Having money put aside really does change the way that you work as an individual. In this Coaching Tip I’m talking about getting back to safety and out of panic mode with your finances.
You need to be in a position in your life that your income is greater than your expenses. The problem comes when you feel really successful and start to spend what you’re making. Before you start spending that extra money coming in, calculate what it costs for you and your family to live each month, then triple that amount. This is the minimum savings you should have in your bank account. This is your first level of safety.
Next, decide how much savings you need to feel comfortable and put back that amount. Then project on how much you need in order to become entrepreneurial. Here, you won’t be depleting your savings if you buy an investment property or a house, and putting undue pressure downwards on your assistants and yourself because suddenly you’re in panic mode not having that cash at call.
You owe it to yourself, your team and your customers to buy yourself that knowledge that everything’s going to be okay, for you and for them. Yes, it’s tough to start that savings account when you’re a new agent working to just meet your current expenses, but as soon as you start to earn good money make sure you start saving some. With enough reserve income you have no worries around whether or not you’ll survive. You will.
Keep yourself in a position of safety so that you can help people make better decisions around selling their properties now or waiting for the right time. You can give your best advice because you don’t need to make the sale. And that’s where your position is most powerful.
I hope you’ve enjoyed today’s Coaching Tip, and I look forward to seeing you here again next week.