Financial Planning: Essential for all Health and Wellness Professionals
by Carol Leitner
Financial planning is essential for individuals in any profession. However, there is an alarming tendency in the health and wellness community to brush aside this important business aspect. Many yoga instructors, therapists, coaches and healers may find themselves so busy teaching and helping clients that they prioritize this over financial matters, assuming that their passion will naturally lead to financial stability. Oftentimes, those in the healing professions have variable and inconsistent income streams. This uncertainty can lead to the misconception that financial planning is challenging or not applicable to their situation. Additionally, financial planning might not be a topic that is discussed often within their circles, and they may not be aware of its importance or how to get started.
While all of these are valid reasons, it’s in every entrepreneur’s best interest to consider financial planning to be of great importance. Engaging in financial planning can provide them with greater financial stability, peace of mind, and the ability to pursue their passion without financial stress. Seeking guidance from financial professionals or educational resources can help those in the healing professions overcome barriers and create a more secure financial future.
The following five steps can help every health and wellness profession take control of their financial future:
Track expenses: Make sure to track revenue coming in and expenses going out on a regular basis. Be clear about whether you are matching your expenses with your income. You also need to be saving for your future.
Get a financial advisor: Meet with a financial advisor to invest your money. If you are in your late 40s or 50s, move your money into safer investments.
Multiple income streams: Have alternative sources of income, i.e., residual income where you are not trading time for money.
Be mindful of cost of living: When you set your prices consider the higher cost of living such as food, rent, utilities, etc. These prices are going up dramatically. Also, consider the cost and hours of your professional training, and the expertise that you provide in your field of health. Assisting others in optimizing their health is extremely valuable.
Honor time: Set policies that honor you and your students. Note that extending class cards, for example, means that you do not get paid for that time. Your expenses are coming in, but you are not collecting revenues for that time period. Consider offering make-up classes/sessions rather than extending class cards.
It makes the most sense that people who offer such valuable services helping to improve the health and well-being of others should live a life of financial and time freedom. By following the above steps, those in the healing professions can set themselves up for a successful future.Carol Leitner, MBA, Certified Kripalu Yoga Instructor and Sales Director for Natural Awakenings NYC/LI has been teaching yoga since 2000. To connect, call 516-242-8270 or email [email protected]. She also runs two health networking organizations totaling over 5000