Sometimes we find that as we make more money, we somehow forget how to manage the money that we earn. This can be an expensive ‘memory lapse’, leading to scrounging around to make ends meet and the stress that comes along with it.
Managing money is an essential skill that everyone needs to learn. Unfortunately, such knowledge is not a part of traditional education, so we usually end up figuring it out on our own.
As a stylist (and essentially, an entrepreneur), it turns out to be a more difficult task unless you’ve established a loyal, consistent clientele. Most of the work that stylists do depends on the client and season. Even if you do have a constant source of income, managing money often gets lost in the shuffle of life. The idea of saving up gets lost between paying off dues, student loans, advanced education, and investing in your tools and products.
Most experienced stylists tend to advise stylists who are just beginning their careers to mindfully plan for the future as they are starting and making money. Stylists need to take a stand and decide never to live paycheck-to-paycheck. We’ve put together a few tips that could make money management a more natural and seamless task:
Set aside some money and save it.
According to www.makingsenseofcents.com, only 30% of American households have a long-term financial plan. Start somewhere, setting aside at least ten percent of your weekly earnings in a secure savings account. Visit your bank and open up a retirement fund. You can choose a simple IRA with a minimum of $50 or less per month. All the contributions you make to an IRA are non-taxable. This way, you can keep some of your hard-earned money aside for yourself and your future.
Establish a cost-effective way to align your product inventory.
Did you know that approximately 80% of your revenue comes from small and straightforward retouches, such as gray coverage, and basic haircuts? So, do not indulge in purchasing products that you may or may not need. Give careful consideration to how you can operate effectively with a leaner inventory.
Make purchase decisions based on your requirements.
In the fashion industry, there is constant change and a rush of new styling products, colors, and tools that are introduced every season. Who could resist?! Don’t buy into it, unless it fits your aesthetic. Resist the temptation to impulsively buy products simply because they are “the latest”.
Increase your rates, as appropriate.
You might think that it is counterintuitive to try and create more business by charging more, but that isn’t true. The clientele you receive have expectations on how they need to be serviced so you can use a higher price point to set yourself apart from other competition and create an air of exclusivity.
Identify your niche and take advantage of it.
Once you've identified your aesthetic, you should create an environment & cultivate your skills to attract the type of clients that fit your niche. From refining your image to thoughtfully choosing the work that you publish on your professional social media, keep in mind what you want to do more of and showcase it. Honing in on your target market helps to build the reliable client base needed for more financial stability.
Start wherever you are in your career to give money some of your focus and begin developing habits that lead to a healthy relationship with your finances. With a bit of time and effort, you’ll soon find yourself admiring how you’ve made such a big difference in your life, changing your outlook, confidence, and sense of security. That’s a pretty big deal!