The Real Reason Creatives Are Broke (3 Easy Mistakes)

Mistake #1

If I asked you right now, “Are you running a real business, or are you just winging it at the moment?”

What would you say?

Before you answer, here’s a reality check—most creatives think they’re running a business… but they’re actually running a very expensive hobby.

Here’s where it goes wrong:

➡️ Splashing money on the latest gear –Look, gear matters—no argument there.

Your work depends on your tools.

But let’s be real:

• Are clients really noticing the difference between your 2024 and 2025 camera?

• Will that new lens actually unlock better work, or are you just chasing excitement?

• Have you fully maximised the gear you already own?

A photographer who truly knows their craft can take a stunning image with a five-year-old camera. A videographer who understands lighting and framing will outperform someone with the latest 8K camera but no creative vision. 

➡️ Mixing personal and business finances – Be honest… we’ve all been guilty of that.

How many times have you scrolled through your mobile banking, having no idea what this £149 Amazon charge from six months ago was?

A business expense? A personal splurge?

And when year-end rolls around, it’s total chaos.

Was that a tax-deductible purchase or just another impulsive buy at 2 AM? Good luck figuring that out!

➡️ No plan for slow months – It’s no secret that creative professionals thrive on projects — and this is not always possible.

That’s why it’s on you to reduce your reliance on one-off gigs.

It’s time to focus on building a more predictable, steady income stream—because creativity is great, but so is knowing when your next paycheck is coming!

How to Fix This (Without Overcomplicating It)

✅ Go through your equipment - If you haven’t used a piece of gear in 6+ months, ask yourself:

• Do I actually need this?

• Could I sell it and reinvest that money into something better?

• Could I rent it out to others and make passive income?

✅ Separate your finances – Open a business bank account so you can see exactly where your money is going.

✅ Think long-term – Instead of chasing one-off projects, start thinking about retainers, passive income, or scaling your services.

Mistake #2

Let me ask you something…

If HMRC sent you an email right now saying, “You owe £20,000 in taxes—pay up immediately,” would you:

A) Calmly pay it and go about your day?

B) Break into a cold sweat and frantically Google, “Can I go to jail if I don’t pay taxes on time?”

If you picked B, you’re not alone.

Most creatives get absolutely blindsided by their tax bill.

I know a lot of you just take a wild guess, cross your fingers, and hope the actual number isn’t too far off when it finally shows up.

A solid strategy… if you enjoy living on the edge!

You have to understand that your money isn’t your money…

At least, not all of it.

The way you should think about it is - when you’re self-employed or running a limited company, a chunk of the money you receive from clients already belongs to HMRC.

When you are PAYE employee it’s very easy. The tax is deducted by your employer, and you receive your net salary.

As a business owner, you need to get used to planning and setting money aside.

How to Fix This (Without Overcomplicating It)

✅ Set aside 20-30% of every payment you receive. Treat it like it’s already gone. If you don’t need it for tax? Great—you now have extra savings.

✅ Know your tax deductions. Gear, software, travel—there’s money you don’t need to give to HMRC. Learn what you can claim.

✅ Track your income like a business owner. Because you are one. Apps, accountants, even a simple spreadsheet—just don’t wing it.

Mistake #3

It’s 11:30 PM, and Jake—an insanely talented videographer—is still editing a client’s project. He’s exhausted. His eyes are burning from staring at the screen, his back is killing him, and his third coffee of the night is cold.

But he keeps going because the client needs it by tomorrow.

He finally finishes, exports the final version, and sends it off. Done.

Then he looks at the invoice he sent.

£450.

For a week’s worth of work.

And that’s when it hits him—he just worked for less than minimum wage.

Now here’s the worst part…

Jake didn’t get scammed. He didn’t get lowballed.

He did this to himself.

Because Jake—like most creatives—has no idea how much his work is actually worth.

Many creatives:

• Guess their prices instead of calculating profit margins and actual costs.

• Fear charging more because they think clients will leave.

• Forget to include “hidden” costs like taxes, software, and admin time.

How to Fix This (Without Overcomplicating It)

✅ Stop guessing your prices—calculate them. Deciding how much to charge a client depends on so many things.

The distance, the gear, client expectation, PROFIT MARGINS!! TAXES!! VAT!!

Maybe some of you had an A-ha! moment just now 😀

✅ Realise that the best clients don’t pick the cheapest option. If you charge more, you’ll attract serious clients who respect your work.

Bad clients leave. Good clients stay. You make more with less stress.

Because at the end of the day, if you don’t know your worth, no one else will.

Now What?

You might be getting clients, doing great work, and feeling busy… but if your bank balance doesn’t reflect that? Something is broken.

The truth is, most creatives are leaving thousands on the table—whether it’s through bad pricing, tax mistakes, or financial blind spots they don’t even realise.

If you’re tired of feeling like you’re working non-stop but still stressing about money, let’s fix it.

For the next 5 days, I’m offering free consultations to help creatives like you build a financially stable business that actually pays you what you deserve.

The creatives who succeed aren’t always the most talented. They’re the ones who understand that making art is one thing—but making money from it is a whole different skill.

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