Essential Money Management Skills for Success and Survival

A newbie agent in a Facebook group asked for advice for starting out. In a few short hours, he received tons of great advice. I did not read every single comment before I shared mine.

If I can only share 1 advice to any agent (newbie or not), here's what I would share from my experience: Money Management Skills.

It doesn't matter how successful you are, or not, if you lack this skill, you will always be drowning and chasing.

My best advice:

(1) Run a debt-free business

Before you start producing income, start small. Most people have a laptop/ computer already. Don't go out to be techie - iPad, smartphone, the coolest gadgets under the sun. CRM and all. Of course, unless you already have them. 

When you earn your first paycheck, re-invest it back into your business.

When you are new, unfortunately, you may not be able to afford alot of conveniences that a successful agent has. If you want what they have NOW, but only it took them 10-15 years to get where they are, you are doomed to spend more than you make. Chasing.

I dont believe in debt. I dont believe in swiping credit cards to pay for things first.

During my first 4.5 years of real estate, I worked 2 full-time jobs. From there, I build a "warchest" to go full-time on real estate. I build my business through friends, not much marketing to speak off (compared to what I'm doing now).

As my business grows, I re-invested in farming, branding and alot more.

This is my 12th year of real estate.

Remember the story of the Tortoise and the Hare? The Tortoise wins every single time.

(2) Pay Uncle Sam what it owed

Set aside 25% of every paycheck. Remember every dollar you make, not everything is yours. After your brokerage fee, Uncle Sam is next in line. Pay him what is his and he will leave you alone.

This is where I see most agents fail. Successful ones even.

Once you get over a certain number, you may need to sock away 30% or even more!

No one likes to pay taxes. But no one wants to owe the IRS even more.

Please listen to me.

Essential money management skills is so critical to not only your success but your survival as well.

Content & Photography Copyright © 2013 by Loreena Yeo (3:16 team REALTY)
Essential Money Management Skills for Success and Survival