Having money set aside for retirement is a major part of living a stress-free life. Unfortunately, many hairdressers are self-employed or work for small salons that aren’t able to offer retirement benefits.
If you're a stylist, can you still plan for your future?
Fortunately, you can. Here are five vital steps for creating a comfortable retirement as a hairdresser.
1. Establish A Savings Account
This should be a no-brainer, but many adults fail to open savings accounts. Savings accounts are beneficial for three main reasons:
Once you’ve established your savings account, it’s important to handle it well. Start by determining how much you can afford to put in it each month.
If you can, have your clients pay in checks. You can then deposit these checks directly into your count for ease of access.
2. Work To Pay Off Debt
Student loans draining your bank account? Or maybe you bought a new car on a whim and are now regretting the payments. Whatever the case, debt is the no.1 contributor to poverty.
Before you can begin saving for retirement, it’s crucial to pay off as much debt as possible. Yes, it may delay your retirement fund for a couple of years, but think of it as a necessary part of the process.
When you have little to no debt, you can save and invest even more for the future.
3. Invest Safely With An IRA
Some salons offer 401K programs or other retirement plans, but many don’t. If yours doesn’t, or if you’re self-employed, it’s important to invest in your own plan.
Investing can be scary, especially when you work for yourself. You don’t want your hard-earned money being flushed down the toilet. The good news is that investment accounts vary in risk level.
With the right IRA (Individual Retirement Account), you can take on low-risk investments that make money slowly and steadily. Even better? When you have an IRA, you qualify for tax breaks that help you save even more money.
4. Seek Out Professionals
Finances can be overwhelming. Whether you’re stuck in debt with no end in sight, or you want to learn which type of IRA is right for you, speaking with a financial advisor can help.
In addition to meeting personally with a professional, you can browse the internet for classes and programs offered by well-qualified experts.
5. Get Started Now
The most important thing to remember about planning for retirement is that it’s never too early—or too late—to start. No matter where you are in your hair stylist journey, implement these steps now and look forward to a bright future.
Are you ready to prepare for your future as a stylist? Enroll in the Associate Program at The Salon by Lora Brown.
Lora Brown is a master stylist and the owner of The Salon by Lora Brown. She has worked in the salon industry for 30 years.