like that narrow place in Egypt it is only temporary. Up ahead shines a light. Outside the tunnel it is a clear and beautiful day.

In 2008 I watched as project after project I had been asked to light lost its funding and either cancelled entirely or reduced from an Off-Broadway to a Showcase contract. Projects fell apart and companies cut seasons. It was not a fun period. By the end of the year I felt brutalized by the economics of theater. Not one year before I was riding high on a fully booked schedule that had me darting back and forth across the country and across the Atlantic. I had no idea what was to come next.

At the end of 2008 I made a rather rash decision. The pretext I used was one of optimism, but the real cause was far from that. My career, it appeared from where I stood, had fallen apart. Time to put down the cards, round up the remaining chips, and go home. There was an air of defeat that I felt which was honestly a quite novel experience for me. Or at least it had been so long it felt new.

Needless to say, the proximate cause of my return to California dissolved in a blaze of glory in rather short order. Add to that a continuing downward trend in the economics of art and things looked bleak. Companies were scaling back on travel expenses. What had made my first year on the West Coast financially viable, the fact that I was for all intents and purposes not working on the West Coast, was now gone. 2010 was going to be rough.

2010, much to my surprise, was far more interesting than I would have first expected.

My friend Mark took over as Artistic Director of a small opera company in the area. We had met a few years before when I was the lighting assistant at SF Opera and he was an assistant director. We had done one show together since that time. As he took over the company he asked if I would light their season. The company was traveling through its own narrow place when Mark took over. The budgets were tightened to the breaking point and they had just lost their long time venue.

Mark found a new venue, twice the size of their last one, and took the reigns of the company directing a new production of Don Giovanni. The show was a hit selling out its brief run and, as if rounding that last corner in a dark tunnel, light began to shine in. I lit three more shows for Mark’s company that year.

The end of the year brought another interesting collaboration. Director Jon Tracy, who had seen my work several times through projects I had done with his fiancee, asked me to light his newest work. The sequel to his, then running, outdoor adaptation of The Iliad. This would be the second chapter, The Odyssey. It was a phenomenal project both on purely artistic merits and for the quality of the collaboration. Of The Earth finished out the year to raving critical success.

While not the best year by economic standards it was quite satisfying creatively.

Finding myself in a bit of a narrow place financially, my deliverance came through creativity. What saved me was, quite literally, the light at the end of the tunnel. A 2K Fresnel perhaps, gelled in L201.

While the financial trials of an American pale next to the struggles of the oppressed to speak freely, they are for each a Mitzrayyim. We can only observe our fellow humans in their tunnels lost in the darkness. It up to each of us, as individuals, to turn our heads away from the past and look up.

From the Archives: Freelance Finances

Friday, September 11th, 2009

Note:This post is originally from July of 2008. While my system has been modified somewhat since then, the basic structure and ideas are the same.

I left the piece unedited from the 2008 version, but upon a new read am aware how much my writing has improved over the past year.

Enjoy!

Of all the classes I took in gradschool not one of them focused on how how to organize your finances. We had a CPA come in one day and talk about taxes, but nothing on day to day cash flow management. It is surprising since that is rather central to freelancing. And given that this is what a large percentage of their students end up doing, it surprises me there was no discussion of it. I had to make this system up on my own, via some help from talking with friends and colleagues. My system will not work for everyone, it may only work for me, but perhaps some of the ideas will be useful to others about to begin the freelance design experience.

One of the trickiest things I have found freelancing is budgeting my money. The switch from regular to irregular income can be quite a shock to the system if not prepared. It has taken me a number of years to get the system I have working with most major kinks ironed out, but it seems to be doing well currently. Since some months I will be working constantly with a fairly high and regular cash flow and other months are like a river evaporating in the desert I have adopted a system that works no matter what volume my monetary intake is at. Most of it is based on percentages and that allows my budget to expand and contract as the intake does.

Obviously I have fixed expenses like rent, gas, electricity, phone, student loan payments and internet. Thus there is a minimum I must make each month to not go into debt. By and large making those minimums is simple. Everyone has these expenses. They are obvious. There are a few other less obvious expenses that stung me a few times through my not considering them necessary.

