One of the best things to do early in each year is creating a budget. Agents often do not have a clear idea of how much things cost and as a result run into financial difficulties.
Here are 5 tips for making a budget:
1. Monitor your marketing money. Too many agents throw marketing money around without measuring the return on investment. Where did your business come from last year? What worked and what did not work? Then focus your marketing dollars on what works “best” and not just what works “well”.
2. Put money aside in the good months. Real Estate is a seasonal business and in the 9 good months put money aside to get through those 3 slower winter months. Resist the temptation in the good months to start a spending spree. First put some money aside and keep perspective.
3. Stay within your limits. Unless you are selling million dollar homes, try to resist the urge to be flashy. Best to simply be professional and practical. Too easy to try and impress people by throwing money around, which ultimately will not work in the long term.
4. Save where you can. Take a close look at all the expenses and cut costs where you can. Can you find a cheaper place to host your website? Can you go on a different split arrangement with your broker and keep more of your commission? Perhaps look at ways to save on house or car insurance. Find less expensive alternative and eliminate those things you are not really needing.
5. Get a budget spreadsheet. Spreadsheets allow you to instantly see the impact to your bottom line when you change any of the numbers. I recommend you create your own spreadsheet or check out our free budgeting spreadsheet which is offered by Moneyledgers here:
.**FREE Budgeting Spreadsheet Click here to download – for instructional video Click here
Related Resource to Save You Money ** 15 Best Free Real Estate Apps: click here
Budgeting is important to staying financially organized and your article helped lead the way. Thank you for sharing these tips!
You are welcome! thanks for visiting and commenting 🙂