How can film and TV workers cope with Hollywood slowdown? Financial experts offer tips

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I’ve been there, struggling to make ends meet and feeling like I was drowning in debt. It’s a tough situation, but I’ve learned some valuable lessons that can help others in similar circumstances.

Many film and TV industry experts are finding it challenging to be patient for the industry’s recovery, which was anticipated following the conclusion of writers and actors’ strikes.

Cyd Wilson, the executive director of the SAG-AFTRA Foundation, shared that during the peak of the strike, the foundation’s emergency fund received approximately 100 applications for aid each day. Currently, this number has decreased to around 10 applications daily. However, Wilson added that the challenges faced by members extend beyond those with modest acting incomes to include the working class within the profession.

As a cinema devotee, I’ve come across many stories depicting individuals who used to bring home an annual income of $100,000 or even $200,000. Yet here they are, seeking assistance. They’ve exhausted their savings and dipped into their retirement funds, the 401(k)s that were meant for a more secure future.

Financial advisors recommend creating a budget for saving during prosperous periods as a means of preparing for tough economic times. However, if you don’t have a budget, there are still actions you can take to preserve your finances until business resumes as usual.

Here are some of the top suggestions for stretching dollars and ginning up extra income.

Know where your money is going

Justin Pritchard, a financial planner based in Montrose, CO, advises starting by closely examining your monthly expenses. You might gain new insights or be shocked to discover where your money is being spent.

I’ve come to realize, after following the financial advice of experts like Paco de Leon, that neglecting to keep a close eye on my finances and crossing my fingers for the best outcome is a common pitfall.

The majority of individuals manage two significant expenses: housing and transportation. Decisions concerning these expenditures have a significant impact, according to Neela Hummel, a financial planner in Santa Monica. Would you consider sharing an apartment or home to reduce costs? Or perhaps opt for a used car instead of a new one to lower your monthly payments?

In both situations, Hummel pointed out, the issue is if the pleasure derived from owning a home or a car is worth the sacrifice of giving up other things.

As a lover of delicious meals, I recognize that food ranks as one of our significant expenses. Joanne Danganan, a wise financial counselor based in Los Angeles, shares this insight with her clients. She advises them to scrutinize their dining out expenditures first when managing their finances. For those who lack the time or resources for grocery shopping and cooking, she recommends an excellent compromise: subscribing to a meal kit service that delivers ready-to-prepare meals at your doorstep.

Make a plan (and get help doing it)

It’s crucial not only to be aware of your existing spending patterns but also to devise a strategy for reducing the difference between your expenditures and the slow-moving income. According to De Leon, the secret lies in “making small improvements each week.”

Hummel suggested seeking professional guidance immediately when your finances are significantly affected by an unexpected incident, like a strike. “We often spend a great deal of effort rectifying situations that would have been better handled earlier,” she explained.

Film and TV professionals can seek financial advice from various free resources in addition to hiring experts. A valuable starting point is the Entertainment Community Fund, previously known as the Actors Fund. They provide a comprehensive financial wellness program and conduct workshops on budgeting, careers, housing, and numerous other subjects.

At present, all sessions are being held virtually, welcoming anyone who considers themselves a member of the creative industry.

“Tina Hookom, the social services director at our organization, mentioned that one of our key advantages is offering comprehensive assistance. When individuals approach us for aid regarding a specific matter, such as affordable housing, we ensure they are linked to a complete array of relevant support resources.”

The Times provides a complimentary subscription newsletter named “Totally Worth It” on budgeting and personal finance management. Feel free to enroll using the link underneath.

Look for new sources of income

As a passionate film enthusiast, I’d like to share some unsolicited yet vital advice: find creative ways to generate income for your household, no matter how stable you believe your financial situation to be. This piece of counsel might not be welcomed with open arms, but it could prove invaluable in the long run, especially if we consider the potential wave of job losses that technological advancements may bring to our cherished film industry.

