Issue link: https://www.ahpindiestylist.com/i/1511260
62 indie stylist Volume 4 Issue 2 investing in your future, and the sooner you do, the more you'll make thanks to compounding interest (where your interest earns interest). If you're well into your career and you haven't begun investing yet, don't feel like it's too late. "When it comes to money growth and investments, starting early is best, starting now is better than later, and starting later is better than never," Manukyan says. Several savings, retirement, and investment account options are available—including a Roth IRA, 401(k), or SEP IRA—depending on what makes sense for you and your business. But if you're unsure about where to start, seek out professional advice from a company like Vanguard or Fidelity. If you open an IRA, the recommendation is to try to max it out (the amount changes every year, but it's currently around $7,000). However, this can be hard if you're first starting out in your career. No matter what kind of account you have, try to set aside however much you can, even if it's only $25 per month. The goal is to get into a good habit of saving. more business and/or charge more for your services. Set goals and hustle to meet them. Consider how much money you need or want to make and then determine what that looks like in terms of the number of clients you have and what each client spends. Optional: If possible, hire a certified public accountant (CPA) who can manage your money for you. A CPA can even set you up with a tax- advantaged business structure so you're paying less in taxes and strategizing your business well. The fee may run between $150 and $1,000 a month, depending on how big your business is. You may find this amount is a drop in the bucket compared to how much they can save you in terms of actual finances and finance-related headaches. Step 2: Secure Disability Insurance Disability insurance is important if an accident occurs and you're unable to work. "You want to protect your income if you get hurt," Manukyan says. "We work in an industry that is reliant on our physical ability. You should also increase your insurance coverage as you start to make more money." If something happens, disability insurance will pay a portion of your monthly income to ensure you're still being paid while you recover. This even covers things like maternity leave. (Note that disability insurance must be secured before you need the insurance— or find out you're pregnant, in the latter case.) Step 3: Create an Emergency Fund Every individual should have an emergency fund that has enough money in the event of an emergency expense or a slow month. Aim for 3–6 months' worth of expenses to cover you and your business. This cushion will provide you with peace of mind and keep you afloat if business gets shaky. Step 4: Plan for the Future Set yourself up for success by keeping the endgame in mind; making regular contributions to a retirement savings over time can have a huge impact later in your career, especially as you wind down your business and/or prepare to retire. People with "traditional" jobs are typically offered retirement 401(k) plans through their employer, but those who are self-employed don't receive the same. It's important to begin