“If you think nobody cares if you’re alive, try missing two car payments.”

I know this is not a popular topic for hairdressers and salon owners, but it is a topic we all should pay more attention too, especially in today’s difficult and uncertain economy.

Most hairdressers and salon owners have no pensions, health insurance or a benefits package like other professions, in fact far too many of our colleagues live on a financial tight rope.

Staying out of debt is the first step towards saving for your retirement as well as helping  you take the stress out of worrying about your money challenges.

Although I address salon owners and hairdressers, this topic t is also helpful to nail techs, skin care, massage therapists,  and  everyone who works in the beauty profession.

As you are well aware the cost of living continues to escalate, all you have to do is look at your bills. Gas prices continue to rise. It seems everywhere we turn fees are always added on to anything we buy and of course taxes will continue to rise, eligibility to get your social security will probably rise to 70.

Sadly many of our hairdressers work from paycheck to paycheck just to keep pace with the high cost of living.  Many salon owners  worry about  keeping up with rising business costs, not to mention plan for their retirement.

Are you depending on living off your credit card?

Are combating  credit card debt?

Are you able to save a little money for your retirement? Are you falling behind on paying your bills?

Despite these challenges, you can overcome these obstacles by starting to plan for your future financial security by monitoring your finances with a plan.

Follow these tips with an open mind:

Evaluate Your Spending – not just your rent or car payment but also your leisure spending as well. Review your spending for 2012, what you earned and what you spent. For a month just jot down every expenditure and write down on a little note pad.

Credit Card– are you paying more than the minimum on your credit card? Make sure you pay off your credit card as soon as possible.

Credit Score – you’re allowed one free credit card score per year, make sure you know a credit score score.

Stay Out of Debt – the more you allow your debt to grow, the more financial pain in your future.

More Income – this is one of the few professions I know where you can get all the overtime you want once you create a demand for your services. Take the extra money and pay off your highest interest debt, probably your credit card.

Invest in Knowledge – very simple, the more you learn, the more you earn.

Self-Discipline – it takes a lot of self-discipline to stay out of debt and save your money. Spend your money wisely; was that $7.00 drink worth it? Do you really need your latte every morning? Do you set your tips aside to pay off your debts or save for a rainy day?

As we start a new year, this is the perfect time to put your financial plan in action. Always remember this; it’s not how much you earn, it’s what you do with what you earn that will determines your financial success or failure.. Learn money management and financial planning, you will thank me years from now.

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