One of my clients thought he would never be able to retire, until we did two things. We created a vision session he could repeat every night before bed, and we opened a retirement account with one revenue stream directed straight into it. I will show you exactly how to do both in this retirement series, and it starts with this issue.
In issue 10, I asked you to start talking to your clients about retirement. Did you? If so, I'm curious about what it felt like. If not, I'm curious as to what held you back. These are the kind of things we'll talk about in the Prosperous Barber Forum. In this issue I'll talk about what holds barbers back from planning for retirement and tell you what I plan to do about it.
My goal this week:
- Bring awareness to the problem.
- Talk about why the problem is a problem that's becoming bigger.
- Then I'll explain what I plan to do to help barbers overcome the problem.
I'm showing you this because once you have awareness and I map out the solution you'll likely want to take action. But the only way you will do that is if you feel like you can accomplish the goal. This is the beginning of a series that will walk you through the steps to accomplish the goal.
Mental Health System
"Retirement is not tomorrow, I have time to figure that out." That's what you've been telling yourself. Stop this now. It's about to make a fixable problem worse.
The problem is, in your mind, you're putting off retirement planning because it's too overwhelming to think about. You tell yourself that you have time and you think you are pushing it back to a time when it won't feel so overwhelming. But that time doesn't exist, especially if you keep pushing back the start date.
Retirement is an undertaking. That's why financial planners exist, so you don't have to do it by yourself. If you plan it one step at a time, it will become more attainable, and instead of pushing it off, you'll be looking forward to it.
Right now you do have some time, but not the amount of time you think you do. That's why you have that worried feeling. That's why when you hear others talk about retirement, you get jealous, nervous, doubtful, and even sad.
The good news is there is something you can do, and I'll prove it to you throughout this series.
My question to you is: when you think about retirement today, what does it feel like? Using three adjectives, describe your feelings about retirement. You can use adjectives like scary, unbelievable, peaceful, boring, etc.
Money System
I define the Money Cycle as Earn, Grow, Protect, Gift, and Enjoy your money. How you navigate the Money Cycle will determine your lifestyle today. It will also determine your ability to save for retirement and actually retire in the future.
Retirement planning falls under the Grow and also the Protect part of the Money Cycle. I will talk more about this in the upcoming weeks. The first thing I'll explain to you in the Business System section is why it is important to increase your revenue. You'll need an account that is specifically set aside for retirement savings, and it is my professional opinion that you designate a specific revenue stream whose primary job is funding retirement.
I will walk you through the exact line of thinking you'll need to have in order to change your behavior and put more effort toward planning for retirement. In most cases we know what to do, we just choose not to do it. Like we know we should eat healthy and exercise, but few execute this lifestyle properly.
However, when it comes to retirement planning, you may have a clue, but you probably don't know exactly what to do in order to set yourself up for retirement. This is exactly what I plan to walk you through: what your money's job is, what your job is, and what part your clients play in helping you reach your goal.
But before I show you all of that, you'll need to start visualizing your retirement. I asked you how the thought of it made you feel and you came up with three words. Now, allow your brain to run wild. No thinking, this time imagine. Don't become restrictive or limited. I don't want you to go Instagram wild though. You don't need a lambo to retire comfortably, you probably don't really want lambo problems.
Visualize the people who are important to you, the interests you would like to explore, the activities you love doing, and even the things you would like to have, not the ones you are copying from The Gram, the ones you have been thinking about since you were ten years old. Go there!
But if you have trouble visualizing, I have a gift for you. It's this week's Less Than 30 offer, it's called Visualize Your Prosperous Life, and it's my favorite place for barbers to start when we work together.
It's less than $30, and takes less than 30 minutes to complete. Here's the link.
Business System
Each account should have a goal, and at this point in your life, each revenue stream needs to have a goal too. Believe it or not, my clients who earn two to three million dollars a year are planning their retirement the exact same way. They often use their profit to give employees bonuses and also to fund the employee retirement plan. This also protects them against paying too much in taxes by lowering their taxable revenue. You can run your $150,000 barber business similarly.
In this section, throughout the retirement series, I'm going to give you an action step that helps you get closer to retirement. If you follow the steps, by the end of the series you will not only have a clear vision for retirement, you will also have a clear plan. Then you can decide who you want to work with to help you execute the plan and bring your vision to life.
The first step in directing a revenue stream to retirement is having a revenue stream you can do that with. Your main revenue stream is your haircut and other upsell services like beard trim. It's likely that this is covering your current lifestyle. As I've been saying for a few weeks, it might be time to raise your prices, even if it is just by five to ten dollars. If you cut 40 clients a week and raise your prices $10, that's an additional $1,600 a month. Having these price increase conversations might make you uncomfortable, but it will get easier as you have them.
The other option is to create an additional revenue stream in your business, a vending machine inside your shop, grooming products, specialty items, or add-ons like an automatic chair massage. Get creative. I like revenue streams that you can pay for once and get paid many times over, like the automatic massage chair. You can direct all the revenue from this additional income stream directly to your retirement account. (Please note, restrictions may apply depending on tax laws, so consult with an accountant or financial advisor when setting this up.)
This is just the beginning. There is more to explain, and I've only scratched the surface. Next week we will talk more about your vision and even look deeper at the numbers. We will address your hesitation and the stress it is causing.
So share this issue with a barber you respect, and if this was referred to you, be sure to subscribe so you get the entire series.
Did You Know?
The average barber career in America spans 20 to 30 years of active cutting. The highest-earning decade is typically between 35 and 50, when reputation is built and physical capacity is still high. That window is the exact window in which retirement wealth is built or missed. The majority of barbers currently in that window have not started a dedicated retirement account.
I'm guessing you already knew this, or maybe you thought you were the only one who didn't. Or maybe you are the only barber you know who does. Either way, let's all help each other. We can all be Prosperous Barbers now and in retirement.
From the Chair
Everything you need is here! One link, all the resources, click here!
While you're in the chair this week waiting on your next client, be sure to:
- You're subscribed to the Prosperous Barber Journal. Click here
- You've shared this journal issue with a barber in your circle.
- Answer the questions and try the exercises above.
- Watch the current episode of the "Build In Public" podcast series. The link is below.
- Explore this week's Less Than 30 option. Each week we offer a session that takes less than 30 minutes and costs less than $30. You'll be pleasantly surprised, it's a major gift to you. Check it out!
Everything you need is here! One link, all the resources, click here!
This episode of the Build In Public podcast is part personal and part professional. I talk about how I juggled work, fun, and family while in the US, and about how I will be creating the Price Increase product. Check it out and subscribe while you're there.
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If this issue made you think of someone, forward it. You probably know at least one barber who needs it. And if you aren't yet subscribed, make it official: prosperousbarber.com/journal
See you sooner. Love you muchly. Kiné
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