Money, Money, Money

Money Management for Yoga Teachers: Creating Stability and Balance

I am not a financial whiz, but for 40+ years, I have been able to wear stretchy pants to work every day, and get compensated well for what I do without ever having to get a “real job”. Read on to find out how you can do what you love, and make great money doing it!

As a yoga teacher, you’re likely passionate about your practice and helping others, but managing the financial side of your career can feel like a whole other challenge. Whether you’re teaching full-time or part-time, handling your finances with intention and strategy is essential for maintaining both your physical and mental well-being. I will admit, this has been a challenge for me for most of my career.

I want to invite you to take a few moments, and put thought to what you were raised to believe about money. Is it the root of all evil? Is money the answer to all of your problems? Is money flowing abundantly, or is it hard to come by? From this starting point, we can begin to create a new, healthier relationship with the almighty dollar.

Having trained over 1200 amazing yoga teachers, I have had this conversation numerous times, and it often comes down to these beliefs…yoga is a side hustle…I can’t make a living teaching yoga…I feel guilty asking to be paid for something that should be free…I am not worthy of asking to be compensated. Are you dug in on any of these beliefs?

Here are some suggestions for yoga teachers from our teacher training to help you find balance in both your practice and your pocketbook.

1. Understand Your Income Streams

Yoga teachers often have multiple income streams, which can make money management a little more complicated. I advise my graduates to wear multiple hats and find several ways to bring in revenue. These streams can include:

Studio classes (hourly pay or drop in rates)
Private sessions (typically more lucrative, paying between $50-$100 an hour)
Workshops and retreats (a great way to boost income)
Online classes or courses (a growing source of income any my favorite)
Corporate yoga (teaching at workplaces or businesses, again, typically more lucrative)

Tip: Identify all of your income streams and track them separately. This gives you a clearer picture of where your money is coming from and where you can focus your energy for growth. Dip your toes into a new revenue stream. Reach out to me, I can help point you in the right direction.

2. Track Your Expenses

Yoga teachers are often solopreneurs, meaning you’re responsible for both income and expenses. Tracking expenses will help you understand where your money is going. Common expenses might include:

Rent for teaching space
Insurance (professional liability, health, etc.)
Marketing and advertising (website, social media, flyers)
Yoga equipment (mats, blocks, props)
Continued education (certification courses, workshops)
Travel costs (for retreats or teaching at different locations)

Tip: Use an app like Mint, YNAB (You Need A Budget), or a simple spreadsheet to track every penny. I know, I resisted this for SO LONG. But it’s crucial that you know where your money is going. This not only helps you stay on top of your spending but also ensures you are deducting all eligible business expenses during tax season.

3. Budgeting: A Key to Stability

Budgeting is essential for any small business, and as a yoga teacher, it’s especially important due to the often fluctuating nature of income. Setting aside a portion of your income for taxes, savings, and unexpected expenses will provide financial security.

Tips for Budgeting:

50/30/20 rule: Allocate 50% of your income for necessities (like rent, bills), 30% for discretionary spending (like dining out, entertainment), and 20% for savings and investments (including retirement).
Emergency Fund: Aim for three to six months of living expenses saved for emergencies.
Tax savings: Set aside 25-30% of your income for taxes. As a self-employed individual, you may be required to pay quarterly estimated taxes. It’s hard, but better on tax day to already have it covered.

4. Set Financial Goals

It’s important to have clear financial goals so that you can measure progress and stay motivated. Your goals may include:

Saving for a retreat: Create a plan for going on a retreat for personal growth or ideally, leading your own retreats.
Paying off debt: Whether it’s loans or credit cards, setting a clear plan for debt repayment is crucial. Get that off your back!
Increasing income: Maybe you want to teach more classes, increase your private sessions, or launch an online course. Go back to the revenue streams and choose a new area to expand into. Teaching individual classes is the worst way to make money, try stepping into a new role!

Tip: Break down big goals into smaller, actionable steps. For example, if you want to save $5,000 for a retreat in one year, figure out how much you need to set aside each month and automate transfers to a separate account.

5. Maximize Your Earnings with Diversification

While teaching in a studio is fantastic, diversifying your income streams will create more financial stability. You could:

Teach specialized classes like prenatal yoga, kids’ yoga, or yoga for athletes to attract different demographics. These will also allow you to charge more per class.
Launch an online platform offering yoga classes, meditation sessions, or yoga-related merchandise. Platforms like Patreon or YouTube allow you to earn money through membership or ads. I am absolutely LOVING the Patreon Platform. Join for free and take a look at how I am doing it. I am happy to help you set up yours.
Offer workshops or retreats: These can bring in a substantial amount of income in one go.

By diversifying, you reduce the risks of relying on one income stream, especially if classes at your local studio are canceled due to low attendance or seasonal shifts.

6. Plan for Retirement

As a yoga teacher, you are likely self-employed, which means you don’t have access to a traditional employer-sponsored retirement plan. It’s important to take proactive steps to ensure financial stability after your teaching career is over.

Options for retirement accounts:

SEP IRA (Simplified Employee Pension): A retirement plan for self-employed individuals with high contribution limits.
Solo 401(k): A great option for individuals who are both the employer and employee.
Traditional or Roth IRA: Both options allow for tax-advantaged retirement savings.

Start small, but make sure to prioritize retirement savings. Even setting aside a small portion of your income each month can build up over time.

7. Mindset: Cultivating Abundance

This is the most important piece of advice I can offer. A positive, healthy mindset around money can significantly affect your financial reality. Money is just energy, like time, and as a yoga teacher, your practice can help you embrace abundance in all forms—both spiritual and financial. I often say to my students, get over your fear of asking for money. Give me all the money! I will do good things with it.

Tips for developing a healthy money mindset:

Affirmations: Every time I find even a penny, I hold it up and say out loud “I AM A MONEY MAGNET!” Use affirmations like “I am worthy of financial abundance” or “Money flows to me easily and effortlessly.”
Abundance over scarcity: Shift from a mindset of scarcity (“There’s never enough”) to abundance (“There’s more than enough”).
Invest in yourself: Just as you’d encourage students to invest in their practice, remember that investing in your financial knowledge, health, and education is crucial too.

For extra juice, consider a statue or photo of the Goddess Lakshmi, the goddess of prosperity and abundance.

8. Seek Professional Help When Needed

If managing finances feels overwhelming, consider hiring a financial advisor or accountant who specializes in working with small businesses or independent contractors. A professional can help with:

Tax planning and preparation
Financial forecasting
Business structure advice (LLC vs. Sole Proprietorship, etc.)

While this may come with a cost, the peace of mind and potential for tax savings can be worth it.

Final Thoughts

As a yoga teacher, you’re already a master of balance in your physical practice. Now, it’s time to bring that same balance into your financial life. With mindful budgeting, tracking, and investing in yourself, you can ensure a more stable, prosperous future—both on and off the mat.

Remember, money isn’t just about accumulating wealth—it’s about finding freedom and peace of mind. When you take control of your finances, you’ll be able to focus even more on what you truly love: teaching, connecting with your students, and continuing to grow your practice.

Namaste to financial wellness! 🧘‍♀️💰