A New Year is an excellent time to develop an action plan for securing your financial independence and financial planning. I think you’ll all agree that the cost of living keeps escalating, and with the way things are going, you may have to wait to retire until age 70 before claiming social security benefits.
Another challenge that’s confronting hairdressers is the rising costs of medical insurance. Let this serve as a warning sign and red flag to everyone in the beauty profession—it’s time to start planning for your own financial security.
Unfortunately, most hairdressers will focus so much of their time and attention towards developing their artistic and technical skills that they fail to plan for their own financial security.
Statistics clearly show that most of our hairdresser’s standard of living is unable to keep pace with the rising cost of living. Sadly, most hairdressers have no meaningful health insurance, vacation pay, or retirement benefits. Most live from week to week walking on a financial tightrope.
How many of you can afford to miss work for a period of time due to unforeseen circumstances and still maintain your current lifestyle? I know this is not a popular topic to discuss…many of you would rather be having fun at a hair show with all the glitter and hype.
Whether you’re just starting your career, or have many years of experience, it is never too late to start planning for your own financial security and retirement. I think you will agree that in these difficult and uncertain times, hairdressers are vulnerable to financial uncertainty.
Compounding your financial challenges, competition will continue to grow. By formulating a plan of action now, you’ll decrease stress in the future and be ready for unforeseen circumstances.
Despite these obstacles, I believe there’s never been a better opportunity for hairdressers to stand above the crowd, and take control of their own future. Sadly, most hairdressers feel they cannot take the time, effort, and sacrifice it takes to succeed for one reason or another. Most are always making excuses to fail. Most hairdressers in our profession are in denial and will stay in their comfort zone. But as hairdressers and salon owners you can stand out by not giving up, by putting in a 110% effort, by encouraging your team to strive for excellence as hairdressers.
The following guide lines will help you start on the path to financial independence and financial planning.
Create Value in Your Self and in Your Skills — Invest in gaining knowledge. Always keep learning! The more you learn, the more you earn. The more you earn, the more you’ll be able to save and invest. Take the time to read books, follow blogs, and study articles about maintaining your business. acquiring financial security will be one of my topics at both my salon owners seminar and seminar for hairdressers.
Discipline Yourself on How to Save Your Money — Get in the habit of saving your money, and before you purchase something, ask yourself: Can I afford it? You’ll find that even saving $5 a day by making coffee at home can greatly increase your savings over time! Save your tips, and bring a lunch to work. These little efforts to save here and there will add it up. It’s amazing how much money you can save when you only buy what you need.
Stay Out of Debt, Especially Credit Card Debt — There are many resources that will help you how to avoid debt, but it’s incredibly important that you avoid credit card debt. No matter what, if you can’t afford it, don’t buy it!
Invest Your Money — You work hard for your money, so make your money work hard for you. Learn to save and invest your money. Learn the power of compounding interests.
Open Your Own I.R.A or Roth Retirement Account — Take advantage of tax savings that offers you a great opportunity to start your own retirement income stream with the help of the government.
Avoid job Change — Every time you make a job change you start all over, there’s no guarantee your new job will be any better. Moreover, job hunting is incredibly difficult right now so if you’re unhappy with your work environment, talk to your boss and find a solution. Job change can also affect your credit rating as well. If you’re good, people will find you. Referrals will be your key barometer of how well you’re performing.
As painful as it is, we sometimes have to look in the mirror if we are not as busy as we would like to be.
Set Financial Goals — In today’s rapidly changing and uncertain economy, it is becoming more and more crucial to start planning for your financial future— Start now,the sooner the better. Make your goals realistic and reachable. Set small goals, and when you’ve reached those goals, set new ones.
Educate yourself about money,money management, and financial planning.
I was able to retire financially independent and debt free because I discovered how to grow a nest egg at an early age. The principles I’ve listed above have worked for me, so I know they will work for you. Sometimes you have to have the courage to think outside the box by learning on your own. Achieving financial security will be one of my topics at my two day business seminar in Las Vegas.
I urge you to learn about money management and financial planning. With a lot of self discipline and knowledge about money, you can and will control your own financial future. No matter how little you have in your bank account, now’s the time to begin planning your own financial security.