Updated: Jul 7, 2021
This is an extremely uncomfortable topic. People don’t like to talk about how they spend their money, and how to be more financially responsible. But real estate agents and brokers get big commission checks. And the problem is, most of them have spent those checks before they even clear the bank.
As a new agent, I was making more money than I knew what to do with. But when you make a lot, you have a tendency to spend a lot. And there came a time when my debt, and the IRS, caught up with me. When you get to that point where you don’t know how to dig yourself out of a hole, you have to ask for help. You can’t get out of that hole alone. You need someone to help dig you out. Even big, bad Johnny Mo needs to ask for help sometimes.
If I learned anything from the amazing book, “Profit First,” by Michael Michalowicz, it’s that we don’t have an income problem, we have a cash flow problem. And as Jennifer Henry says, most business owners are one tragedy away from financial ruin.
So why do we, as brokers, spend so little time focusing on our own financial literacy? Better yet, why do we not spend more time teaching our agents to do the same? After all, if you take the time to help your agents succeed in this area, they will feel forever indebted to you, which can help with that agent retention we are always thinking about.
Becoming financially literate involves making a plan. Say you get a $10,000 check. Here is how Jennifer Henry suggests you break it up, right from the start:
10% to a giving account, for various charitable contributions.
5% in pocket account; half goes to you, half is reinvested in your business.
15% in a tax account, depending on what state you live in.
25-30% spent on travel for retreats, education, and other businesses expenses.
50% to a family account.
Don’t just help your agents increase their sales; help them keep their money.
Clarity is power. Know what you’re working with. First, find out your expenses; figure out what you need in a month to survive, and what you could cut out. Second, get into paying yourself a salary. These two steps are the starting points to monumental change.
If you would like to learn more about how to build a multi-point revenue business, or to learn more about Explore My Town and MyTown Connects, send an email to PartnerSuccess@ExploreMyTown.com
To learn more about Explore My Town go to https://www.Partnerwithmytown.com
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Till next time,
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