As hairdressers and salon owners we invest most of our time developing our artistic skills. We seldom think of planning for our financial future.
In today’s tough economy, the cost of living will continue to escalate. It’s really not how much you earn that will determine your financial future; it’s what you do with your money.
I’ve listed a few important guidelines that will help you in the area of financial planning and financial independence:
1. Invest in creating value in your skills
If you want to stand above the crowd and gain that competitive edge, develop your communication and people skills, look and act like a professional and develop your competitive spirit. Challenge yourself every day towards self-improvement. Increased income will be your reward.
2. Don’t rely on others for your financial needs
Don’t put all your trust on your boyfriend/girlfriend or husband/wife for your financial security; you never know when you may have to go it alone. Work hard to invest in your skills and self-confidence to create a demand for your services.
3. Spend on education
The more you learn, the more you earn. When you increase your earning potential, you’ll be able to save more. A top professional will never be out of a job. You control your own destiny.
4. Set financial goals
Clearly define your financial goals, then work hard to make your goals it a reality. Opening a RRSP (Registered Retirement Savings Plan) is a good start.
5. Stay out of debt
Don’t spend money just to make you feel good. Make sure you stay out of credit card debt.
6. Learn about money
You work hard for your money, so make your money work hard for you. Learn the power of compounding interest. Learn how to invest your money, take classes on money management and financial planning Vanguard.com has an excellent retirement and money management program. Suze Orman also has valuable information as well.
7. Learn to budget
Monitor your spending habits. Do you really need to spend that $7 for a glass of wine? Before you spend your money, place a value on what you’re buying. You may want to save some of your tip money as a start. I have great respect for professionals who want a better life for themselves and family. Although this article is about money, don’t neglect your family and loved ones. Your challenge is to find that balance between working and family values.
Sadly, as hairdressers, many of us have no pensions, medical insurance or other benefits like other professions. Far too many of our colleagues are working paycheck to paycheck. Until changes are made, we must take full responsibility for our own financial future.
Jon Gonzalez is a business consultant, trainer & speaker to salon owners and hairdressers. Visit his blog for more free business tips.
Published with permission from Jon Gonzales. Gonzales is a business consultant, trainer & speaker to salon owners and hairdressers. Visit his blog for more free business tips: https://hcds4you.com