Ep 19 | How Hairstylists Can Retire Rich – Simple $100 Strategy

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Hey there, beauty bosses!

Today we're talking about something that might make you want to run and hide under your styling chair – investing. But don't worry, I've got an amazing guest, Brian A. Pablo, to break it down for us in a way that actually makes sense.

As beauty professionals, we're used to investing in our skills, our tools, and our businesses. But what about investing in our financial future? Let's dive into some smart strategies that'll help you secure your future without giving up your daily latte (because let's face it, we need that caffeine!).

The Beauty Pro Advantage: Flexible Finances for a Fabulous Future

Being a beauty pro is all about flexibility – flexible hours, flexible styles, and guess what? Flexible finances too! Brian says this flexibility is actually a superpower when it comes to investing. Here's why:

• You can choose investments that fit your unique goals (like that dream salon you've been planning)

• You can adjust how much you invest based on how booked and blessed you are that month

• You can take advantage of some pretty sweet tax-efficient retirement accounts

Pro Tip: Use your flexibility to create a financial plan that's as unique as your signature hair color formula!

Start Small, Dream Big: The Magic of Consistent Investing

Okay, I know what you're thinking. "Bex, I can barely afford new hair shears, how am I supposed to invest?" Well, my glam squad, Brian dropped this little truth bomb that blew my mind:

"If you invest just $100 a month for 40 years, assuming a 10% average annual return, you could end up with over $560,000. It's not about how much you start with, but the consistency and time in the market that makes the difference."

That's right – the price of a good set of hair extensions could set you up for a fabulous retirement!

Action Step: Set up an automatic transfer to your investment account every month. Even if it's just the cost of one blowout, it'll add up!

Diversify Your Money 'Buckets'

Just like you need different products for different hair types, you need different 'buckets' for your money. Brian suggests these three:

1. Emergency Fund: For those times when your flat iron decides to quit on you

2. Retirement Savings: So you can sip margaritas on the beach instead of working until you're 80

3. Business Growth: To fund that salon expansion or those advanced classes you've been eyeing

Quick Tip: Try to add a little to each bucket regularly. It's like doing a root touch-up – a little maintenance goes a long way!

Tax-Savvy Retirement Accounts

As self-employed beauty pros, we have access to some pretty sweet retirement accounts that can help us save on taxes. Some options include:

• Solo 401(k)

• SEP IRA

• Simple IRA

Brian says, "It's important to understand the tax implications and rules for each account type. This knowledge helps you make informed decisions that align with your specific needs."

Action Step: Do a little research on these accounts or chat with a financial advisor. It's like learning about a new hair color line – a bit of education can make a big difference!

Don't Forget About Insurance

I know, I know – insurance isn't exactly a thrilling topic. But neither is sunscreen, and we all know how important that is! Brian emphasizes that life insurance is particularly crucial for self-employed beauty pros.

"Life insurance isn't just about you. It's about protecting your family and your business. And it's more affordable than most people think, especially if you start young."

Key Point: Look into term life insurance. It's an affordable way to make sure your loved ones are taken care of, no matter what.

Invest in Your Skills
(Because You're Worth It)

As beauty pros, one of our best investments is in ourselves. This could mean:

• Upgrading your tools (hello, new hair dryer!)

• Taking advanced classes or getting new certifications

• Hiring an assistant to free up your time for more clients

Investing in yourself can lead to more income, which means more money to invest in your future. It's a beautiful cycle!

Action Step: Set aside a portion of your income for education and business improvement. Your future self will thank you!

Stay Flexible

Our industry is always changing, and our financial plans should be able to change too. Brian suggests, "Treat your financial plan like a business plan. Review it at least annually and make adjustments as needed."

This lets you:

• Adapt to changes in your business or personal life

• Take advantage of new investment opportunities

• Make sure you're on track to meet your long-term goals

Key Takeaway: Schedule an annual financial review. It's like deep conditioning for your money!

Conclusion: You've Got This, Beauty Boss!

As beauty professionals, we have the power to shape not just great hairstyles, but our financial futures too. By using these smart investing strategies, you can build a strong financial foundation that supports both your business and personal dreams. Remember:

1. Start investing early, even if it's small amounts

2. Diversify your investments across different 'buckets'

3. Use tax-advantaged retirement accounts

4. Protect your future with insurance

5. Keep investing in your skills and business

6. Stay flexible and review your strategy regularly

With these strategies, you'll be setting yourself up for a future that's as bright as your highlight game!

About Our Guest Expert:

Brian A. Pablo is a Chartered Financial Consultant and Retirement Income Certified Professional with over 15 years of experience. He's helped start businesses in various industries and currently owns two. Brian's goal is to form trusting, long-term relationships with clients, serving as their personal financial coach. His team's vision is to educate people, allowing them to make informed decisions that make sense for their specific needs.

If you want to chat more about your financial future, you can reach Brian at:

• Phone: 512.640.9196 (Cell) | 512.346.0900 (Office)

• Email: BaPablo@firstcommand.com

• Website: advisor.firstcommand.com/us/tx/austin/bapablo