Are we telling you to skip your favorite concert to save money?? No, because life is short and tomorrow is not guaranteed. We are all for spending money on experiences that make you happy, but don’t forget about your long term financial goals in the process.
Why did concerts get so expensive? In the old days, artists made the majority of their money from selling records. Today, most of their money comes from live events and streaming revenue. Concerts have also become much more grand with insanely high production value. Taylor Swift reportedly has 90 big rigs following her around the country to make sure each show is unforgettably elaborate!
Also, the way tickets get sold has changed. Today, the big companies that sell tickets use “demand pricing” which is somewhat similar to Uber’s surge pricing and this results in higher ticket prices. And let’s not even talk about all the junk fees that are thrown into concert ticket prices.
We used the average ticket price from the Era’s tour based on the cost of a ticket from her show in the Bay Area last weekend. There are many stories of people paying much higher numbers, and some lucky individuals who paid less. The average resale price has been $1,605 so far according to SeatGeek! We used the federal minimum wage in our example, which is $7.25. Even if you use a state with high minimum wage, like Washington at almost $16, it still takes 57 hours of work to go see Tay Tay.
As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.
-Vivi & Shane
