It is always about the money. Establishing good money management habits early on in your career will help you have the money you need, and then some. Here are my top five tips for managing money in the pro beauty industry:
Keep good records – Record daily sales and tips yourself even if an employer tracks them for you. Have your own records to keep yourself accountable.
Track and report all tip income – Stay on the right side of the law from the start. Be sure to set aside a portion of your tip income to cover the taxes you must pay on it.
Pay yourself first – Before you pay the bills and pay others, set aside some savings for you. Start small with what you can afford. Begin a 401K or other savings tool.
Every time you get a raise, set aside a part (or the entire raise) and live as you were living on the old income. You will be amazed at how fast your savings will grow.
Divvy your tips – Tip income feels like free money. However, it is not free. It’s real money and it adds up really fast. So, try this. Sort tip cash into piles: one for the tax man, one for savings, one for a rainy day, one for vacation, and one for your pocket for spending.
If you take this money out of your pocket or purse and give it a true purpose, you will spend it a lot slower. Set up other piles as your savings and spending needs dictate.
Pay off debt – Double down on clearing student loans, credit cards, or other debt. The sooner you rid yourself of these, the faster you can begin to save for your future.