The reason why thousands of real estate agents got into the business was they want to make more money. And that’s why one of the things I am sharing is how to set financial goals. “I want to make more money” is not a goal; it’s a half-assed statement that’s going to keep your intentions vague and your bank account on the line of “safe.”
Do you want “safe” or do you want “comfortable and secure?” The sad fact is that 80%of all people will end up flat-broke when it comes time to retire. That doesn’t have to be you. That’s why in this week’s blog, I’ll show you just a bit of the type of information about how to set financial goals and put practices in place to achieve them. Once you know what you’re aiming for, you’re no longer shooting in the dark. So let’s dive right in and shed some light on your finances.
How to Set Financial Goals, Step 1: Find Your Cost of Living.
This one is very simple, but unfortunately, few real estate agents take the time to do this. All you have to do is add up the total costs of everything it takes to run your life:
Rent/mortgage + utilities
Marketing and business expenses
Car payment
Food and medications
Fun and entertainment
Taxes
Savings
Add up any payments or regular expenses you can think of, then tack on an extra $1,000 because who knows what could happen in life. You could get sick, or your car could break down or you could end up spending a little too much on dinner. This is your Survival Goal. It’s what you need to make consistently every single month just to stay above water. It will not give you a better life and it will not allow you to ever retire.
How to Set Financial Goals, Step 2: Your Good Life + Dream Goals (Phase 1)
Let’s take it up a step. What would it look like if you were closing a few more deals and living a realistically better life? Think about that next-step-up home you want to own. How much does it cost? What about a more desirable car? What would your vacations look like? Get in a relaxed mode and visualize it. Then get on the computer and look up the actual prices. Add them up. Do everything the same as you did with finding your survival goal, then tack on an additional $3,000. This is your Good Life Goal. Now take it even a step further. If everything went perfectly for you in the next 12 months and the money was flowing in, what would your business look like? How much would you be spending on marketing with all your new lead gen sources? Where would you be living? This is your dream life, and once you know how much it costs, you have your Dream Goal.
How to Set Financial Goals, Step 3: Adjust for the Future.
It’d be so nice and easy if we could just stop at step 2 and live in dreamland, wouldn’t it? Unfortunately, that’s how you become a member of the 80% of agents who will be working until they die. What you need to do now is find the REAL numbers it will take to live those life goals now and in the future. Do a 10-year forecast of your life, imagining that at the end of these 10 years, you’re going to step away from your business and just live. Write down all three goals, then multiply each by 12 (to bring them to a yearly amount), then multiply them by 10 (for ten years). Let’s say your Good Life Goal is $125,000 a year. Over 10 years, that means you’ll have made $1,250,000. Now let’s start cutting this down.
35% goes to taxes 25% to running your business 25% to running your home Leaving 15% that you either saved or invested
Going by this, at the end of 10 years, you can now comfortably live your same lifestyle for a remarkable ONE YEARand some months! Pretty scary huh? That’s why you need to start thinking about these things now. This step is not over until you find a 10-year number that you’re comfortable with. You either need to start cutting down on some of the expenses or raise the number entirely.
How to Set Financial Goals, Step 4: Choose Your Who and Why.
I’m not perfect; I’m human, just like everyone else. And that means I’ve found that I’m capable of breaking the promises that I make to myself. But what I’ve also noticed is that I NEVER break a promise that I make to others – especially those I care about. Most people won’t tirelessly grind day-in and day-out just for themselves, but they will do it for their spouse, their kids, their parents, or their coach. You need accountability. I need accountability. We all need it. It’s the cornerstone of greatness. Find yours. Don’t skip this step.
How to Set Financial Goals, Step 5: Decide Where Your Money Will Flow.
We’ve already talked about breaking your money down into categories. If all that money stays in one account, then those are just invisible boxes that will stay in your head and soon fade away to nothing. I sincerely hope that you’re not depositing your checks into a personal checking account. If you are, stop that now and open a business account. I’m not your financial advisor, so the type of account you choose to open is between you and them. But once you have that business account open, you need to start opening a few more accounts and moving the money appropriately right away into each:
Tax account Home account Fun account Savings account Investment account (Don’t make the mistake of not buying enough of your own product) Business expenses account
How to Set Financial Goals, Step 6: Make a Commitment.
