Financially Planning for the NFA Convention

1. Financially Planning for the NFA Convention Financially Planning for the NFA Convention by Anamarie Diaz, the Financial Flutist Are you attending the NFA Convention this year? This annual event is filled with performances, panels, roundtables, presentations, competitions, and so much more. While this is a fabulous opportunity to gain valuable experience, network with other flute players, and explore repertoire and instruments, it can be a high expense to attend. Here are some ways to help plan how to afford the convection without feeling the financial burden or guilt while you’re there. Saving for the Trip Before you attend the convention it’s important to know how much you can afford to spend. Some of the expenses you want to consider when identifying the total amount you are able to afford include the convection registration fee, travel costs (hotel and airfare), food, and exhibit hall. While some of these costs are fixed, like the convention registration fee, others are more unknown, like food costs.

2. Start by calculating what the total fixed costs amount for attending the convention are by adding up all the fixed expenses. Once you calculate the total fixed cost amount, subtract that from the total amount you can afford. The number that is left over will be the amount you can spend on the remaining costs, like food, exhibit hall, etc. Think about saving for the total cost you can afford over multiple months. For example, let’s say the total amount you can afford to spend for the convention is $800. Instead of trying to save that amount in 1 month, try saving for it over 3-5 months or even longer. Number of Months Saving Amount to save monthly (for a total of $800) 3 $266 4 $200 5 $160 The NFA staff has continued to focus on affordability and accessibility for the convention this year, with hotel rooms offered at a steep discount. They have secured a block of rooms at the nearby Hyatt Regency Hotel and the Renaissance Hotel with fixed rates starting at $149 per night. You can access these reduced rates through Wednesday, July 12, by visiting the NFA website. In addition, consider rooming with a friend throughout the convention to lower the hotel cost even more. Food can be one of the biggest costs throughout the convention. While eating at the hotel can be convenient, there are many more cost effective options around the hotel. Be sure to look at all of your food options before committing to one place. Shannon Lotti, 6-year convention attendee and current student at Bowling Green State University provides this tip, “When I get to NFA each year, I go to a local grocery store to buy some inexpensive food. I find that the constant eating

3. out gets expensive. Grabbing a loaf of bread and some peanut butter and jelly makes enough of a difference that I can buy a few more pieces of music in the Exhibit Hall!” Finally, don’t forget to consider the “hidden” costs of attending. This includes things like coffee with friends and mentors, gas for the rental car/rideshare fees, and snacks while traveling to the convention. Spending at the Exhibit Hall One of the favorite parts of the convention for many flutists is the exhibit hall. Spending time at the exhibit hall is a great opportunity to find new repertoire, buy music accessories, and try out and buy a new instrument. That being said, going into the exhibit hall without a plan can be dangerous for your pocket book. Here are three ways to ensure you don’t break the bank at the exhibit hall: 1. Purchase planning vs. Impulse buying One of the biggest culprits of overspending at the exhibit hall is impulse buying. That’s when you see something that you didn’t plan to spend money on but spend money on it anyway. Taking the time to plan exactly what you want to purchase will help keep you within the overall amount you can afford to spend. 2. Purchase plan before you get to the convention Before you attend the convention, take some time to think about exactly what you need/want at the exhibit hall. If you’re looking for music, be sure to go through the music you already have to ensure that you don’t already have it or have something similar. 3. Plan an exhibit hall day Instead of going into the exhibit hall randomly throughout the convention, plan an “exhibit hall day.” This will help limit any desire to impulse buy and help you stick to your plan. Buying a New Instrument at the Convention

4. For the majority of musicians, the conditions in which we will be able to purchase a new instrument is by financing it, or in other words, by taking out a loan. A similar concept to when we take out an auto loan to buy a new car. Few of us have the financial means to pay cash for a new flute, but are in need of a new instrument. So the solution will be to finance it. Borrowing money in any capacity is a big responsibility and should only be done once you have a working knowledge of what you can afford on a monthly basis. Here are the basic steps to help you determine what you can responsibly afford: 1. Determine what your monthly household income is. This is the amount of income you make after tax. 2. Divide your monthly expenses into three categories; household expenses, wants/lifestyle expenses, and debt. 3. Add up your monthly debt expenses. 4. Calculate what percentage of your monthly income goes towards debt expenses: (Monthly Debt Expenses/Monthly Income)100 = X% The lower the percentage the better. A general rule of thumb is to keep your debt expenses below 36% of your monthly income (if you can keep it around 20%, that’s even better!). If you find that you are paying more than 36% of your monthly income towards debts, it is wise to pay off some debts before taking on any new debt. Taking on too much debt can be a heavy burden on your monthly expenses and lead up to a spiral effect of relying on credit. If you find that a small percentage of your monthly income goes towards paying off debt, determine what monthly debt payment you would be comfortable with by plugging in different monthly amounts (like a monthly $200 debt payment etc.). Make sure that with whatever number you are comfortable paying your monthly debt payments stays below that 36% of your total monthly income. Knowing a number that you are comfortable with and can afford paying will be helpful when it comes time to choose a financing option. With so many vendors at the convention, you have plenty of options to choose from when buying a new instrument. Before buying a new instrument, consider

5. the total amount you can afford (after all monthly payments), how much you have already saved, and what monthly payment you can afford. Keep in mind that almost all instrument vendors will have the same flutes at the same price. However, consider purchasing your instrument from Flute World. Flute World has one of the highest standards for set up. This means that Flute World has a better initial value, will spend the most time ensuring the instrument is top notch, and has affordable financing options. This includes rates as low as 12.99%, loan terms up to 60 months, and no penalty for paying off your loan early. For more details on FluteWorld’s financing options visit https://www.fluteworld.com/financing for more information. To learn more about creating financial stability as a musician visit www.thefinancialflutist.com for more information.