Comedians make money off of making people laugh. However, when it comes to managing their finances they know it’s no laughing matter. Comedy as a profession is only lucrative if you hit it big. That means having your own ‘special’ - a whole show featuring your standup routine as the main act. It takes years to build up to this level of success. Luck in terms of timing and networking has a big role to play too. Until then, comedians have to be really smart about managing their money. In fact, there’s a lot we can learn from them about managing finances. Let’s dive right in and you’ll see what we mean.
A little something on the side
Ever heard of the phrase, ‘don’t quit your day job’? It’s usually used as an insult to someone in the creative field to tell them they aren’t good enough to be making money from their art alone. For comedians, however, it’s a good piece of advice. Most comedians pursue their comedy as a side hustle. They have regular 9-5 jobs during the day and perform at shows or open mics at night or over the weekends. Until they’re making enough to sustain themselves doing just comedy, they keep standup as a side venture. They work at growing their success over time till they can quit their ‘day jobs’. This way, they can hone their craft and still be able to put food on the table, avoiding the whole ‘starving artist’ trope. Their regular jobs allow them to be financially stable.
Lesson: Do what you love. But also do what you need to do to stay financially stable.
Living on a prayer...and their savings
A career in comedy can be unpredictable. As long as the gigs keep coming in, you’re flush with cash. But often, you won’t know how long it will be between pay cheques. Sometimes jokes click and you’re headlining every week. Other times, your regular material stops getting as many laughs as it used to, or new material isn’t accepted as well as you’d hoped – especially in today’s world of cancel-culture. This is why every financially smart comedian puts serious effort into building their savings. They will try to have anywhere from six months to a year’s worth of living expenses saved up if they’re pursuing comedy full time. Their savings act as a safety net, providing the financial stability comedy does not.
Lesson: Life, like comedy, can be unpredictable. Build your savings.
Growing their wealth along with their joke repertoire
As we’ve said above, comedy doesn’t always provide a stable income. Along with building their savings, comedians also try to grow their wealth. They may invest in different financial products like mutual funds, bonds, stocks and shares, etc. Many comedians also allow their investments to be dictated by the ‘famine and feast’ cycle – investing lump sums when they are earning well and cutting back when there’s a dip in the cash flow. This flexible approach allows them to grow their wealth whenever they can.
Lesson: Grow your wealth by making investments that are right for your specific situation. (We recommend speaking to a financial advisor to explore the correct investment options for you.)
Paying to perform and putting in the time
When you’re first starting out, you literally have to pay to perform. Comedy open mics are events where anyone who wants to try stand-up can perform. For most comedians, these events provide the perfect platform to test new jokes and material. It’s also a chance to watch other comedians perform, and scope the competition. These events are free for the audience. Sometimes, if a venue is still trying to get established, it may be free for the comedians too. Most times, especially if the venue is a popular pub, bar, or event space, then comedians have to pay to be included in the lineup. The fee may be nominal, about $5-10. Another type of indirect payment that comedians have to make is performing for free at events in return for exposure. They may have to open for a more successful comedian who would be the main act, or perform at small-scale events in the community. Every performance requires preparation, time, and effort, whether you’re getting paid for it or not. Performing at open mics and comedy events are crucial to gain exposure. After all, you never know who may be watching in the audience. As we’ve said, luck, timing, and networking can make or break a comedy career. The better known you are, the better chances of success. So, comedians fork out the dollar bills for their slot in open mics and perform at other events for free. It’s all an investment towards their future success. By paying to perform in the present, they are working towards being paid to perform in the future.
Lesson: Small steps towards your financial goals in the present can help you reap returns in the future.
Doing the grunt work and taking up unglamorous gigs
Not every gig includes getting selected to feature in a comedy festival or opening for a big act. Those are just the highlights until you become the big act. Till then, comedians will often take up any gig that comes their way. Most of the times these are shows at corporate retreats or as entertainment during conferences and seminars. As professional performers, good comedians are able to cater to any audience. As these types of gigs usually pay good money, it makes financial sense to take them on, even if they’re not the most exciting events. Financially smart comedians know that paying the bills is as important as playing to a glamorous audience.
Lesson: Meeting your financial goals should be a priority.
Using their skills for different kinds of comedy work
While delivery and stage presence are key factors, a comedian’s talent lies in their ability to come up with funny punch lines. Their quick wit and creativity does not have to be limited to creating their own material. Comedians often supplement their income from standup gigs by working as writers for shows. This could include coming up with jokes for a sitcom, or talk show, or even a sketch comedy show. These kind of shows require a high volume of relevant and funny content and employ teams of lesser-known comedians to write their jokes for them. It could also mean working in a team to provide base material for a more successful comedian, who will then add their own spin to the joke. If not as writers, many comedians also supplement their income by teaching at stand-up comedy workshops or improv classes at community or arts centres. All these kinds of jobs allow them to keep getting better at their craft and keep their bank balances healthy too, since they’re not putting all their eggs in one basket.
Lesson: Diversify your sources of income by discovering new avenues to use your unique skills.
Collaborating with other comedians to form a collective
Whether in life or comedy, there is power in numbers. Comedians will often band up with other comedians to form a collective. They may then perform together as a group, allowing for a range of different jokes and comedic styles. It also makes it easier for event organizers to book them as entertainment or for shows, since they can be sure to offer the audience variety. For the comedians, being part of a collective also eases the pressure of finding regular gigs since the entire group can leverage their network. It reduces the pressure to perform as they only have to be on stage for part of the gig as well. Comedy can be supremely competitive. As part of a group with shared goals, comedians can provide each other with moral support and form deep bonds as they are collaborating and not competing with each other. It also allows them to take more risks and let their creativity truly shine as they know the other members will have their back. Working with other comedians thus helps to reduce their financial load and financial stress. Credit unions like Innovation also work on the same principal. Every member contributes to the credit union and is able to seek financial support from the collective group of credit union members. This reduces their financial load and financial stress.
Lesson: Seek out support to reduce your financial stress – contact us, open a line of credit, or consolidate your debt. Remember, as an Innovation member, you are very much a part of our close-knit community, and we’re here for you whenever you need us.
They say a good joke is one that surprises you, and makes you see the world a little differently. Were you surprised at just how many great lessons one can learn by analyzing the ways comedians manage their finances? Do you see your own financial habits and behaviours differently? We sure hope so!