Credit Cards
Yes, we’ve all been tempted. You get one or two or five envelopes a week that exclaim that “You’ve Already Been Approved!” And who doesn’t crave approval?
So you tear it open, and there’s a simple form to fill out that will make any number of delightful and convenient credit cards wing their way to your abode. And you look at the generous credit limits — $1,500 here, $2,000 there, trusting souls offering you $5,000 — and you do the math. Before you know it, you’ve got a plan.
Here’s one word of advice: Don’t.
Here are two words of advice: Forget it.
Here are four words of advice: It’s a bad idea.
Here are eleven words of advice: You’re going to lose your shorts and
maybe even your house.
Sure, you’ve heard the stories about moviemakers who put their movies — and their credit ratings — on the line. They rolled the dice, and they won!
Yeah, sure. And we’ve got some prime real estate in Florida that can make you a fortune.
It’s not just the risk factor that concerns us. We all know that moviemaking is a crap shoot. We actually like risks. It just isn’t a smart plan.
Let’s say that you decide to finance a portion of your movie with credit cards, about $5,000 worth. If it’s the $5,000 you need to finish the movie, you’re in trouble. Why? Because even if you can finish the movie in a month — edit it, do the soundtrack, complete your publicity materials, cutting great deals at every point — it’s going to be at least another month before you sign with a distributor (and that’s being very, very optimistic). And then there’s a minimum of three months before they work it into their distribution schedule (again, wild-eyed optimism). And then there’s another four to six months before exhibitors send in the money they owe you (optimistic doesn’t begin to describe what that is).
That’s ten months. You’re paying 18% interest (if you’re lucky) on $5,000 for ten months — minimum. That’s at least $750 in interest, and you still owe $5,000. And what if you can’t get the movie finished that quickly? And what if you can’t find a distributor? And what if, what if, what if? Of course, if you want to put yourself in some deeply serious trouble, use the $5,000 to shoot the movie. That will tack on another six months or a year to that ever-mounting interest monster you’ve created.
The stories that have circulated about moviemakers charging entire features on their credit cards are good copy, but they’re also simply bad business, grossly exaggerated, flat out not true, or about moviemakers who like to play “chicken” with freight trains.
If you want to boast that you charged your entire feature on your Bloomingdale’s card in your press releases, go right ahead. We won’t let on. But the next time you get one of those “You are already pre-approved” mailings, do the smart thing. Just say no.
Scrimping
Scrimping is an unpleasant word. Say it out loud once, and you’ll see what we mean. Scrimping. It has an unpleasant ring, doesn’t it? It sounds like a particularly demeaning part of a fraternity hazing. “Yeah, first they shaved our heads, then we had to climb down into the sewers and spend the night scrimping rats.”
Scrimping is not fun. It requires sacrifice. It requires discipline. It requires saying no to common urges, such as the urge to eat out, the urge to buy extravagant non-necessities, the urge to get a new pair of sneakers when your current sneakers are only five years old and the holes in the bottom aren’t really all that big as long as you stay out of puddles and wear two pairs of socks, which also have holes in them.
Can a person really scrimp together a budget for a digital feature? That depends on the person, their income, and the willingness of their significant other to join in the festive mood of scrimping and living like a pauper. As Ben Franklin said, “Two can live as cheaply as one, but they have no idea how cheaply they can live until they try to scrimp together the money for a digital feature.” We’re paraphrasing, of course, but you get the idea. Diligent, concerted, and ongoing scrimping can put an extra wad of cash in your pocket every month, and that wad could add up to a big part of your budget.
Scrimping can take many forms. You can bring your lunch to work instead of eating out. At two to five dollars a day, that gives you an extra $500 to $1,300 a year. You can buy food in bulk at co-ops. You can stop buying those expensive breakfast cereals and treat yourself to oatmeal, the breakfast of scrimpers!
Even when you’re scrimping dutifully, money can still slip away incrementally — a few dollars here, a few dollars there, adding up to a big part of your income. You can use this incrementalism to your advantage, however, by having an extra $50 or $100 deducted from your paycheck every two weeks as part of your tax withholding or simply increasing your W-4 tax deduction (creating a sort of forced savings plan).
At the end of the year, your refund will include an extra $1,300 or $2,600, which can buy you all sorts of digital luxuries, like a camera or an editing system.
Of course, many would argue that letting Uncle Sam hold your money for a year doesn’t earn you an iota of interest, while even the worst bank savings account will pay you something for the honor of holding your money. True enough. The value of the Uncle Sam savings plan, though, is that once you fill out the form, it’s out of your hands. The money is taken out every two weeks, whether you think about it or not. And it’s not available for you to use on something else.
Most people don’t have the discipline to set aside money every month; if you do, then skip the tax deduction step, and do it yourself. Some companies have employee savings programs that will take a set amount out of your paycheck and put it in a savings account. The result is the same — a bit more money toward making or finishing your movie.
Another scrimping method is to join a car pool to cut down on parking costs. Changing your own oil in the car will also save you some cash. If your climate (and commute) permits, you can simply get rid of the car and ride a bike to work. You’ll save on gas, auto repairs, and insurance. As an added bonus, you’ll start to get yourself in shape for the grueling rigors of movie production.
They say art is sacrifice. And they also say that scrimping sucks. They’re right on both counts.
