June 16, 2022

A Creative's Guide To Financial Literacy 📚


One of the biggest reasons why creatives don’t succeed at becoming professionals (making a full-time living from their work) is that they lack knowledge on financial literacy: the ability to use knowledge and skills to manage their financial resources effectively for a lifetime of financial well-being.

Understanding the link between money management and creative fulfillment is important to building a sustainable creative career, and this article is here to help you do just that. Today, we will share financial tools that will help you build your own path.

This article is a start to a journey, a personal journey between you and your finances.

Yes, you can’t become a financial expert overnight, but understanding the basics is achievable.

With that said, there are the 4 major pillars of financial literacy you should keep in mind:

1. Budgeting

A budget is a summary of your income and expenses over a period of time. Unlike popular misconceptions, a budget is not a restriction. It is simply a tool to allow you to track your expenses in line with how much you are making to help you meet your financial goals.

We’ve discussed it in depth here. Read about it and thank us later 😉

2. Saving

Remember that famous quote from Warren Buffet,

“Do not save what is left after spending; Instead spend what is left after saving.”

Saving money on a low or inconsistent income may seem impossible. But it is not! Read here on how you can save money on any income level.

3. Investing

Most young people cringe at even the thought of investments as they assume they are meant for the wealthy, or for much older people who are further along in their careers. This could not be further from the truth.

If you’ve considered living your financial life responsibly, investing is the best way to grow your money. Here are ways you can learn more about the kind of investment you can get into.

4. Debt management

Forget all those quotes you hear about “mwanaume ni deni”. Debt can frustrate you, but you’re not alone. This doesn’t mean that you shouldn’t deal with it when you have to. Africa’s pocket breaks down in-depth how you can navigate debt.

With that in mind, these are the next steps you need to take to ensure you’re on the right track:

1. Have separate personal and business bank accounts

Having the same account for your business and your expenses is not only a gateway to overspending but it also doesn't give you the chance to track your expenses as you should.

Doing this makes bookkeeping easier for you and your business.

2. Start saving with Koa

After creating the two separate accounts, take your profit and quickly deposit it into your Koa account. Why? Not only will you see your money grow daily, you can also separate your funds into the different financial goals you have set for yourself.

Save for that rainy day, it’s unpredictable, especially with this economy.

3. Sign up for  great initiatives like Skika Afrika

Skika is a platform for African creatives that provides them with centralized business management and access to financial solutions.

With Skika, you will be able to connect with other creatives, find work, increase your visibility and upskill but you’ll also develop your career greatly.

We love to see it and support our African creatives! Cheers to Skika. 🥂

4. Track your finances.

Stay on top of your finances, don’t let your finances stay on top of you. How do you do that? Have a clear budget of your expenses and hold yourself accountable.

If it’s easier for you, we recommend using a bookkeeping software where you can indicate how and where you’re spending your money. Whether for your business or personal expenses.

Lastly, break down how much money you would need to support your lifestyle? That includes all of your bills, savings, spending, etc.

You will also need to break down how much money you spent from your personal bank account in the last two or three months, Then divide that number by two or three and that’s how much you spend. Now double that number sweetie; that’s how much your business needs to make each month to afford operating expenses, pay yourself, and have a little profit for growth.

Now, are you ready to grow financially? Yaaaasss! We’re rooting for you.