The #1 Money Habit Dance Teachers Need in 2021
Ok. January of 2021 is over. (And it felt like it lasted a year). The shiny new year vibes have cooled off a little, which begs the question, ‘how are your new year’s goals and resolutions going?’
Maybe you’re knocking goals down right and left, feeling super motivated and inspired. Maybe you’ve modified and edited your original goals, or maybe those ideas and intentions you made back in December 2020 feel as dead as your oldest pair of pointe shoes.
It’s all good, valid, and understandable - this is a judgement free zone.
No matter where you fall on the spectrum, you likely had some financial goals as part of your new year plan. Considering this post on 4 Ways to Save Your Dance Studio Money is my most saved Pin on Pinterest, this is a topic you all have on your minds. Also, considering 2020 was a rough year for most studio owners and dance teachers, this topic seems timely.
My money mindset, and the health of my bank accounts drastically changed when I started doing this one thing, so I want to share it with you today in the hopes of helping you make your financial goals for 2021 a reality.
PAY YOURSELF FIRST
Huh? What does this even mean? Well, listen up love: when you get a paycheck (whether it be the salary you pay yourself, money from your side hustle or extra teaching gigs), a portion of that money needs to go back to YOU.
We tend to think our paychecks are all ours, that our paycheck is payment to ourself, but really, it’s not. Because the money from that paycheck goes to rent, groceries, electric, Netflix, etc. these are expenses that are necessary to your well being, and go towards keeping you safe and stable, but you are in fact, giving that money to other people, not yourself.
The book The Richest Man in Babylon explains this concept much better than I could, so you should get your hands on a copy of it, but what this idea of ‘pay yourself first’ boils down to is that in order to get ahead financially, you must pay yourself first; you must set aside some money from every paycheck that goes into a savings account, just for you. 10% is the usual rule of thumb when paying yourself first, but do what works for you. The point is that you’re acting with intent around money; intentionally putting yourself first and treating your income with the respect that it (and you) deserve.
Simple? Somewhat obvious? Maybe. But aren’t those simple, somewhat obvious things usually the things we need reminders of most often? I think the reason advice like this feels obvious is because deep down, we already know it. We’ve just forgotten. We got too wrapped up in living our busy lives, so the reminder hits us extra tenderly, but with a dose of ‘duh’.
So as you continue to update, edit, modify, or let go of your 2021 goals, I hope you keep this in mind. I have a sneaking suspicion that if you start this habit, you’ll also start seeing more ways where you can be putting yourself first, paying yourself first, and paying into the savings account of you.