You’ve decided what you want, refined it, chosen a strategy to get you there, set up accountability, and put your banking system in order. Now I want you to make a written and verbal promise to those holding you accountable that says you will follow this plan and achieve these goals by doing everything you possibly can. It’s time to become the best possible version of yourself because now your ass is on the line.
Happy New Year Agents! I put together a list of 20 tips to help you achieve a positive 2022.
1. Stay Positive. You can listen to the cynics and doubters and believe that success is impossible or you can trust that with faith and an optimistic attitude all things are possible.
2. Take a daily “Thank You Walk.” You can’t be stressed and thankful at the same time. Feel blessed and you won’t be stressed.
3. Eat more foods that grow on trees and plants and less foods manufactured in plants.
4. Talk to yourself instead of listen to yourself. Instead of listening to your complaints, fears and doubts, talk to yourself with words of truth and encouragement.
5. Post a sign that says “No Energy Vampires Allowed.” Gandhi said, “I will not let anyone walk through my mind with their dirty feet,” and neither should you! Watch This.
6. Be a Positive Team Member. Being positive doesn’t just make you better, it makes everyone around you better.
7. Don’t chase success. Decide to make a difference and success will find you. [ Tweet This ]
8. Get more sleep. You can’t replace sleep with a double latte.
9. Don’t waste your precious energy on gossip, energy vampires, issues of the past, negative thoughts or things you cannot control.
10. Look for opportunities to Love, Serve and Care. You don’t have to be great to serve but you have to serve to be great.
11. Live your purpose. Remember why you do what you do. We don’t get burned out because of what we do. We get burned out because we forget why we do it.
12. Remember, there’s no such thing as an overnight success. Love the process and you’ll love what the process produces.
13. Trust that everything happens for a reason and expect good things to come out of challenging experiences.
14. Implement the No Complaining Rule. If you are complaining, you’re not leading.
15. Read more books than you did in 2021. I happen to know of a few good ones. : )
16. Don’t seek happiness. Instead live with love, passion and purpose and happiness will find you.
17. Focus on “Get to” vs “Have to.” Each day focus on what you get to do, not what you have to do. Life is a gift not an obligation.
18. The next time you “fail” remember that it’s not meant to define you. It’s meant to refine you.
19. Smile and laugh more. They are natural anti-depressants.
20. Boost your immune system and health. Eat wild salmon, turmeric, blueberries. Take vitamin C, D and zinc.
Enjoy the ride. You only have one ride through life so make the most of it and enjoy it.
Our relationship with money is formed at a young age. And contrary to popular belief, it’s not our management of our money, but rather our relationship with money that keeps us from truly breaking through and achieving financial independence. This is great news to the 73% of N. Americans who recently ranked their finances in a Creditwise survey as the most significant source of stress in their life. And is it any surprise? According to Bankrate, 63% of N. Americans don’t have enough savings to cover a $500 emergency. It’s clear that it’s more important than ever for us to look at managing our finances from a different angle. If we can learn how to better prioritize growing our finances, we can significantly reduce our stress.
Acknowledge that money is energy. – We put a lot of weight on money because of its association with survival, safety and security. All of which are basic needs for us as human beings. But because of the connection to survival, we make money mean a lot. In reality, money is a neutral currency. It isn’t bad, it isn’t inherently good. It’s neutral. If we can accept this idea that money is just another form of energy, we have the ability to then use money to align with our values. This is where so many people are going wrong. They’re spending on autopilot and not consciously considering where they want to put their money. Neuroscience tells us that our conscious mind plays a very small role in how we run our lives. This means we are running our lives the majority of the time from our subconscious mind which is where we store beliefs and habits that we have preprogrammed. A practical way to make this distinction to using money consciously is to ask yourself the question, Is the way I spend and save my money currently aligned with my values?
