The ArtSmart Budget is a studio or work budget that tracks your production and operating costs. Many people think a budget is about expenses and monitoring spending. But with artists the problem is rarely overspending. A lot of my clients are constantly worried that the sky is falling, so they are cautious to a fault. 

A budget is about awareness. 

It contains data from the past and information about the present to help you predict the future. Budgets are enlightening—I use them immediately on starting work with a new client so they can see in stark relief what it costs to operate their studio every month and where they can tighten their belt. “Did you know you spent $400 on parking last month?” I’ll ask a client, before they fall out of their chair. 

Tackling your finances head on can save you pain, frustration, and hard-earned cash. There is power in budgets—as we shall see in the coming scenario, they can even help you make transformative decisions. As Willem De Kooning once said, “The trouble with being poor is that it takes up all your time.” A budget is a great way to claim back the hours.

Budgets can help with our ArtSmart Triangle goals, too. For example, support is about strategic alliances; you may need to increase your travel budget to meet with key curators at an art fair. By doing a budget you can scope how and when you’ll be able to buy a kiln or high-end printer, hire an administrative assistant, or get a bigger studio. You might even see that the money you've spent on a promotional Instagram account hasn’t garnered the exposure or support you had hoped. 

I encourage you to do a personal budget separately, taking in core expenses like rent/mortgage, groceries, utilities, childcare, student loan payments, and credit card payments and nonessential expenses like dining, gym, charitable contributions, personal care, savings— and pet care. You can do this easily using a spreadsheet program, or there’s a tab in the Cost+Benefit Matrix in the ArtSmart Toolkit (you’ll need a personal budget to use this tool when we get to it). 

Be ready to go through your bank and credit card statements from the last year, catching all monthly costs, like rent and car payments, and all annual costs, such as insurance and subscriptions. Look ahead, too—if you know your studio rent is going to go up next month, for example, include the increase.  

Putting time in at the start to get this right will pay  off in the future. You’ll end up with a financial snapshot that’ll hopefully prompt you to consider how you spend your money—which is ultimately about your ambitions and priorities. Revisit your ArtSmart Budget every month to see if you’re actually hitting it. Update it in response to reality and to reflect changes in your behavior.