Yesterday (Thursday, August 18), I had the pleasure of speaking to a cosmetology business class at Remington College in Mobile AL. When extended the offer by my good friend and client, Tina Rankins, I began to think about what I could say to this group that they hadn’t heard before.
I chose to center my presentation around the concept of beginning with the end in mind. How many of you wish that when you were in school someone challenged you to begin your career with the end (retirement) in mind? Imagine how differently you would have made some of your decisions, especially around spending and saving.
Many cosmetologist, whether they go to work in a salon or open their own business, must master the entrepreneurial mindset because the majority of them will not have a company providing benefits such as insurance and retirement plans for them. Following the presentation, I felt blessed that many of the students approached me and were thankful to me for opening their eyes about what the future will hold for them in the industry beyond seeking and attaining employment.
How many of you are working with the end in mind? As an entrepreneur or someone wanting to become an entrepreneur, have you considered how much money you need to be making and saving in order to retire at some point?
Consider this – if you work for an average of 40 years (20-60) at an average salary of $25,000 per year; $1,000,000 will pass through your hands. Obviously, some of this money will be spent on taxes, insurance, bills, etc but what will happen to the rest of it? If your plan is to retire at 60 and you live until the age of 80 on an income of $25,000 per year; you will need $500,000 to retire and stay retired. With the uncertainty in our current economy, I would not advise that you depend on Social Security as a part of your retirement plan. So what will you do to ensure you can retire and stay retired?
Side note: I would like to extend an extra special thank you to the students for spending the afternoon pampering me. The college offers discounted hair, nail, waxing and facial services by the students. The prices are sooo affordable and they accept appointments. If you’re trying to stay fresh on a budget (men and women), contact your local Remington College.