In early May, members of the Recording Academy’s Black Music Collective and New York Chapter gathered at the Chapter's Midtown townhouse for an evening full of connection, big dreams and financial empowerment. Presented by City National Bank, the Rhythm & Wealth event fostered community while arming Black creatives with the knowledge needed to build lasting wealth.
Rhythm & Wealth kicked off with, fittingly, music to move to. The varied playlist included cuts from Stevie Wonder, SZA and DJ Jazzy Jeff & the Fresh Prince, while spoken word artist JRose wrapped up the event with a moving performance. The poet, author and teaching artist (who’s also a Recording Academy voting member) began her performance with a series of powerful affirmations: "I am worthy of health. I am worthy of wealth. I love myself. I trust myself. I am enough. And when s— gets rough, I’m still enough."
The evening centered on a fireside chat between Dr. Chelsey Green, a recording artist and Chair of the Recording Academy’s Board of Trustees, and BMC Co-Chair, and Nicholas Kong, VP and Wealth Advisor for Entertainment Banking at City National Bank. Their discussion was laced with humor and relatable examples, allowing Kong's advice to resonate deeply with the Rhythm & Wealth audience.
Kong shared practical tips for developing financial literacy and, yes, wealth, and offered words of encouragement to singers, songwriters, producers, engineers, and more, who aim to bridge the gap between creativity and financial literacy. Read on for some of his most salient points.
Earmark Money For Taxes
Owing taxes on earnings is a given, and something you typically don’t have to think about as a 9-to-5 employee. But if taxes aren't taken out of your paycheck by your employer — which is often the case with freelancers and contractors in creative fields, planning ahead is crucial. "You need to [set aside] money out for taxes," Kong advised. "On top of that, you have to have good expense control."
Stay Involved In The Process
Many creatives would rather focus on their art instead of the business side of the music industry, which can seem daunting. Hiring a business manager is a smart move, but familiarizing yourself with the basics goes a long way and makes you a greater asset as an artist.
"Artists have to understand that ultimately, nobody is going to be more invested in your career and your finances than yourself. And while you might not need to be an expert, you need to know enough to be dangerous," Kong stressed. "You want to be aware of what's happening with your money. Otherwise, chances are you'll spend it or someone else will."
Plan For The Future
Even if you've manifested your goals and achieved success, it's important to keep the future in mind. That can mean making sometimes-difficult decisions about financial priorities.
"Is [the goal] to be fly today, or is it to be wealthy long term? Even if you were to win the lottery that doesn't guarantee generational wealth," Kong warned. "We've all seen cautionary tales of people coming into money and people getting big contracts and then winding up broke. You can't overstate the importance of budgeting… You'll never be wealthy if you're spending more than you're making consistently."
Read more: Tips For Financial Literacy In Music From The Black Women's Brilliance Brunch
Make Your Money Less Accessible
In his 2011 comedy special "Laugh at My Pain," Kevin Hart joked that he has a checking and savings account but all the money’s in his savings account. Turns out, Hart’s bit is great financial advice.
"When you put that money aside, you want to put it somewhere where it's not easily accessible. As you do that, you'll realize that money starts to accumulate," Kong explained. "You’re starting to build up that emergency fund. Typically, we recommend [a safety net of] six months, but people that are artists with inconsistent income streams we recommend 12 to 18 months."
Understand That Money Isn't The Only Capital
Nearly two-thirds of Black households donate to organizations and causes. However, when you’re truly a grassroots artist, who’s responsible for booking hotel rooms, buying and replacing equipment, and feeding the crew, it may seem like you don’t have room in the budget to give back.
"It doesn't have to be, I'm giving so-and-so $10,000 of a donation," Kong said. "Partnerships and collaboration can be very important … You're getting a chance to expand your reach and expand your network, and they are too. And it's a way to foster that growth in that community by investing your time and your partnership in that community."
Face Your Mistakes & Learn From Them
Whether you’ve racked up thousands in credit card debt or are renting when ownership was actually the better choice, it’s never too late to correct a mistake. And it’s crucial to understand that one’s mistakes don’t define the present or the future when it comes to building wealth.
"We've all made mistakes," Kong noted. "What are you doing to correct those mistakes? What are you doing to set yourself on the right path? The first thing I would do is look at all my accounts [to] understand what my assets are currently." Kong recommends creating an expense tracking spreadsheet and updating it regularly as a way to hold yourself accountable.
Use AI Tools To Your Advantage
While some aspects of AI pose a threat to the livelihoods of musicians, there are small ways to lean into it without compromising one’s artistic integrity. "ChatGPT and all of the AI resources out there can help you build your budget," Kong said. "You can ask them to build a budget for you and you can give it follow-up queries to have it tweak that budget to something you like."