For the system to work, taxes, savings and a “dry month buffer” should all be considered necessary expenses. By looking at these as necessary expenses I make sure I have them covered rather than waiting until the end of the month or end of the year only to find out I spent all my income.

Since I do not get W2′s there is no income withholding which means I must do that on my own. I am also under no illusion that I will “strike it rich” as a theatrical designer, so I have an IRA that I feed regularly. Both the taxes and the IRA follow the same model. As soon as I deposit each check for a project I take a percentage(currently ten percent) of that and put it towards my IRA(and to a savings account for taxes). So if I get a hundred dollar check that’s $10 to my IRA. A $3,000 dollar check and its $300. Simple.

The “dry month buffer” is less precise. Rather than a strict percentage I simply try and maintain about 1-2 months worth of necessary expenses in my savings account. This has been the most recent addition to my system and probably the one most needing of refinement. My next major tweak to the system is to make this more precise and methodical.

By doing all this before I even look at balances for necessary spending I have been able to save a decent amount of money on what can, at times, be a very meager income. There are two things that make this successful. One is knowing that almost anyone can adjust -10% of their income. It’s just enough to notice, but not significant enough to truly impact daily life.

One further trick I picked up from a friend of mine who uses a similar system has to do with money for taxes. In March he takes all his savings for taxes and puts it in a 9 month CD. In June does the same in a 6 month CD. And again in September with a 3 month.

It looks like an online savings account actually provides a higher rate of return than a short term CD. So this afternoon I will be opening an online savings account to hold my tax money until the end of the year.

The final element to the percentage system is discretionary spending. I give myself a monthly allowance, alternately called a flexible budget or spending plan, for excess income every month. By again treating it as a percentage of income I am able to allow it to expend and contract based upon earnings. And since all my credit card spending is accounted for in that spending plan I am able to pay off credit card bills at the end of the month(or weekly when I am really on top of things) to prevent that from getting out of control.

This all may fall into the over sharing category for some. But to me I would have loved to have this information at my disposal when I started working regularly on 1099 income. I hope this might help you out.

Busy Day

Sunday, January 7th, 2007

I spent the first half of the day working on my finances. I use a spreadsheet to track all my income, expenses etc. Because I work freelance on an exclusively 1099 basis, my income fluctuates from month to month. As a result, budgeting can be quite a tricky thing. Until now, I have not actually budgeted my money. I simply paid my bills as they came and trusted it would all work out in the end.

I have been lucky so far.

Today I figured out a system that would calculate my budget based upon a percentage of my monthly income. It accounts for regular known expenses like rent and metrocard, and then calculates other items like dining out as a percentage of the monthly income. It is very complicated. Lots of math. I have not used my math so much in quite a while. It actually makes my brain hurt a little. Not the math part so much as all the cross-referencing between various sheets that have to delineate between income and business expenses and personal expenses and mixed expenses. Oy vey!

A Picture Share!

The second half of the day was spent working out for myself matters of aesthetics. I have been in a very introspective mood recently and have felt more of a need to reflect on my own thoughts and actions than to pontificate in public.

It is really difficult to narrow that stuff down. I have written extensively in this space about various matters of aesthetics and so on. I have gotten into numerous discussions about the meaning of this and that. Yet somewhere amidst all the words I got lost. It became talking about talking about talking.

And so, I picked up a copy of Dante’s Divine Commedy. I vaguely remember reading The Inferno in high school, but any real details were lost to me. I never did read Pergatorio or Paradiso. I am currently five Canto‘s into Purgatory. It is quite a trip! Very good reading to accompany an aesthetic introspection.

Midway along the journey of our life
I woke to find myself in a dark wood,
for I had wandered off from the straight path.

How hard it is to tell what it was like,
this wood of wilderness, savage and stubborn
(the thought of it brings back all my old fears),

a bitter place! Death could scarce be bitterer.
But if I would show the good that came of it
I must talk about things other than good.

A Picture Share!


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