How Much Should Hair Salon Owners Be Saving for Retirement?

E17: How Much Should Hair Salon Owners Save for Retirement?

In this episode, Brett shares his rules of thumb for saving for retirement at any age–and how to catch up if you’re behind.

I’m sure you won’t be surprised to hear me say that some of us don’t like to think about our money or our finances or savings all that much. Because mostly when we do think about it, we’re actually just telling ourselves not to worry about it. The problem though is that we do worry about it, don’t we?

But really, the question you’re trying to answer when you worry about money is, “Am I okay?”

It’s the same as when you go to a doctor and ask, “What is this bump on my arm?” You want the answer to that, but what you really want is for the doctor to say that you’re okay.

So, we have this neat way of doing things like that as humans. And in my profession as a financial planner, I hear it every day from hair salon owner clients when it comes to their retirement savings. Rather than just giving them a whole lot of numbers, they just want to know, “Am I okay? Will I have enough?” Any of these thoughts or questions sound familiar to you?

So today I want to talk about saving for retirement.

Have you saved enough for your retirement? And where are you on that?

I’m actually going to give you some tangible numbers or averages of where you should be relative to your age and how much money you’d like to have when you’re retired. So, let’s jump into that.

Episode Highlights

[03:22] Rules of thumb for saving for retirement at ages 30 through 65.  

[05:58] The power of compounding and why it helps to start saving as early as possible.

[07:45] Why hair salon owners should target a 15% savings rate.

[09:56] When to start taking Social Security benefits to maximize your retirement income.

[13:06] How to catch up if you’re behind on saving for retirement.

Looking for more tips for how to grow, scale, and ultimately sell your hair salon business? Check out our other Unchained From the Chair podcast episodes.

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