Instead of suggesting, she recommended initiating your job hunt by reaching out to the professional contacts you’ve accumulated. She emphasized expanding your horizons beyond your inner circle of acquaintances, explaining that many prospects frequently originate from connections that are only loosely linked to you.

Danganan proposed the idea of working as an online coach or tutor, sharing the knowledge gained from her experience in the film and television industry with both industry insiders and outsiders. She noted that many people in this field possess valuable skills that can be applied elsewhere.

Based on my own experiences and observations, I strongly agree with Hummel’s perspective that one should focus on the skills and tasks they possess rather than their job title when considering career opportunities.

Temp agencies serve as valuable resources for securing temporary jobs and offer insights into applying the expertise of Hollywood in various sectors.

Hookom advised those facing financial struggles in the entertainment industry not to abandon their careers. Instead, she suggested they consider enrolling in workshops offered by the Entertainment Community Fund’s career center. These programs aim to help individuals approach their predicaments with a thoughtful and strategic perspective.

The hub can link you to resources for freelancers, business ventures aligned with your current work, and significant projects. It’s also there to support you in making a change from the entertainment industry if needed.

Negotiate your bills and interest rates

Recently, Hookom mentioned, the Entertainment Community Fund has noticed an increasing number of industry pros struggling with debt. One of their financial wellness programs focuses on teaching effective debt management strategies, such as negotiating with creditors to secure better repayment plans.

As a movie buff, I’d put it this way: When it comes to dealing with credit card companies, I’ve learned that sometimes, a friendly conversation can lead to lower interest rates on my unpaid balance. And if life gets in the way and I need more time to make my next payment, I can usually adjust the due date online or by giving them a call.

As someone who has dealt with unexpected medical bills in the past, I strongly believe that negotiation is a powerful tool when it comes to managing healthcare costs. Just like how gas stations often offer lower prices for cash payments, many healthcare providers are open to negotiating and offering discounts or payment plans to those paying out of pocket. This can be especially beneficial for the uninsured or underinsured.

As someone who has gone through the challenge of dealing with hospital debt, I want to share another potential solution: investigating if you meet the criteria for a charitable care program at your hospital. According to NPR’s Life Kit team, nonprofit hospitals are obligated by federal tax law to provide free or reduced-cost care to patients with lower incomes. So, it’s essential to look into this option. For assistance in determining eligibility, you can refer to the website of Dollar For, an organization that advocates for patients’ rights.

Additionally, I’d like to know the age of your debt. Generally in California, if you have not made any payments on a debt for over four years, creditors or collection agencies cannot sue you to recover the remaining balance. However, they may still attempt to collect the debt from you even after this period.

Don’t dig a deeper hole

If you have numerous credit cards with balances and additional bills accumulating interest, consider taking out a single loan to merge all those debts into one regular payment. This could potentially bring about a major advantage: securing a lower interest rate than what you’re currently paying on your credit cards. Based on Bankrate.com statistics, the typical personal loan interest rate stands at 12.22%.

While consolidating your credit card debt can be beneficial by simplifying your payments and potentially reducing your interest rates, it’s important to be cautious. The downside is that if you continue to charge more on those cards than you can realistically pay off each month, you may end up increasing your overall debt. Additionally, these loans could come with high or hidden fees. For a clearer understanding of how these loans function and what factors to consider before applying, refer to the following explanations from Credit Karma and NerdWallet.

An alternative option is moving existing debt from older credit cards to a new card with an initial low interest rate. Many banks currently provide 0% interest on transferred balances for up to 18 months. By taking advantage of this offer, you could potentially save significant amounts in interest costs if you successfully pay off your debt within the given period, despite paying a transfer fee.

If you’re struggling with federal student loan debt, check out the U.S. Department of Education’s new income-driven plan called the SVE (Saving on a Valuable Education) Plan. This alternative offers several benefits compared to older plans. With SVE, your monthly payments are reduced, and if you make all your payments on time, any extra interest charges will be forgiven. In the past, if your income was too low to cover even the interest on your loan, that unpaid interest would be added to the amount you owe.

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2024-07-18 22:23