7 STEPS TO BECOMING ROCK STAR REALTOR (STEP 6)
NUMBERS DO TELL ALL
STEP 6: CREATING AND MAINTAINING A BUDGET
Real estate is a great career when everyone is closing deals. Many of us are accustomed of obtaining a paycheck every two weeks. Well, change is here. One must learn how to budget their time and money to make it through the highs and lows when it comes to real estate closings. There are times when I needed my commission check to pay my mortgage. Then, the closing is extended for another week. We have all been there when we first started our real estate careers. So, this step is to discuss in detail better ways to create a budget so we have money to enjoy life.
MY TOP 5 REASONS ON WHY I CREATE A REAL ESTATE BUSINESS BUDGET
- Having a budget allows me to measure my business performance against set goals
- Helps me to balance my time when it comes to priorities
- Know where my money goes at all times
- Makes me 100% accountable for my performance
- Easier to file taxes at the end of the year
HERE ARE CATEGORIES TO CONSIDER WHEN BUDGETING FOR REAL ESTATE
- Accounting Fees
- Advertising and Donations
- Gifts
- License Dues
- Memberships
- Equipment
- Furniture
- Equipment
- Gifts
- License Dues
- Memberships
- Equipment
- Furniture
- Equipment Repair & Wireless
- Forms
- E/O Insurance
- Insurance
- Legal Fees
- Loan Int/Bank Fees
- Loan Payment
- Maintenance
- Medical Insurance
- Meeting/Entertainment
- MISC
- Owner (RE) payment
- Payroll (inc tax)
- Phone Service
- Phone System
- Postage
- Rent
- Savings Deposits
- Shows/Seminars
- Signs
- SuppliesTaxes
- Utilities
- Web/Internet
There are plenty of inexpensive software packages when creating a budget. Personally, I use Quicken. I know others use Microsoft Money or Quickbooks Software. It is really up to the person at this point. The main thing is to create and maintain a real estate budget. It cuts down on the stress during transactions.
OVERCOME NEGATIVE THOUGHTS
Do not allow your negative thoughts talk you out of creating the budget. Some of you are thinking the following:
- I do not make enough money to have a budget
- I am not good at math
- I am not good with computers
I can be here all night listing all of our negative thoughts. The only way to overcome the negative thoughts is by creating and maintaining a budget. Personally, I review my budget on a weekly and monthly basis to see where I am at in my business. Am I going to make my numbers? If I make my monthly numbers, then I treat myself for doing a great job. We all need positive reinforcement when in business. I would highly recommend to have six months of expenses in a bank account to ride the ups and downs of closing real estate transactions. It creates less stress at time (based upon my own experience.)
I wish everyone success in real estate. My desire for this post is for people reading this post take it to action. We all need realistic business and personal budgets so we stay out of financial problems. Real estate is a contact sport. That means we need people in our business. Make it happen, TODAY.
FINANCIAL FREEDOM
Make the Call, Set the Plan, Do the Deal$!
Feel free to listen to my Radio Show to learn more about the phoenix real estate market, new trends, and the latest opportunities. The Real Estate and Beyond Radio Show Airs every Saturday from Noon-2:00pm on Conservative Newstalk KKNT 960am in Phoenix, Arizona. You can listent to past shows, or stream on-line.
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