Every few months, someone declares the music industry broken. Streaming payouts. Label politics. Tour economics. Mergers. AI. The usual suspects.
But the real problem? The one that actually breaks careers, fuels burnout, and locks talented people into toxic roles?
Lack of personal financial literacy.
And I’m not talking about business acumen. Most executives I work with are smart, accomplished, and have a sharp sense for dealmaking and brand strategy. But when it comes to their own finances, they’re flying blind.
Here’s what that looks like at the executive level:
1. Emergency Funds Are MIA
Even earning $250K or more, many execs don’t have a cash reserve. When layoffs hit or bonuses shrink, panic sets in. You can’t plan clearly from a place of stress. Three to six months of expenses in cash is a minimum, not a nice-to-have.
2. Cash Flow Is Unclear
You know your income. But do you know your actual spending, savings rate, or burn rate? Most don’t. Without a grip on cash flow, it’s impossible to make smart decisions about deferrals, equity, or lifestyle upgrades.
3. Taxes Are a Guessing Game
I’ve seen executives shocked by six-figure tax bills because nobody explained how RSUs or deferred comp get taxed. Planning ahead doesn’t just save stress—it often saves money too.
4. Insurance Gaps Get Ignored
Disability and life insurance are often overlooked after leaving a label. If your income stops, would your household be okay? You don’t need to overinsure—but you do need a plan.
5. Investing Gets Delayed or Outsourced
Many execs either ignore investing completely or hand it off without understanding what they own. Both options create risk. You don’t need to be an expert, but you do need to be informed.
6. No System, Just Reacting
Without a framework, decisions happen last-minute. That leads to missed deferral elections, inefficient 401(k) contributions, and scrambling during open enrollment.
Why It Matters
When financial basics aren’t handled, everything else suffers. You take jobs for the wrong reasons. You stay too long. You can’t afford to take risks. And the burnout creeps in.
This isn’t just a personal problem. It affects how the entire industry functions. When the people steering the ship are financially unstable, long-term thinking goes out the window.
You Don’t Need a Finance Degree. You Need a System.
Start with the basics:
- Know your income and expenses
- Build a real emergency fund
- Protect your income with insurance
- Understand your taxes and plan ahead
- Invest consistently and intentionally
- Revisit your plan every year
I work with music executives to help them build personal financial systems that match their career stage and goals.
I’m Spenser Liszt, a CERTIFIED FINANCIAL PLANNER® professional helping high-earning music executives make smart, confident decisions with their money.
I provide straightforward, flat-fee, advice-only financial planning—no sales, commissions, or asset management. I don’t take custody of your investments; I show you how to manage them yourself with a clear, structured plan.
If you’re a music executive and want a thoughtful, structured approach to your finances, let’s talk.
