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March Blog: Financial Planning 101 for Estheticians - Part Three: Paying off high interest debt

Let's explore the basics of financial planning. This week concludes the series with strategies for paying off high-interest debt.

The Basics of Financial Planning for Estheticians

  1. Identifying your financial goals

  2. Creating a budget

  3. Open a business checking and savings account

  4. Building an emergency fund

  5. Paying off high-interest debt

Paying off High Interest Debt

Paying off high-interest debt is an important financial goal to achieve financial wellness, freedom and stability. Here are some effective strategies for you to tackle high-interest debt:

  1. Prioritize High-Interest Debt: Make a list of all your debts, prioritizing those with the highest interest rates. Focus on paying off these high-interest debts first while making minimum payments on other debts. You may also pay off the lowest amount then proceed to the higher amounts for a sense of accomplishment. This strategy, known as the debt avalanche method, helps minimize the total interest paid over time.

  2. Increase Income: Explore opportunities to increase your income. As an esthetician, you can take on additional clients, offer new services, offer training to other Estheticians in your area of expertise, become a retail Affiliate, or find part-time work. Allocating extra income towards debt repayment can accelerate the payoff process.

  3. Reduce Expenses: Review your expenses and identify areas where you can cut back or eliminate non-essential spending. This might include selling unused equipment, canceling subscription services, reducing back bar products. Redirect the savings towards debt repayment.

  4. Use Windfalls Wisely: If you receive any unexpected windfalls, such as tax refunds, tips, or refunds, resist the temptation to splurge. Instead, allocate these funds towards paying off high-interest debt. Windfalls can significantly boost your debt repayment progress and shorten the payoff timeline.

  5. Stay Motivated and Persistent: Paying off high-interest debt requires discipline and persistence. Stay motivated by tracking your progress, celebrating milestones, and visualizing the financial freedom you'll achieve once the debt is paid off. Stay focused on your goal, even when faced with setbacks or challenges.

By implementing these strategies and staying committed to your debt repayment plan, you can effectively pay off high-interest debt and work towards achieving financial freedom.

I hope these tips are helpful to support your financial goals! Take the poll to let me know where you stand:

Are you looking for one-to-one coaching for your Skin Care Business?

  • No thanks! I am meeting my financial goals

  • Yes! I am seeking support and accountability

  • I need more time to think about it!

Schedule a one-to-one coaching session to discuss your financial goals

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