When Should You Spend The Check?

Today I wanted to share advice for newer sales people... perhaps one of the best pieces of advice I have ever heard. The answer to the question "when should you spend the check" is a key answer for anyone in the real estate industry.

Veterans know that deals fall apart. In fact, studies show that as many as 20% of deals fall through. If you have 5 deals scheduled to close that may not be a big deal... but if it is your only deal it can crush your finances. So what advice should we give new people in our industry?

"Don't spend a penny until the check is in your account!"

I could just stop there and call this a finished post. But let's delve a little deeper.

• Commission based sales people should have a 6 month reserve in the bank to cover all their bills.
• Until you have that don't buy new cars, run up credit cards etc.
• Master tax breaks so that you can keep a larger share of your money... money saved is money earned.
• Don't try to keep up with your peers.
• Assume that you will have closings get delayed, sometimes by weeks.
• Assume you will have deals die.
• Keep your credit score high so you can access a loan / credit card / etc. if you need a short term assist.
• Expect the unexpected to happen.

Your health, relationships, stress and blood pressure will all be better if you are worrying about money. You will be happier. You will actually see a positive impact on your business.

So spend the check after it is in your account... not before. You will be glad you did.