‘Bachelorette’ Star: 6 Ways I’m Managing My Money After Being on Reality TV
Before he starred on “The Bachelorette,” Jason Tartick spent a decade working in the banking industry. His professional background has helped him to manage his new financial reality following his stint on TV as he juggles multiple businesses, projects and his public persona.
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Tartick is currently advising small business owners on how to maximize their outcomes with TurboTax Live Business as the Sept. 16 filing deadline for S-Corps and Partnerships approaches. He spoke with GOBankingRates about how going on reality TV changed his approach to finances, how his financial background has aided him through the process and how he avoids common money mistakes that other public figures may make.
Taking Risk Into Account
While many people who go on a reality TV show see it as a money-making opportunity, Tartick viewed it as a big risk.
“I was a senior vice president in corporate banking, had an MBA and was working my way up the corporate ladder,” he said. “So reality TV was a high-risk move. When you think about managing money, you always have to think about the risk that you are inherently taking on based on decisions you are making for your career track.”
Tartick knew that going on “The Bachelorette” could possibly derail his career.
“Making a move into reality TV was extremely high risk for future earnings and future career potential based on what happened,” he said. “I can name people who took a risk going on reality TV, and that risk will absolutely impact their career trajectory based on credibility and reputation.”
Because of this risk, Tartick said going on reality TV made him become more conservative when it comes to how he manages his money.
“Reality TV made me be more conservative with my money because I’m taking on so much risk publicly of what could happen with my brand and overall career,” he said.
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Knowing His Value
Tartick has amassed a massive social media following, including over 970,000 followers on Instagram alone. His social media influence has brought along with it the opportunity for lucrative brand deals, and his financial background has helped him to better navigate these and other opportunities.
“One of my career stops was as an underwriter, so I had to look at the analytics of a company to decide the risk we would take on in lending them money and our likelihood of being repaid,” he said. “I had to use an analytical skill set to decide what made sense [in terms of] a dollar amount.
“Interestingly enough, that same skill set that I used as an underwriter and then a lender, I now use to help me decide the value and the price point that I need to charge brands for social media collaborations, appearances and speaking engagements.”
Tracking His ‘Burn Rate’
When new opportunities and income streams are flowing in, it can be difficult to plan for what it will look like when these flows eventually stop or if an opportunity doesn’t turn out to be as lucrative as you planned. But Tartick is always mindful of his “burn rate” to ensure he won’t run out of cash.
“You have to monitor your burn rate — how much cash that you had prior to that decision are you going through, and how much cash can you burn in what period of time before you might have to go back to your old source of income?” he said. “How many months are you going to allow before you may have to go back to your old career path?”
In addition to having a plan to make pivots as needed, Tartick also has an emergency fund to help mitigate the risk of an opportunity that doesn’t pay off.
“Having that emergency cash to take a risk in a new career is so important to make sure that you’re [able to live] out your career dream,” he said.
Keeping Spending in Check
When someone becomes famous, that now often comes with many opportunities to make extra money to the tune of six or even seven figures. But this can be a double-edged sword.
“The biggest mistake I have seen creators make is they overspend assuming that that money will be coming in for the rest of their life,” Tartick said. “If you think about a doctor or a surgeon, the likeliness of having that cash inflow consistently until retirement is very high.
“The likeliness of a creator sustaining that income and growing that income until retirement is extremely low. People overspend for the current cash flow instead of looking over a long period of time.”
Setting Aside Money for Taxes
Some influencers and creators may forget to account for taxes on their new cash flow, which can end up costing them big time.
“The other biggest mistake influencers make is they are paid as 1099 contractors for the most part and they are paid a lump sum,” Tartick said. “When tax time comes, they get wiped out because they haven’t properly planned. You have to financially manage those inflows and your tax burden, because there’s always a question mark as to how long and sustainable it will be.”
Tartick said outsourcing his tax preparation has helped him immensely.
“As a business owner, as an entrepreneur, as a brand owner of my personal brand, it is so critical that you understand when you have to outsource,” he said. “Opportunity cost of time tells me my time is better [spent] elsewhere than managing tax strategy, tax reporting and tax filing.
“That is why I decided to outsource and work with TurboTax Business, which has professionals that can help me day in and day out.”
Balancing His Streams of Income
Tartick earns money through his businesses as well as through his personal brand, and balancing both can be a challenge.
“One of the biggest hurdles I’ve had to deal with as an entrepreneur and business owner is all the time that I commit to public-facing entertainment, content creation, appearances, speaking and anything in media,” he said.
“When I’m doing that, it’s building my personal brand but it’s taking away from the businesses I’m running. [But on the other hand], my personal brand is a big income source for me and part of my personal brand actually supports the businesses I own and invest in.”
Tartick said that balancing both is a “teeter-totter,” but he has found ways to balance and even integrate the two.
“One thing that has allowed me to be successful is to start thinking about how to connect my entrepreneurship and business ownership to my brand, which I’ve done by writing two books and starting a business podcast called ‘Trading Secrets,'” he said.
“Connecting a dotted line [between] entrepreneurship and my personal brand has been a challenge, but one I continue to work on day in and day out.”
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This article originally appeared on GOBankingRates.com: ‘Bachelorette’ Star: 6 Ways I’m Managing My Money After Being on Reality TV
