As a technician in the beauty industry, you work hard to build a full book of great people that you serve. You also work harder to retain them as long-term customers. For all the hard work it is an interesting stigma that so many technicians must work way more years than their bodies (and brains lol) want them too.
For all the hard work put into building a successful career it is equally important to build a strong financial nest egg, yet most technicians fail to plan for retirement.
From my perspective as a coach, you can create an amazing lifestyle for yourself if you make the right moves. And it is never too late to start! Here are 3 steps you can take to make your financial dreams come true!
- Save your tips! Learn to live without them. This can have a significant impact on your financial future. If you bring in $1,000 a week in service sales and average 20% in tips that is $200 a week. This means that if you work a 50-week year that you can save a potential $10,000 annually. That’s $300,000 if you work 30 years! You can take $6,500 a year and invest it in an IRA that can help you lower your taxable income and earn interest that makes the investment skyrocket!
- Save your retail commission! If you get paid a retail commission, then it behooves you to save 100% of it. If you are doing that same $1,000 a week in service sales and your retail to service percentage is 20% that means you are selling $200 a week in retail. That adds up to $10,000 a year in retail. If you get (or wisely choose to save if you are an independent technician) 10% commission that adds up to another $1,000 saved for the year!
- Save your Add On income! Keep the commission you make from any add on treatment that wasn’t scheduled on a given week. If you focus on this not only, will it support you in addition to treatments that are relevant for your clients, but it will also create a larger amount of money in your bank account in the years ahead. If you do that same $1,000 a week in service sales and add on an additional 15% that’s $150 more each week which is $7,500 more in sales volume over a 50-week work year. If you make 45% of that then you just added another $3,375 into your bank account.
What’s next? Do the math! Gather your data and see what your trends are so you can create goals based on your current data. Project for the next 12 months what you can expect to save based on the 3 equations above. Then, make an appointment with a financial advisor to make a plan for how you will invest your savings and build your nest egg. You can make this happen and take the steps today to create the type of abundance you deserve for a career of hard work serving your community! You owe it to yourself!