Mega digital influencers like Kylie Jenner and Cristiano Ronaldo can make seven figures from a single post. While this is an unfathomable amount of money for many of us, the fact of the matter is that digital influencers are riding the crest of a wave right now and therefore, need a financial planning.
In fact, brands big and small are investing more money each year into their digital marketing strategies, and working with influencers is one of their primary objectives. After all, digital influencers like you can nurture relationships with their social media audiences, which is a marketing strategy that so many companies are hoping to exploit.
As a result, digital influencers are well paid. Research shows that digital influencers average anywhere between $1,420 and $15,536 per month from paid posts alone, highlighting the huge growth opportunities within the industry. So, if you find yourself earning a significant amount of money from your work as a digital influencer, here are some financial planning tips that you can’t afford to ignore.
Financial Planning: Begin with a budget
All good financial plans start with a budget. What this means is that you need to know exactly how much money you earn and spend each month. Budgeting is so important because it allows you to factor in your financial goals and objectives while planning for the short, medium, and long term.
As well as the obvious figures relating to income and expenditure, you should include a range of savings goals within your budget. Consider compartmentalizing your standard savings, emergency savings, investments, and pension contributions. After all, there are lots of different ways to save money.
The reason that savings are a crucial part of your financial planning is that your income as a digital influencer is likely to vary from month to month. You will have some great spells, while other times of the year might be a little slower. Budgeting and saving accordingly will enable you to live the lifestyle you choose without worrying a great deal about your finances.
Financial Planning: Know your worth
Whether you’re a micro or macro digital influencer, you need to understand your worth. So many freelancers inadvertently undersell themselves, which can result in a loss of income on your part. So, you need to conduct extensive research into your industry and understand how to price your marketing services.
Know what to charge per post and create a template that you can work from. Having a set list of prices is also good for budgeting purposes, as you can predict your annual income more easily. Another option is to reach out to other influencers to discover what they’re charging, and this can be a viable way to ensure that you charge the right amount for your service as a digital influencer.
Financial Planning: Understand your investment options
The earlier in your life that you begin investing, the more wealth you will be able to build. There are so many investments that you can make, so it’s really important to understand your options. For instance, you should consider:
- Stock market investments.
- Corporate bonds and commodities.
- Real estate.
- Cryptocurrency investments.
The crucial thing to remember with investments is that they are a risk. So, you need to do as much research as possible to mitigate the risk and only invest what you can afford. As a first-time investor, the stock market is a viable, long-term investment. While it can crash – 1929 and 2008 being two examples – it always recovers. In fact, over the course of the last 100 years, the average annual return on the stock market has been around 10%.
Investments enable you to build wealth for the future and protect you against rising inflation. It’s also a way of getting your money to work for you without you having to work for it. You can set up an investment account with an online brokerage firm and monitor your investments month on month as you grow your wealth.
Financial Planning: Know your tax laws
It’s not within the scope of this article to break down the complex tax laws of different countries. However, we can’t stress enough how important it is to know the tax laws of the country you’re living in. As a digital influencer, you are almost certainly self-employed, meaning your tax laws will be different from those of the main workforce in your country.
There are many advantages to being self-employed, but one of the drawbacks is that you need to submit your own tax returns, which isn’t always the case for employees. Therefore, we advise you to recruit the services of an accountant to help you understand and plan for your taxes. Do this proactively, and don’t wait until the tax deadline looms. Staying on top of your taxes will make a big difference to your lifestyle.
Also, many digital influencers live as digital nomads, which is an awesome lifestyle that takes you from country to country. The nomadic nature of the lifestyle also comes with a range of tax benefits, so again, it’s worth consulting an accountant to inform you of what you need to know. It’s impossible to manage your finances as a digital influencer without paying special attention to your taxes.
Financial Planning: Retirement isn’t as far away as you think
We get it. You’re young, adventurous, and have the world at your feet as a digital influencer. But did you know that most people need in excess of $1 million to retire comfortably? That’s a lot of cash! Now, you don’t necessarily need to contribute to a pension when you’re in your twenties, but you do need to think about what retirement means to you.
Do you want to kick back on a beach with your partner, sipping Pina Coladas while watching the world go by? Or do you love your job so much that you think you will be involved in some type of marketing long into your retirement years? Either way, you need to plan a little nest egg for yourself and your family.
There are so many ways to invest in your retirement, be it real estate or a standard pension. But the key thing is to start planning early. The earlier you put money away, the sooner you can retire – it’s as simple as that. So, while it might seem like a distant event right now, retirement isn’t as far away as you might think.
Financial Planning: Keep your expenses in check
Working as a digital influencer is an awesome lifestyle, and you might enjoy lots of travel and adventure. But at the same time, working in marketing can tempt you into buying products that you don’t necessarily need. While we’re not saying that you need to live like a monk, you do need to live within your means.
When you’re about to make a sizeable purchase, apply the thirty-day rule to avoid impulse buys. Basically, the rule encourages you to wait for thirty days before completing the purchase, which gives you time to reflect on whether it’s a worthwhile investment. You should do this for all big purchases, and it will help you keep your finances in check.
You should also avoid the temptation of frivolous spending. The key to financial planning is remaining in control of your outgoings while saving and investing for the rest of your life. So, while it’s important to live life to the max, make sure you’re spending within your means.
Financial Planning: Invest in your digital profile
You’ve probably heard that you need to speculate to accumulate, and this is particularly true for digital influencers. While some people grow their social profiles organically, others take steps to invest in their profiles in order to build engagement and follower levels much more quickly.
With that in mind, our Instagram Growth Plan is perfect for digital influencers and will help you take your profile to the next level. Our all-in-one package will skyrocket your Instagram growth and help you boost your engagement with your followers. We help you grow your monthly followers, number of likes and assist with a range of other metrics that will help you grow your professional brand.
But it’s not just on Instagram that we can help you grow. We also offer comprehensive YouTube and TikTok plans, as well as options for those working on the likes of Facebook and Twitch. Our goal is to help you transform your profile as a digital influencer, and we will have plans available to suit all budgets.
There’s a lot to like about the digital influencer lifestyle, but financial planning is super important, no matter the industry or niche that you operate in. As such, we hope the above tips inspire you to manage your finances accordingly and plan for the future.
And remember, if you want to grow your online brand more quickly, be sure to check out our range of social media growth plans, which will help to increase your follower base and post engagement.