Anytime you take the leap into a new career, having a strict budget in place goes a long way toward ensuring your success. Here’s how to approach your spending so your money ends up making you more.

Video Transcription

Alright, so 87% of REALTORS® are failing within the first five years because you’re just not good at managing your money and most people don’t understand how powerful a budget is and a powerful tool to help you plan and guide your business to success and it specifically helps you know what’s working and what’s not working in your business.

So, what I want to do is give you guys three tips that you can apply to your business specifically your budget.

Stick to it.

The first is once you create a budget you have to stick to that budget. Now I know that sounds simplistic guys, but so many businesses fail because they give in and they don’t stick to their budget. You have to commit and stick to your budget to judge your success.

Lead with revenue.

The second tip is you want to make sure you lead with revenue. What does that mean? Well Gary Keller always says that agents tend to have this Field of Dreams model where they feel that if they just spend a bunch of money the listings, the buyers, are just gonna rain from the sky. It’s not gonna work that way, you want to guide your budget, guide your business, off of this principle of leading with revenue. You don’t spend money unless you’re making money and you don’t spend more money unless that’s gonna make you more money, so you want to lead with revenue because everybody’s gonna try to sell you everything under the sun. You’re gonna be approached with every shiny new object and if you don’t stick to your budget and if you don’t have the principle leading with revenue you’re gonna fail.

Perform an audit.

Now the third tip I’m going to give you is you want to audit your money and hold your money accountable to results. I’m talking every bit of what you do when you look at your operating expense. I’m talking the paper that you use to print out your contracts, tie back your money and how you spent it either indirectly or directly to results to how it helps you close a deal. Hold your money accountable to results

The takeaway.

Alright guys there you have it. So many agents are failing within the first five years because they’re not applying these principles to their business and to their budget. If you like these tips subscribe to our YouTube channel, as always comment below, let me know your tips on budgeting, where you’ve had successes and failures. Check us out on Instagram and Facebook, but most importantly guys take action on this today!