I can do that standing on my head.

Hi Alan- I always worked on commission (except for my short stint doing psychological testing) so I had to have at least 3 months of funds to cover things just in case. Now when it comes to stashing other stuff, you're talking to a former Girl Scout...be prepared. 

I agree Alan at some point agents realize that markets go up and down - and making sure they have a buffer of savings to see them though it is an excellent plan. A mentor taught me to look at income as yearly early on in my career-  and to plan ahead  in case there were some lean months.That one little piece of advise has saved my butt many times over the years - not always, in particular 08 down fall.  At that time we had a big office of agents and support staff but we did work our way out of that one - and the first thing I learned back then was get rid of as many expenses as possible first. And get back to doing what really matters the most - working with our A list and keeping the lines of communication wide open.

Hi Alan May, it's a tough life lesson that too often is learned through experience. Of course, Mimi Foster makes an important point too.

It is true, everyone should have something saved just in case. Unfortunately, many do not.

Real estate agents definitely know how fickle income can be!

And my late Siberian Husky was actually quite picky about finding "the spot" for her duties. Geez. I was like, "come on, GO already!" And believe it or not when it snowed a lot she had a really hard time finding somewhere to do it. It's like she didn't want the snow to touch her butt. She was a husky for cryin' out loud.

Good article, everyone should be prepared for a rainy day.  I still don't understand the toilet paper thing.;)

I knew you had all the toilet paper, mind you i did get some at costco the other day, and even giving half to my brother and sister in law I think I now have enough to last the rest of the year.....

Congratulations on the feature- I think a lot of people are going to be learning that this is a new world and that finances need to change up

We're fortunate in many ways, one of which is we're usually ahead on the necessities by weeks/months (including TP).  Our TP searches right now are to provide for Liz's parents in Maryland (apparently scarcer there than here) and some elderly friends here locally.

I'm also fortunate my engineering job is perfectly suited for working from home, so there's not been a huge change in my day other than not needing to make myself presentable enough to drive 20 miles to the office.

ALan, enjoyed your post and as always impressed with the way you can turn a phrase..." We Realtors understand, just as the Siberian Huskies, that the trees can be very far apart, and we need to be prepared for that."

Alan May When Realtors realize they are independent contractors and plan for the down times, they will be prepared.  Relying on hope or the government potentially opens the door even wider for despair.

Most realtors are used to working at home and having income that comes in waves.   But these are scary times indeed for many folks.

Real estate agents are like camels - we can store the "water" for longer periods of time than most other professions. But it will catch up to us I'm afraid.

Hi Alan:

It's definintely a tough time for many, with more challenges ahead I fear!

Jeff

Yes it is something all of us as agents have been through a time or two...but for the rest of the world it can be very scary. 

Good evening Alan May ,
With this pandemic there are going to be many lessons learned when coming out on the other side. One is understanding having at least a 3 month cushion of funds is absolutely a must.

It's easy to say everyone should have a cushion of money but the reality is much different for many people.  You are right--realtors must plan for months with no income--especially in the beginning!  I already know that the second half of the year will be extremely slow for me--until this pandemic is over, all can get tests and there is a vaccine.  But some, especially single people, do not or cannot have that cushion. Even four months is probably not enough during a pandemic.   If I commented any more it would get into opinions that may offend some so I'll leave it there!

Each day presents new challenges and questions.  the sun will come out tomorrow.  

We were having such a good year! Yes Realtors can roll with the punches but this shut down of the world is all together different than anything we could ever have dreamt of, let alone plan for. Thankfully we have deals in the drawer but some of those are falling apart becasue people have lost their jobs, or their 401Ks and the businesses they built.  We need to turn the switch on and get back to work 

I started my inspection business is 2007, as a back up plan for a soon to be terrible job. When the time came to go full time, I knew there would be ups and downs, and I have planned for it. This is pretty much down, but we'll make it and be better on the other side. 

I agree with Anna Banana Kruchten Broker, CRB, CRS !  I already eliminated several expenses prior to this hitting, and working on more!  Holding off on that shiny car for a while as well.  Prepare, prepare and prepare should always be a realtor's motto!