If you are a realtor, then you already know that handling your finances is not necessarily an easy task. There are many factors which can influence financing for realtors, California; thankfully, there are many ways you can improve and stabilize your finances for the better. The following are 3 tips to help you improve your finances as a real estate agent.
Tip #1: Use commission loans to keep your cash flow regular
If you aren’t already taking advantage of realtor’s commission loans, you need to be! As any realtor knows, if you are relying on commissions for your income there are periods of time where you will have no income at all due to waiting for commissions to process or even experiencing a dry season. Commission loans allow you to get an advance on your commissions; this, in turns, will give you a more stable cash flow rather than forcing you to rely on savings in the periods between receiving commissions.
Tip #2: Put money away from every check for more secure finances
It may seem like a common sense tip, but you would be surprised how few people recognize the importance of saving money from every check in the long run. When you save some money from every check, you’re ensuring that you’ll have some extra money at all times—money that can be used for emergencies like repairs to your home, vehicle, sudden bills and so on. You will also need to ensure you’re saving money for your quarterly taxes, which can take many real estate agents by surprise.
Tip #3: Keep meticulous track of your spending
Real estate cash flow is vastly different from a standard 9-to-5 job’s cash flow, and you’ll need to ensure you’re keeping very good track of your spending. Write down everything you spend to help you balance your accounts to the letter, which will help you avoid the pitfalls of spending more than you earn.