Balancing Finances & an Acting Career - Why you should start investing now. (Even if you have very little money.
By Jen Berry
Disclaimer: A Balancing Actress Collaborative and it’s affiliates are NOT financial advisors. Please do your own research or consult a professional.
My dear Balancing Actresses,
I’m writing you as the voice of the what I wish I knew and didn’t when I started my career. Oh how much further, and more stable it would have made the ride. But alas, I started late. But YOU my friends don’t have to. I want more than stability for you. I want wealth. I want you to be able to go out and do what you want and pursue this crazy career without the worry of money. I want you to have the unbridled freedom to share your gifts with the world and have the ability to create, do good and give back.
As an actress, you're used to the unpredictable nature of the entertainment industry—gigs can come and go, and paychecks are often inconsistent. In such an environment, it’s easy to focus solely on securing your next role, but what about securing your financial future? That’s where investing in the stock market comes in.
While the stock market might seem intimidating or like something only wealthy people do, the truth is that anyone can start investing, even with a small amount of money. Building a financial safety net through investments can help you weather the ups and downs of an acting career and provide long-term security. Here’s why actresses should consider starting to invest and how you can do it, even if you’re working with limited funds.
Why Actresses Should Start Investing
Create Financial Stability in an Unstable Industry Acting is notoriously inconsistent. You might land a big job one month and then go months or even years without steady income. Investing in the stock market can help create a financial cushion. By building a diversified portfolio, you can generate passive income, which helps cover your living expenses during those slow periods. Over time, your investments can grow and provide a layer of security that gives you more freedom to choose the roles you want instead of the ones you need.
Plan for the Future As an actress, your career may evolve or slow down as you get older. Whether you want to continue performing or shift into directing, producing, or another field, it’s important to plan for the future. Investing in the stock market helps you build wealth that can provide for you in the long run—whether that’s through retirement savings, buying a home, or starting a business down the line.
Take Control of Your Finances Investing allows you to take control of your financial future. It helps you build financial independence by giving you another way to grow your money beyond your acting paychecks. The earlier you start, the more time your investments have to grow through compound interest. By learning how to invest, you’re gaining skills that will help you manage your money more effectively throughout your career.
Make Your Money Work for You One of the most powerful things about investing is that it lets your money work for you. When you invest in stocks, bonds, or other assets, you’re putting your money into something that has the potential to grow. Instead of just sitting in a savings account earning very little interest, your money can earn returns through dividends, capital appreciation, or interest, growing steadily over time.
How to Start Investing as an Actress (Even with Little Money)
Start Small You don’t need thousands of dollars to begin investing. In fact, many investment platforms allow you to start with as little as $10 or $50. Look for investment apps or brokerage firms that offer low minimum deposits and fractional shares, which allow you to buy portions of a stock, so you can get started with small amounts.
Some popular apps for beginner investors include:
Fidelity (My Favorite)
Stash
Vanguard
These platforms often come with user-friendly interfaces and educational resources that can help you get familiar with investing without feeling overwhelmed.
Focus on Consistency, Not Big Investments Instead of waiting until you have a large sum of money to invest, focus on making small, consistent contributions. This approach is known as dollar-cost averaging—you’re investing a fixed amount regularly, regardless of how the market is performing. Over time, this strategy can help smooth out the ups and downs of the market and grow your portfolio.
For example, you could commit to investing $25 or $50 a month. This consistency will add up over time, and you’ll start to see the benefits as your investments grow.
Diversify Your Investments When you’re just starting out, one of the best ways to minimize risk is to diversify your investments. Instead of putting all your money into one stock, spread it across different types of assets, such as stocks, bonds, and exchange-traded funds (ETFs). ETFs are particularly useful for beginners because they allow you to invest in a basket of stocks, giving you exposure to multiple companies without having to pick individual stocks.
By diversifying, you’re reducing the risk of losing all your money if one investment doesn’t perform well. A diverse portfolio helps you balance risk and reward as you build your investments.
Focus on the Long-Term Investing isn’t a get-rich-quick scheme. It’s a long-term strategy that requires patience and discipline. The stock market will fluctuate, and you may experience ups and downs along the way. The key is to stay focused on your long-term goals and not get caught up in short-term market movements.
Historically, the stock market has provided strong returns over time. By holding onto your investments and continuing to contribute, you’ll give your money the best chance to grow over the years.
Educate Yourself Before diving into the world of investing, take some time to educate yourself. Read books, watch videos, or follow reputable financial blogs that cater to beginners. Some great resources for learning the basics of investing include:
"I Will Teach You to Be Rich" by Ramit Sethi
Investopedia.com
“Rich Dad, Poor Dad” by Robert T. Kiyosaki
“Financial Freedom” - Grant Sabatier
Understanding basic investment concepts like stocks, bonds, mutual funds, and diversification will help you make informed decisions.
Consider Retirement Accounts Even if retirement feels like a distant future, it’s never too early to start planning. If you have inconsistent income, consider opening an individual retirement account (IRA) or a Roth IRA. These accounts allow your investments to grow tax-free or tax-deferred, which can be a huge benefit over time. They’re also designed for people like you who may not have access to an employer-sponsored retirement plan.
Many online brokers offer IRAs with low fees and minimums, making it easy to start small and contribute when you can.
Stay Disciplined with Your Budget Since acting income can fluctuate, budgeting is essential when it comes to investing. Make sure you’re setting aside enough for your everyday expenses, emergency fund, and investments. It’s important to strike a balance so you can consistently contribute to your investment accounts without putting yourself in a financial bind.
Investing may not be the first thing on your mind as an actress, but starting early can make a big difference in your financial future. Even with a small income, you can build wealth over time by investing consistently, diversifying your portfolio, and taking a long-term approach. With the right tools and knowledge, you can create financial stability, allowing you to focus more on your craft and less on worrying about where your next paycheck is coming from.
