Budgeting is important for almost every person, in every career (except the lucky few), but it's even more important for real estate agents. This is because agents typically work for themselves or for brokerages that operate without offering retirement plans, etc. So, planning for the future has an entirely different meaning, hence budgeting tips that every agent should know.
Saving for Taxes and Retirement - Yesterday
Agents of the world: we are here to tell you that right now, yes right now, is the time to start saving for taxes and retirement. Real estate agents notoriously get hit heavy during tax season. So, with every. single. commission. you make (yes, each one) you must be setting some money aside for both taxes and retirement. Even more money should be set aside if you're saving for a dependent's college accounts, etc. Of all the budgeting tips, this is number 1 for a reason. Agents need to be preparing for their future so that they can actually enjoy it.
Saving for a Rainy Day (or a slow season)
There are cycles to everything in life. There's nothing quite like the cycles of the real estate market. Agents must plan ahead for these slow seasons or lulls in the cycle, and that's why there's a budgeting tip for this. Take a good look at the income you make off of commissions regularly - not just in high seasons - but regularly and take as much as possible and put it into savings. We aren't saying have no spending money. "As much as possible" looks different for everyone. However, in high seasons - consider putting more into savings. This might seem like a drag but it's not as much of a drag as going into debt when sales are slim.
Budgeting for Your Business
Don't forget to budget for your business! This means clothes, marketing, gifts, meetings - you name it, it should have a budget. This way you aren't buying twenty different candles at Home Goods and forgetting about the stash you already have. Maybe it's been a slow season and you need to shift some funding away from your suit budget for showings. Either way: you won't really know unless you budget.
The good news is, there are apps for this. There's also people you can hire if you're really feeling up to the task. Free budgeting apps like Mint are a great way to look at what you're spending and figure out if it's working for you or not. At the end of the day, your budget is only as good as you are.
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