As realtors, all of us are keen to achieve financial stability in our professional and personal lives, if not complete financial freedom. Being independent business owners, our income is dependent on the hard-work we put in, market conditions and a bit of luck and therefore oscillates a lot like the pendulum swinging in the wall clock in front of you. It is necessary to take control of the reigns of your finances if you want 2020 to become a landmark year in your career as a realtor.
To reach this goal, you should know where all your hard-earned money is going. Are you splurging on unwanted personal effects or on an unnecessary office renovation project? Financial freedom is definitely an achievable goal if you can implement the below mentioned easy to use tips to get yourself on the expressway to financial freedom.
#1. Trace your expenses
As soon as the commission cheques begin to hit your account, do you get over the moon and spend for superfluous expenses and then wonder “Hey, where did my money go?” then it is time to sit down and track these expenses. Use any of the money tracking apps available and know where the cash leak is and take control of these spending. This way you can save more and put your earnings to better use.
#2. Create a separate budget for home and business…and stick to it
We all need a guide in our lives so that we take the right decisions in life at the right time and a spending budget can play a similar role in our financial life. As a full-time realtor, it is advisable to keep separate budgets for home and business finances and individual spending plans for both. Fixed expenses (Monthly bills, EMIs), irregular expenses (property taxes, water charges) and miscellaneous expenses should be listed separately. In case you have to reduce expenses, a detailed sheet will help you to make the right decision.
#3. Reduce home expenses before turning towards business
Making cuts on the home front is always advisable before reducing business expenses, though the latter may seem easier. At home too, make reductions on discretionary expenses first and then turn towards the others if necessary.
#4. Reduce Debt
It is commonly seen that loans and debts prevents people from achieving financial freedom and living a debt-free life. In 2020, make it a goal to pay off more towards credit card loans (the deadliest loan), mortgage EMIs and Car loans. Call your finance company and personally deliver the news that you are willing to pay more this year to get out of their clutches sooner than they thought.
#5. Reduce impulse purchases
Ever felt guilty after buying that expensive watch or the hottest mobile phone on a whim from a glitzy showroom? Such impulsive purchases are probable reasons why your finances are how they are. Make it a habit to ruminate over an object of desire for a minimum of 24 hours before you make the decision. This habit will keep you from spending your hard-earned money on things you actually do not need. Try it! It works.