Money. Writers need it, but they don’t want to talk about it. It’s a touchy subject. We want to focus on our creative pursuits—not the financial side. And yet, if we want the big funding opportunities, we have to prove that we have put together a plan of how to use the allocated funds.
Barbara Deming Fund, Elizabeth George Foundation, and Creative Capital are a few of the many that require a planned-out budget when applying. And while that can feel very overwhelming, I think it’s important to start with a detailed template and then work your way from there.
This budget template is one of my favorites. Creative Capital lays out that you need to have a balance (same amount of money raised vs the same amount of money spent). It already has certain items like royalties already added in and honestly, since I’m working on my first book and I’ve never gotten royalties before, going by their numbers is a good start. Plus, I love their suggestion: pay yourself! Consider yourself an employee making money through your time and energy creating. In using this budget, I felt much more confident that I had a laid out plan for my project. I could see the items I had purchased and the things where I might add line items, like hiring a sensitivity reader and putting aside funds for that. Once I got to work on this budget, the financial side became less daunting.
This budget also inspired me to designate my specific yearly costs for my LLC writing business, which I can consider for tax deductions every year. Having a workspace that I rent (even if it’s the desk in my apartment) is a cost that I can use towards my business.*
When applying for those covered grants, most places will not ask for such a detailed budget. Taking the time and reflection to make a detailed one will only benefit you. When applying to other places that need less, you can always rely on your well-defined one in order to outline what you will need the funds for. The work you do now in this field will only benefit you later!
*Please note: I work with a certified tax accountant in order to establish my deductions for my writing business. Please do not solely rely on my advice here for tax purposes.
Thank you for this article. As a creative person we are frequently dismissive of the nuts and bolts of economics. It is important to lean into that scary science too.