How to be a performer and not be dirt poor: Rachel Cole talks careful cash with David Harris

Welcome to Stage Door Shrink, a regular column penned by Rachel Cole aimed at helping performers chortle their way to a #win.

Australian Coins Money
Image by Ben Hosking

Years ago, I attended a Musical Theatre Workshop and heard Katrina Retallick give some wisdom on acting and money:

  1. Acting is feast or famine. Learn how to ‘fill your barns’ in the good times.
  2. There isn’t enough work in Australia to stay constantly employed, find something else you like doing.

When you land your first job, it’s easy to mistake yourself as the Powerball winner. All that money magically appears in your bank every week!

“Drinks on me!”

(In my case: “Come to my parents’ house in Hurstville and we’ll share a cask”.)

Most young actors have spent their first few pay checks before they even start the job. And you should go nuts and celebrate. For a little while. Then rein it in; you have a barn to fill.

Financially, people tend to fall into two categories: Savers or Spenders. Those who know me know that nothing makes me happier than a bargain. I’m cheap. My mum taught me that the kids at my private school who had fridges with ice/water dispensers on the front were too rich for their own good. We were SO poor, that I couldn’t go on the music tour to Belgium in year 10 (#deprived) and didn’t get lunch money for pizza rounders (#scab). This mentality has stayed with me into adult life. I never found saving money hard because I was terrified of spending it.

Saving money is a question of delayed gratification. That is, you will be a good saver IF you can resist an immediate temptation for a bigger reward later. There is a famous Stanford University study called ‘The Marshmallow Experiment’. An adult gives a group of children a marshmallow each, and tells them that if they do not eat it for the next 15 minutes, as a reward, they will get 2. (Control yourself, show discipline and you will get a greater reward). The adult then leaves the room. Results show that, the children who don’t eat the marshmallow and can tolerate delayed gratification turn out to be more successful in every area of life (marital, educational, financial). In fact, delayed gratification is a better predictor of life success than your IQ. I.e. Learn to forgo a small reward now for a bigger one later and you will be successful. A very important lesson for saving money.

David Harris 1
David Harris. Image by Blueprint Studios

Careful Cash With David Harris

My expert this week is David Harris. David Harris has become one of Australia’s foremost leading men since first appearing in The Boy from Oz in 1997. On his first show, David began working with performers he idolized, who were well known, in their mid 30s, constantly employed, but still living paycheck to paycheck. He made a decision on the spot to be wise with finances. So, he educated himself and now owns a portfolio of investment properties and has excellent advice to offer on how to be a financially sensible actor. Professionally, David has 3 Helpmann and Sydney Theatre Award nominations, a Green Room Award and has played leading roles in Miss Saigon, Legally Blonde, Wicked, Beauty and the Beast, Thoroughly Modern Millie, Little Women and many others. He now lives in New York City, and his excellent advice is below.

1. Be wise when working

If you are a working performer, you are in a very unique financial position to do very well for yourself- especially if you are touring and receiving a tax-free living allowance. Cash in on that time and be wise. Yes, it is exciting to have an income after studying or being unemployed, but be future minded even if you’re young. Pay off any non income-producing debt, like credit cards and car loans whist receiving a good income.

2. Know your tax exemptions

Performers have so many legal ways to lower their taxable income (i.e. Claiming agent fees, singing lessons, theatre tickets). Make it your business to educate yourself. It is your money and no one else will care about it as much as you will so learn how the system works. If you are interested in property investment, there are also huge tax breaks there as well – lowering your taxable income, sometimes to the point that no tax is paid each year. I highly recommend a book by Noel Whittaker called “Borrowing to Invest”.

3. Small savings add up

Do you really need the latest MacBook, iPhone or that new shirt? Think about the non-essentials, and compare them to what you’re saving for- name what you’re saving for. I.e. do you want that new shirt as much as you want the apartment? Go to cheap movie night. Cook your meals at home rather than eating out. Buy foods that are on sale or in bulk and freeze them. Eat vegetables and fruit seasonally as its far cheaper. Cancel unused memberships and price compare on insurances.

