In my forty-five years behind the chair, I’ve seen first-hand how salon professionals misuse money. The Thrifty Cosmetologist is a program to assist you in keeping more of your hard-earned dollars. Let’s talk about money: how to make it, spend it, save it and make the most. And one day, how to retire successfully.
How you feel about money is hardwired into your mind from messages you heard growing up and peer pressure. I had no idea where money came from or how to manage it. I just went along doing what everybody else was doing, thinking this must be the way.
One day, I made an appointment to prepare my taxes. The accountant quickly saw I was misusing my money and said, “Until you choose to understand your money, it won’t matter how much money you make; it will never be enough.” I had no idea what he meant. I slowly started following his advice, and eventually, he proved himself 100% right.
If you are busy making money, paying your bills, and staying afloat, what could be wrong? The best answer is a brief story that repeats in salons all over the country. Meet Alyssa.
Alyssa, like most of us, paid for her school with financial aid. As a student, she charged some of her expenses on a credit card. Alyssa graduated with $15,000 on her student loan and $1,800 on her credit cards. Still, she felt this was OK because she would now start her job and pay it off.
Her first job didn’t cover monthly expenses. So, she charged a few more expenses on her credit cards. After a year of working, Alyssa still owed them a $15,000 student loan with a $104-month payment. (takes 15 years to pay off with a total of $3,206 in interest). And $5500 on her credit card with a minimum amount of $74 (takes 18 years to pay off with a total of $ 9,774). Triple what she borrowed.
One day on a hiking trip, Alyssa hurt her foot, she thought it sprained, but it was broken. She didn’t work for the next six weeks and then only a couple of hours a day. She went through her savings, she maxed out her credit cards, and then fell behind on her monthly expenses--this is when Alyssa called me.
Unfortunately, it took a bad experience for Alyssa to understand the difference between making money and building wealth. Regardless of Alyssa’s income, she was living paycheck to paycheck. If one paycheck fails, she needs to borrow money and begin building debt. The chances of a money emergency are very real for us all. Within the past year, 28% of people experienced a financial emergency. That’s one out of every three of us.
I invite you to join me every month to learn more about how to make the most of your money. What will you learn in the coming months if you follow The Thrifty Cosmetologist?
- Where your money goes
- How to choose between needs, wants
- To look after your needs first
- Difference between making money & wealth building.
- The Tiny Steps to saving and building wealth
- How to diversify your income
- How to control your spending
- How to pay off the money you owe
- How to start creating your rainy-day fund
- The 30-day Thrifty Challenge
I write from my personal experience. Check with your financial planner before you implement ideas from the Thrifty Cosmetologist.
Carlos Valenzuela is a Hairdresser, author, personal development coach, ex-salon & beauty school owner. His focus is guiding salon professionals to a more fulfilling career & lifestyle. visit carlos-valenzuela.com email: firstname.lastname@example.org