Spending time with my money is the internal component to becoming successful as a real estate agent. I have watched many real estate agents over the years including myself where our main focus is identifying a ready, willing and able client which is what I consider the external component. We close the deal and make a commission. Great! The focus remains on the external part-find the client, get deal to close and make money. We are too busy for record-keeping, budgeting, taking taxes out, paying ourselves a paycheck, and planning for retirement which is spending time with our money. Maybe by now, you get the gist of what I mean when I talk about the internal and external parts in our business. In case you don't let me break it down again. The internal part is spending time with your money and see where you can cut cost, save or simply paying attention to it. The external part is focused on providing the service and closing the deal.
Most of my blogs come from my life experience as a real estate agent. One of my blogs are titled, "My $60,000 IRS Major Mistake" due to me focusing strictly on running after the deals and making plenty money; but I forgot to deal with the internal part, my money. It's the same as spending time with your spouse. If you expect to have a successful marriage, then you have to spend time with your spouse or otherwise there is going to be an unhappy mate which could possibly lead to divorce or someone cheating. To become a successful real estate agent, you have to spend time with your money. You have to make sure that you are managing your money and your money does not manage you to avoid financial hardship. Whether business or personal you have to make sure that you don't live above your means. We drive the nice car and dress to impress but have zero in our bank account with no money plan.
The best way to improve your relationship with money is mainly through the respect for money. You can't enjoy a good relationship with money unless you're willing to respect it. If you do not treat it with respect, then you will mistreat it.
Here are some ways to spending time with your money:
1. The ugly word "Budget Monthly." Contact me for a Budget Worksheet.
2. Prioritize expenses.
3. Pay attention to your money.
4. Set a date night for spending time with your money.
5. Pay yourself.
6. Set aside money for your taxes.
7. Stop trying to impress your peers.
8. Know the difference between a want and a need.
9. Do not deny the truth about your financial situation.
10. Live for the day but don't totally forget tomorrow.
Real Life Stories:
I have been a real estate agent for 11 years and I have made a profit. I am able to support myself but my issue is how do I go to the next level with my finances? I spend long hours working to sell real estate. My financial record-keeping is not in order. I have not completed my tax returns for the last seven years and I do not even have a life insurance policy.
I already don't have enough hours in the day to work my regular real estate business. I definitely don't have time to spend time doing my record -keeping. I keep saying tomorrow. Dealing with my clients, putting out fires, and dealing with my five team members makes it impossible for me to focus on my money. I don't trust anyone dealing with my money. I keep thinking that eventually everything will work itself out.
I spend time with my money and have a good record-keeping system, save for tomorrow and even invest; but I don’t think I am on target with my retirement plan. I would love to leave my real estate business to my son but I don’t believe my business can sustain itself financially after I am gone.
Quick Action Plan:
1. Do a 90 day financial plan.
2. Start Budgeting immediately.
3. Sit down with a Financial Advisor.
4. Take a financial snapshot.
5. Think every financial decision through.