Identify the money beliefs from childhood. – What we learn about money up until age 7 is most impactful. What your parents did to earn money and how money was spoken about in the household can lead to shame associated with money (which can impact your spending and saving behavior.) For example, if you were told that the wealthy person in your community was “greedy” and therefore “bad” by your parents, then your subconscious mind would associate being wealthy with shame and an inability to be loved. One of my clients had a mindset belief that she was only able to make money if she worked really hard for it. This belief meant that she associated hard work, long hours and blood, sweat and tears with success. She had told herself this was the only way she was able to earn. In doing so, she was blocking off the flow of money in other ways. For example, clients that fell into her inbox through referrals asking to pay in full, or going into a launch and having clients come in without her having to push hard for the sale. When my client recognized this and actively started to tell herself, money comes easily to me, she was able to see all the ways she could create more money doing less, and has since streamlined her business model and added $100k in annual revenue.
Move beyond your programming and create your own money blueprint. – Moving beyond your current money stories starts with awareness, which occurs in the prior step. Once you understand your conscious mind, you then have the ability to change these beliefs. The final step is to ask yourself a series of questions to cement the new beliefs and create new habits. These can include when I am financially secure, what do my days look like? One of my clients came to me after being in business for a number of years, and was generating money through many different offers in her business. She was tired, business felt hard and she had lost faith that she could build a profitable business. The problem was that she had created a story in her mind that the business model she most wanted wasn’t possible for her until she was earning at a certain level. By shifting that mindset, she then recognized the physical changes required within her business model, and is now up 300% in revenue for 2021, working less than she ever has in her life.
When I am financially secure, where do I invest my money? – Personally, this question highlighted to me that I was living my life with the belief that I couldn’t invest or create opportunities to grow my money until I earned a certain amount. It showed me that I was telling myself a story that only wealthy people are prioritizing ongoing investing, which is counterintuitive. What habits can I incorporate into my day to understand my money and how it’s working for me more effectively? For many of my clients, they avoid their money because they don’t understand it. Having a growth money mindset means prioritizing learning, and being open to learning about money. That might look like checking your cash position every morning, or setting a bi-weekly date with your partner to discuss your household financial position. By understanding your money mindset blocks, you’ll be far more open to create habits you actually stick to. It’s more important than ever that we open a conversation about our relationship with money. By aligning the way we use money to our values, and getting clear on our subconscious programming from childhood about money, we can create new behaviors and open ourselves up to creating more wealth. If you take the time to understand your resistance to money, you’ll be much more likely to create healthier habits and practical strategies that you practice consistently.
With your new mindset, you’ll be well placed to seek out the advice and counsel of an accountant or financial advisor who has the expertise to help you level up your finances and start building wealth.
1. Treat Yourself with Some Self Care. – One of the most important goals that you need to achieve is Self-care. It is necessary for every professional that they must take care of themselves first, both physically and psychologically. This will help make sure that they are sharp and ready to take on any and every challenge that their work-life throws at them.
2. Reconnect with Old Peers. – When you are working in a professional paradigm, you need to understand that every person that you know, or meet is a potential asset that you need to keep in your arsenal. The best asset is your old classmates and peers from your schooling days. Why? Because they are most likely a part of the professional paradigm as well, and they can help you connect with numerous potential clients, no matter what your area of expertise is. So keep those peers close as they can prove to be quite beneficial business connections for you.
3. Revisit Your Career Goals Every Year. – You must have set your career goals when you were in college, or even earlier than that. This is the normal scenario for a lot of professionals out there, but what will set you apart from all of them is when you would revisit all of the career goals every single year. Many people suggest revisiting these goals every 5 years, but what this year has taught us that you can never wait that long to make some major life changes that actively shape the way you live your work and personal life because it can all change without a moment’s notice.
4. Leverage a Task Scheduling App. – If you want to achieve your bigger work or personal goals this year, you need to start using a task scheduling app, such as nTask. A task scheduler can make your work easier in planning, organizing, reminding, executing, and reporting on the tasks set by you. nTask app is available on iOS and Android devices. It will keep you in the loop of your goals so that you won’t miss anything. The task scheduler app such as nTask will help you create tasks, set due dates, give priorities, get notifications, assign tasks to team members, manage workflows with Kanban Boards, and visualize the progress with the help of a Gantt chart.
