3 Common Money Myths Debunked for Actors

With all the financial jargon out there, all the differing opinions, and so much focus on budgeting and bi-weekly paychecks, money can feel like an enigma for actors.

But in reality, money doesn’t have to feel like a mystical thing you’ll never be able to understand or be in control of. There are lots of money myths circulating that reinforce the narrative that “money is hard” for actors, and I’m going to debunk the three most common ones.

Here are three of the most common money myths that actors may have: where they came from, why they’re false, and what’s actually true.

What You’ll Find in This Article

Myth: Being Good With Money Means Sticking to a Traditional Budget

Myth: Retirement Accounts Are for People With 9-to-5s

Myth: Paying Fees to the Bank is Unavoidable

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Myth: Being Good With Money Means Sticking to a Traditional Budget

Traditional budgets were created for regular paychecks. These budgets require you to know exactly how much you’re going to make month after month, and to allocate a percentage of that amount evenly between all of your needs.

This kind of budgeting not only doesn’t work for an actor’s income fluctuation, but it also doesn’t jive well with a creative brain. Spreadsheets and rigid structures to adhere to? No, thank you. I’ve got art to make.

If you haven’t been able to make budgeting work for you, that doesn’t mean you’re bad at money. It simply means you lack the right money management system. You need a system built for artists.

Instead of trying to retroactively budget your fluctuating income, you can create a cash flow system like the one outlined here: 4 Steps to Creating a Money Plan With Fluctuating Income.

A cash flow system like this will help you identify your consistent spending range (consistent doesn’t have to mean “as little as possible”), automate your bills, and use your high-income months to buffer your low-income months.

It also allows you to remove yourself from a rigid structure of tracking and having to manage your money every day. It can give you more breathing room to do your art while your money is managed for you in the background. Managing your money can actually feel simple and easy.

Takeaway: You don’t need budgets and spreadsheets to be good with money; you can manage it like a creative.

Myth: Retirement Accounts are for People With 9-to-5s

Retirement accounts used to be just for people with 9-to-5 jobs (this was during a time when the only kind of job you could have was a 9-to-5). Employers used to offer all their employees pension plans, meaning they would pay for the employee’s retirement in full.

Now, employers have mostly gotten rid of pension plans, putting the responsibility of retirement on the individual employees. 9-to-5 workers now contribute to their own retirement accounts (a 401(k), 403b, etc.).

But there were always other ways to contribute to a retirement plan outside of a 9-to-5; it’s just that the most common way was through a pension or 401(k).

The retirement accounts available to freelancers and self-employed artists are an IRA (traditional or Roth), a solo 401(k), a SEP IRA, and a SIMPLE IRA. There are numerous options available to people beyond the traditional 9-to-5 employee-sponsored retirement plan structure.

The most commonly used and easiest to open is a Roth IRA. You can open one of these at any time (as long as you have some sort of earned income), and you can contribute up to $6,500 a year! If you invest that maximum amount for 30 years, your money will grow to over $1 million.

And even if you only contribute $20 a month, your money will still earn $38,000 on top of what you’ve contributed—no amount is too small when it comes to investing.

You also don’t have to be consistent with contributing to retirement (contrary to other money advice you may see out there). For example, during the strikes happening right now, it may feel hard to find extra cash to put toward your 60-year-old self—that’s okay! When you have seasons of higher income down the road, you can contribute then, and when leaner months come, it’s okay to pull back.

And if you can’t think about a retirement account right now, that’s okay, too. You are not behind, and a retirement account will be there for you when you are ready.

Takeaway: Retirement accounts, investing, and wealth-building are available to actors outside of the 9-to-5 structure.

Myth: Paying Fees to the Bank is Unavoidable

Paying fees to a bank is anything but normal. Let’s talk about what banks are and how they work.

When you deposit money into a bank, it doesn’t just sit there in a safe waiting for you to come get it. They take your money (and everyone else’s) and use a large portion of it to give out loans or invest in other money-making vehicles. They are using your money to make more money.

They are not doing you a favor by holding your money. You are doing them a favor by letting them hold onto your money while they go earn money from it. They should actually be paying you.

And some banks are.

There are online banks like Ally and Marcus by Goldman Sachs that will pay you over 4% interest on the money you have in a savings account with them. They also don’t charge fees like account minimums, overdraft fees, monthly maintenance fees, etc.

Getting hit with a $35 overdraft fee after an auto-payment went through that you forgot about never feels good. And getting charged a $12 monthly maintenance fee after moving money to savings and dipping below your account minimum doesn’t seem fair.

It’s important to know that there are banking options out there where you will never have to worry about these fees, and you’re actually excited to log into your bank account because you’ll never be hit with an unexpected fee.

Takeaway: If your bank is charging you fees, switch. There are numerous other options that not only cost nothing but also pay you to keep your money there.

If you’re an actor, money doesn’t have to feel like an enigma. With these three common money myths for actors debunked, you can now start your retirement account, manage your money without a budget, and start earning money from your bank.

Final Takeaways

Money doesn’t have to be confusing or stressful for actors — especially when you understand the myths that hold you back.

Instead of trying to force traditional financial advice onto your unique, fluctuating income and creative lifestyle, embrace strategies tailored for you. Here are some simple, practical steps to take control of your money while keeping your focus on your craft.

Create a flexible cash flow system instead of a rigid budget to manage your irregular income and automate bills.

Open a retirement account like a Roth IRA, even with small or irregular contributions. You can start anytime and build wealth over time.

Don’t accept bank fees as inevitable; switch to online banks that pay interest and charge no hidden fees.

Use your high-income months to buffer the leaner ones, giving you financial breathing room and peace of mind.

Remember, managing money creatively means finding systems that work for you, not against your art.