10 Useful Tips For Real Estate Agents Seeking Financial Independence in 2023

One of the most advantageous aspects of becoming a real estate agent is the possibility of an infinite income. The drawback of this flexibility is that it encourages careless spending.

I’ve talked to a lot of accomplished real estate agents who have worked hard for years in the industry but have nothing to show for it.

You may learn more about retirement savings, how to begin building your money, and how to have the appropriate financial mindset by following these ten financial independence tips.

1. Initially, pay yourself

Paying yourself first comes top on our list of financial independence advice. However, it does not imply purchasing tangible goods. Instead, it entails investing your funds in a savings strategy.

It’s important to see saving as paying yourself. Most people spend their monthly income, leaving them with nothing left over for savings. You must keep an eye on your financial flow. You’re going to lose it if you don’t.

Start saving right now and save as much money as you can. Start by setting aside 10% of your salary for long-term investments. Every penny you save helps you pay yourself later.

2. Constantly look for ways to boost your savings rate

You should figure out your hourly rate, even if you work as a real estate agent. Divide the amount you made last year or expect to make this year by 2000, which is the typical number of hours one works in a year.

Try to raise your savings from 10% to 20% of that sum. There are two strategies to raise your savings rate. Either increase your income or decrease your spending. The majority of your money should be set aside for savings.

This is difficult for a realtor because your revenue is not stable. You will therefore need to exercise greater restraint in both your income and your spending.

Every year, one of my objectives is to earn more money per hour. You can achieve this by either making more money while working fewer hours or by working fewer hours while earning more money.

Choose the approach that works best for you so that you can finally save half of your income.

3. Liabilities Have No Debts

Be careful with your debt is one of the most typical financial independence advice you may receive. There is justification for borrowing money to purchase an asset. It differs when it comes to liabilities, such as when real estate brokers incur debt to buy a car. You are taking money from your future self when you do this, and you will pay for it in the long run.

In the long run, taking on debt while never saving will cost you your wealth.

Get on a system like You Need a Budget (YNAB) if you have debt for liabilities and try to pay it off as soon as you can. See my other post for more on how to pay off debt.

4. Educate Yourself

This could be specialized business or financial education, or general education linked to your line of work. The reason it’s necessary to invest in your education is that we are compensated for the knowledge we possess. Consider it an investment in you.

Use the tools that can help you improve your talents, such as classes, conferences, training sessions, videos, and books. To get you started, look at our post on the 25 top real estate agent books.

5. Take Responsibility For Everything

You can manage your time more effectively and increase your wealth the sooner you take control of things.

For instance, assume the duty of coming up with a remedy when anything bad occurs to you. Instead of waiting for someone else to find the solution, consider how you might contribute to it.

6. Actively Look For Issues To Fix

Instead of intentionally avoiding issues, you must adopt the mindset of aggressively seeking them out.

Prior to assisting others, it would be preferable if you overcame your own problems. You will become more useful, be able to offer more, and attract money if you help others with their issues.

When you start helping people, you stop being a dollar-per-hour worker and start climbing the corporate ladder to eventually operate your own firm.

7. Make Use of Resources

When you’re the only one in charge, it starts to be challenging to grow your firm. For this reason, you ought to rely on others for assistance. For instance, you could work with a transaction manager and virtual assistant.

There are more ways to diversify your sources of income. I’ve developed real estate teams, managed a sole proprietorship, and launched a property management company in the past. I am currently using eXp Realty’s architecture to create a team of agents that spans the country. Find out more about working together at eXp Realty here.

This is also the reason I created my YouTube channel and this blog. The fact that I work as a real estate agent, which pays well and I enjoy, is my dollar-per-hour job. Yet another method I may diversify my income and help people is by expanding my internet content business.

You should also leverage your financial resources. This could entail investing in real estate for rental purposes or opening a wealth account. Consider every dollar as a potential employee who can help you generate more money.

8. Stop Your Dollar-Per-Hour Mentality

You must abandon the idea that you are an hourly worker if you want to develop in your profession. A dollar per hour salary puts you at a ceiling since there is a maximum amount that an employer will pay you. However, when you connect your value to helping others, that ceiling becomes insurmountable.

Because of this, you need to start considering how you can assist others, even if it’s simply a side business in addition to your regular employment. Create something you can grow over time to begin acquiring riches. Create something that benefits other individuals.

9. Have a well-defined strategy for your finances

You should consider these factors when formulating a strategy for your financial future:

What is your current net worth?
In five years, where do you want your net worth to be? In ten years time?
Do you keep a spreadsheet where you track your objectives?
Once you are clear on your financial goals for the future, you can begin to determine the steps necessary to get there.

What is your one-year plan to pay off your debt, even if you don’t have any money? Three-year strategy?

It gets simpler once you have a detailed plan for yourself. There is a proverb that states, “If you don’t have a vision for yourself, you’ll become a part of somebody else’s vision.”

10. Take Reasonable Risks

Calculated risk refers to taking calculated risks that you believe have a high likelihood of being profitable. For instance, each year I set aside 10% of my budget for “R&D” (Research and Development).

If you stop to consider it, practically every business has this planned for in their budget. So why should real estate agents be any different? This can entail making an investment in a brand-new kind of side business or lead generating.

However, the 10% need not be entirely monetary; it might also include your time. I made the decision to devote 10% of my time in 2018 to developing my blog. I spent 10% of my time in 2019 creating my YouTube account. Both have greatly rewarded me, and I now devote more time to each.

Although being an entrepreneur entails some risk, working as a W-2 employee is almost riskier. If you stop to think about it, working as a W-2 employee means you’re handing over control of your financial destiny to a business.

It is advisable to take calculated risks and acquire all business-related knowledge. You’ll be ready in this manner regardless of what your financial future holds.

Last Words On Financial Independence Advice For Realtors

You’ll be better able to manage your money and save for retirement if you follow these ten advices for financial freedom. Gaining riches requires patience. However, if you maintain your focus and follow these suggestions, you’ll have a prosperous financial future ahead of you.

Now, please share your thoughts in the section below. What are you doing right now to diversify your sources of income? What types of investments are you making with your savings? I would adore hearing from you! Be well now, and let’s sell some houses!