![]() Here are two types of retirement accounts that may work for you. It’s important to consider some options now-even if retirement seems a long way off. In the beauty industry, it seems that retirement planning isn’t at the top of the priority list. Once you have a cushion built up, you won’t have to panic when unexpected expenses arise. Choose the amount that makes you feel secure. This is when saving for an emergency fund is key. Your tires on your car are completely bald. Let’s face it, unexpected expenses will happen. Include a Financial Cushion when Budgeting ![]() It may take a little time and practice, but after a few months, it will become second nature. Whichever tracking system you use, it has to work for you. Jordan Page has a YouTube video titled “Simplest Budgeting Method EVER! Envelope Budgeting You’ve Never Seen.” This video offers basic common sense and has helped a lot of people develop their spending plan to stay within their budget. It’s called “envelope budgeting.” The first step is to put your credit cards in your sock drawer and start living on a cash only basis. You may be thinking, “I’m a hairstylist, not an accountant.” If you shy away from using an app, there is another way. Just Google “best budgeting apps” to find a tracker that works for you. Budgeting apps act as a money manager for your personal finances, and there are applications for your computer or cell phone. I know this sounds like real work, but dig deep and find the will and determination to try something new-a strategy is crucial to successful budgeting.Īs we know, today there are apps for everything! If you love using apps, there are numerous choices you can download for free. The next step is choosing a budgeting tracking system. Some of these expenses may not apply to you, but there may be other expenses you will need to add, such as pet care, adding to your art collection, or upcoming trips you are planning. Personal items (toilet paper, shampoo, make-up, etc.).Below are some ideas of different expense categories, but you can modify these to work for you. You can create your own spreadsheet or search online for one that suits your needs. ![]() As a hairdresser, you work hard for your money, so you want to direct it to the right places.īegin with the major expenses, then drill it down. Budgeting isn’t supposed to make you feel guilty, but rather to give you the knowledge of where your money is going each month so that you can feel good about the choices you are making. Taking an honest look at your expenses may be surprising. Include all sources of income-full-time jobs, second jobs, freelance pay, etc. Write down your total income for the month after taxes. Do your best to estimate your monthly income and after a few months of budgeting, you’ll have more accurate numbers. Your client appointments probably vary from week to week, and your retail sales will also fluctuate. If you’re an independent hairdresser or barber, it may not be as cut and dried. If you’re an employee, keeping track of your total income for the month should be fairly simple. When creating a simple budget, you’ll categorize your income and expenses, then explore a system for tracking them. Being aware of your cash flow can keep you from pulling out the credit card It also helps you develop a plan for saving and investing- something we don’t think much about in the beauty profession. You’ll know whether you can afford that amazing Coach bag or you’ll be eating mac and cheese for the next week. When you have a budget and know where your money needs to go and how much is left over, it gives you confidence and provides financial freedom. If so, good for you! But if your budgeting skills could use some TLC, read on. You might be on top of your game and already have a budgeting strategy that works for you. We love to plan our weekends, what we’ll eat for dinner, or what we’ll wear tomorrow, so balancing the amount we spend versus the amount we earn seems like an unwelcome chore. Most hairdressers don’t find the idea of planning a budget an exciting way to spend your free time.
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