Before investing lots of time in researching funding and finance options, it’s best to spend some time working out exactly how much – and what kind – of money you need. We all need different levels of income to develop our practice – you need know what level is right for you.

Money Saving Expert has a great online budget tool to help with this.

Looking at your income needs across a year is a good way to plan as some costs will be seasonal (like holidays, appearing at fairs or taking part in open studios). Key cost areas you should consider include:

• Living costs – rent / mortgage, insurance, regular travel costs, utilities, childcare, social life and hobbies, holidays, clothing, food etc.
• Savings and debts – loan repayments, savings, pension contributions, life insurance etc.
• Professional costs – memberships or subscriptions, professional insurance, website hosting and development, materials, networking or research trips, studio rent, courses etc.
• Specific plans – projects planned (like residencies, exhibitions, new work) should be included

Budgeting enables you to work out your costs, but you should also calculate a rate of pay that suits your stage of career, past experience and aspirations.

What kind of money do you need?

There are three main types of money you might be looking for: development capital, working capital or revenue.  Each is used for different things:

For more detail on ways to generate different forms of income, see our and ideas on making the most of your assets.