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practices, and all the little things that keep us busy as massage therapists. Retirement or financial independence is not always at the forefront of our minds. But here are a few tips to help you make it more of a priority. Make saving a habit. Put your contributions on autopilot. Don't plan to save chunks of money here and there when you can, but rather set up automatic transfers every month so that it becomes a habit and something that just happens without intervention, like your mortgage or rent. Visualize the future. It can be valuable to take time here and there to close your eyes, clear your mind, and picture what financial independence looks like for you. What will you do? How will it feel? What impact would it make in your life or in your community if you were truly financially independent? Use a budget. Work with a tool like You Need a Budget (www.youneedabudget.com) to track your spending and cash flow so that you can see where every dollar is going. This helps you get intentional with your savings plan and creates room to make it a priority. Above all, remember that saving for financial independence is financial self-care. It is a commitment to prioritizing your security and your future so that you can build a strong foundation from which to help others. Allissa Haines and Michael Reynolds can be found at www.massagebusinessblueprint.com, a member-based community designed to help you attract more clients, make more money, and improve your quality of life. account (though not the best choice), or it can have stocks, bonds, mutual funds, and other types of investments. The choices are vast and confusing, and it can quickly get overwhelming. This is why we generally recommend keeping it simple by investing in mutual funds. Mutual funds are "collections" of stocks and bonds pooled together into one fund that spreads out the risk by investing in lots of companies. This makes mutual funds generally more stable and lower risk than investing in individual stocks. How do you know what mutual funds to invest in? There are thousands of funds to choose from, and many financial professionals make a career out of researching and analyzing mutual funds. But for most people, there are some simple guidelines for choosing your investments. Remember, this is not specific advice but is meant as an educational overview. One thing to keep in mind is that you want to have diversification. This means that you generally don't want to invest all your money in small companies, international stocks, or any one sector. Many experts suggest investing in mutual funds that cover a broad range of companies, such as a total market index fund. If you DIY your investing, all the major providers will give you the option of using "models," which are predefined portfolios designed to give you a good, basic mix of investments based on a few facts about your life. They are usually pretty reasonable and in the absence of more hands-on advice, they can serve you well. If you choose to work with a professional, they will likely customize your investments to match your life and your goals more closely. THE PATH TO FINANCIAL INDEPENDENCE As humans, we are wired to focus on what's in front of us right now. That usually means things like getting clients, marketing our Solo 401(k) Another great account type is the Solo 401(k). A Solo 401(k) is sort of like a "mini" 401(k) that is designed specifically for single-owner businesses. As a solo massage therapist, you can set up a Solo 401(k), which allows you to save more money than you could with an IRA, and also have both a traditional and a Roth option. It's not as well-known as other types of accounts, but it's a great option for massage therapists who want to save more than the IRA limits allow or if their household income is high enough that they don't qualify for a Roth IRA. Taxable Brokerage Account Finally, a taxable brokerage account can be worth a look as well. This is simply a generalized account that can hold the same types of investments as an IRA or a Solo 401(k), but it is not tax sheltered. While the lack of tax savings is not great, it has the advantage of being free from savings or withdrawal constraints. You can save as much as you want into it, and you can withdraw money whenever you want with no penalty—unlike an IRA and 401(k), which can have penalties for early withdrawal. It's a great option if you want to plan for financial independence earlier than the traditional retirement age or you want more flexibility with your savings and withdrawals. So how do you get these accounts set up? There are lots of options. You can go to any of the major providers like Vanguard or Schwab. Or you can work with a financial advisor for more personalized help. There is no right or wrong. HOW TO INVEST What is your money actually invested in when you save? It's up to you! An investment account, like an IRA, 401(k), or brokerage account can contain anything you want. It can contain cash like a bank Mind Your Money 2020 Financial Literacy Series www.abmp.com/money C h e c k o u t A B M P P o c k e t P a t h o l o g y a t w w w. a b m p . c o m / a b m p - p o c k e t - p a t h o l o g y - a p p . 21