The advent of the internet and rapid technological advances have opened up entirely new streams of earning a living. One of the most contemporary and exciting examples of doing so is being a social media influencer. With more and more businesses considering social media as integral to their marketing strategies, social media influencers are increasingly becoming a staple feature on most marketing campaigns. The global influencer marketing industry is expected to grow to $15 billion by 2022, up from as much as $8 billion in 2019.*
*https://www.businessinsider.com/influencer-marketing-report?IR=T
Bloggers, celebrities, and industry leaders with millions of dedicated followers are usually considered examples of successful social media influencers. Their ability to influence their followers make them attractive to companies to help pitch their products and services. Being a social media influencer can be a great way of earning good money, but success can be sporadic and patchy for the vast majority. There may be a couple of months of great earnings followed by a few months of little work until the next big assignment comes along.
The fiscal pressures of being a Social Media Influencer
Influencers earn in big chunks, and when they do, they typically tend to make far more than their salaried peers. But without the security of a steady flow of income, managing the money they earn becomes critical.
They are constantly under pressure to deliver stand-out work, which can involve expensive photo-shoots, traveling far and wide to create unique content to keep their followers engaged continuously, and a celebrity-like lifestyle to keep up social appearances. Also, influencers serious about building a career hire PR managers and social media managers.
So, how can social media influencers, who tend to have fluctuating income levels, find the means to manage their money effectively? Here are a few ways to play smart, ensure adequate savings for rainy days, and build a corpus to secure the future.
A cushion to fall back on: This is the most important tip and valid for anyone with an irregular income. It is diligently setting aside a certain amount whenever there is a good payoff—resisting the urge to spend recklessly instead of saving that extra money to create a cushion for times of low income.
Different accounts for different purposes: As an influencer, there will be multiple, and at times complicated fiscal transactions. It is imperative to avoid managing business through one single account. A base bank account that accrues all your income should feed into separate accounts for monthly budgets and another for savings and investments. Investing in suitable equity mutual funds, putting away small contributions every month could go a long way in ensuring a solid fiscal foundation.
Health and Life Insurance: Freelancers like social media influencers do not have employers to offer them medical insurance facilities. Being medically insured means, we can handle medical needs without having to deplete our savings. Similarly, a life insurance policy can not only protect families from an unfortunate eventuality; it also acts as a safe instrument for long term savings.
Get Professional Advice: The key to truly succeed as a social media influencer is a financial discipline. Being a social media influencer can be time-consuming and stressful, deprived of the time to keep an eye on managing our money. Just as a social media manager is essential to help grow an influencer's business, a financial expert can help ensure your financial well-being.
Develop additional streams of income: Most influencers engage followers with highly unique content. Content that spans travel, photography, nature, celebrity gossip, cuisine, fashion, and industry expertise, among thousands of other topics, opens up various ways influencers can monetize their content. E-books, podcasts, sponsored content, tutorials, affiliate links, and becoming brand ambassadors are just some of the options that social media influencers can choose to extend their streams of revenue. There are many examples of influencers even launching their brands of products or services.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
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