4. Consider diverse sources of income

When you’re out of a contract, the next job could be a few weeks away or it could be a year. It is unwise to live off savings for a year. At times, I have taken other jobs to pay the mortgage- i.e. a window cleaner after The Full Monty closed early. My advice is, always keep a safety net of money that you don’t touch, for emergency sake. If you have to dip into it, time to get a casual job.

5. Draw up a budget

This doesn’t mean you have to log everything single thing you spend. Budgets are helpful information; as sometimes people just aren’t aware of how much they are spending on say food or entertainment. Alternatively, you could take $200 out of your pay each week, keep that cash in your wallet and don’t spend anything beyond that. Using PayPass and credit cards, it is easy to forget how much you spend.

6. Be smart when you land a long contract

It can be hard for performers to get a home-loan. This is one of the benefits of having a long contract. The bank considers that as good as having a full time job and will lend to you. Work out if you want the commitment of property, set a deposit goal, and visit a mortgage broker with your contract in hand.

7. Know the difference between good debt and bad debt

You should only have debt or a loan on an appreciating asset- something that will increase in value over time i.e. an investment property or shares. Debt on a depreciating asset is dangerous.   Meaning you pay huge amounts of interest while the item is losing value. I.e. Credit cards or a car. Bad debt should be paid down as fast as possible to minimise avoidable interest.

8. Get a team of professionals around you

Find a good tax accountant who knows about the benefits performers are entitled too. If interested in property, visit a mortgage broker, it’s free and they will get you a better deal than visiting the bank managers yourself. As you start to accumulate wealth, it is useful to talk to a financial advisor. Buyers Agents are useful if you are short of time or on tour and don’t have time to go and look at property. They will charge 2-3% of the purchase price but depending on your circumstances can get you a great investment property in a short amount of time that you yourself do not have to be able to source a property. They are in the market property everyday, whereas most of us are not. Choose your team wisely. Interview them as you would a theatrical agent, make sure they are qualified, on the ball and what you need.

9. Workout what lifestyle you want and what you’re willing to give up

When I need to reign in the spending, or save for something in particular, there are some things I drop immediately- eating out and buying non-essential clothes. But I won’t give up my gym membership, because I enjoy it and it’s important for our profession. Some people would give that up and exercise outside, do the Bondi to Bronte etc.… It’s an individual choice, but work out what you can live without. You don’t have to lose your social life, but catch-up with friends by going for a walk rather than going out for breakfast or eat first at home and have a coffee out instead of a full breakfast.

10. Stay informed

Always seek ADVICE and EDUCATE yourself in different saving/investment strategies you so you are well informed. Do your due diligence and if you are investing in property, fully understand the commitment beforehand. Get a good team and know that family and friends are not always right, unless they are also successful in that field of investment.


Rachel Cole is a Research Psychologist masquerading as a Swing & Nessa Rose Understudy on the Australasian tour of WICKED. She likes to think about what makes people tick. She also likes: Podcasts, politics, pepperoni pizza, property, puns, puppies and cheap things. If you know of a political podcast full of puns we can listen over a cheap pepperoni pizza while we walk a cheap dog looking at cheap property, we might just be fast friends.

Rachel Cole

Rachel has a degree in Psychology from The University of Sydney but is currently masquerading as understudy for Miss Honey and Mrs Wormwood in the Australian production of Matilda the Musical. She likes to think about what makes people tick. She also likes: Podcasts, politics, pepperoni pizza, property, puns, puppies and cheap things. If you know of a political podcast full of puns we can listen over a cheap pepperoni pizza while we walk a cheap dog looking at cheap property, we might just be fast friends. Follow Rachel on Instagram at: @rachelacole.

Rachel Cole

Leave a Reply

Your email address will not be published. Required fields are marked *