5. Maintain a Proper Sleep Schedule. – Sleep is not just for beauty; it is the most important personal trait that you have to gain control over if you want to keep a hold on your sanity while performing so many professional tasks. Maintaining a proper sleep schedule is a prime example of a common entity among personal and professional goals. That makes it a very important work goal that you need to achieve in 2022.
6. Keep Funds Ready for Emergencies. – One of the most important things that the pandemic has shown us that no one’s job is secure. Every one of us is disposable and you can be evicted from the house you called home for so many years, in a matter of days. This is why you must set a personal and work goal to save money whenever possible. That money will help fund your personal and work life in an emergency.
7. Keep a Daily Journal. – Many of us already have this amazing habit where we document every happening, or write-up the most relevant of happenings from our day into our personal Journal or diary. This helps us keep a record of what our shortcomings and positive aspects have been over a long period and can help us to make different personal and work-life decisions in the future. The majority of experts recommend journaling for 5 minutes in the morning and at night, but most of us cannot do that even once in the day. So, if you cannot get yourself to do the daily writing, you can try doing it weekly, but the problem with that is that you cannot remember so much from your day when it has been 6 days. So we would recommend doing it daily and maintain consistency.
8. Travel More. – One thing that you MUST do is to travel. Our lives have been made quite stagnant by our work priorities, even without the help of the pandemic, and the only way to liven things up is to get out of your normal routines and travel to different locations where you are bound to learn some new things. These new things can be beneficial to both your work and personal life, in addition to throwing you into an effervescent state known as ‘Holiday High’.
9. Keep a Healthy Diet. – Since you are working from home right now and even when you go to the office after this nightmare is over, you need to make sure that you keep a healthy diet full of fruits, vegetables, and meat if you are into it. This diet will provide you with all of the different nutrients and elements associated with physical and mental health, which will strengthen your immune system and make you more active and healthier for the personal and work challenges you face every day.
10. Keep a Gratitude Journal. – We have already talked about keeping a Journal but that was to write-up all of the different happenings in your day. This journal is establishing a more positive outlook on your life. A gratitude journal is a great way of recalling different aspects of your life so that you can have a more positive attitude while tackling the different challenges that you face in your personal and professional life.
11. Maintain a Morning Routine. – Whenever we look at the most common traits among all of the successful entrepreneurs and businessmen people around the world, the first thing that pops up is their morning routine where they wake up early and start their day way before anyone else. This is because the most productive hours in your day are when you wake up and when those hours are in the morning, you get to enjoy the peace and serenity of the morning before the hustle and bustle of the day consumes you. This is why maintaining a morning schedule is an excellent work and personal goal that you have to achieve in 2022.
12. Read More. – Reading has always been an amazing personal trait. It enhances your vocabulary and helps stuff your mind with some amazing facts about life and work, and also many other things depending on the books that you are reading. Experts suggest that you should read at least 12 books, one for each month. Some people already read more than double that, but it is a good start for people who are not habitual of even reading a single book in a whole year.
13. Arm Yourselves with More Skills. – The professional paradigm is a war. You and every single one of your peers is competing with each other, and just like in war, victory is always given to the people who have the best arsenal under their command with the mind to wield it. This is why you need to arm yourselves with more skills because, in the professional paradigm, the best weapon to be victorious is a diverse skill set.
14. Drink More Water. – The next item on the list to keep yourself hydrated. You do not need us to tell you how important water is, so we’ll skip the lecture. Just remember that keeping yourself hydrated is useful for keeping your mind and body fresh, which will help you defeat all of the challenges that your personal and professional life put in your way.
15. Workout. – Fitness is a drug that is universally accepted as the salvation for the human race – i.e. if we want to defeat the rampant obesity that is all around us. For many of us, that reality is not clear enough and they are still prone to left swipe the option to choose a healthier life for them. When this is the case, then workout might not be for them. What they can do is that they can do other activities that can keep them fit and healthy like meditation or hiking. Something to keep them moving and keeping them releasing those endorphins so that they can have a fresher and healthier personal and professional life.
16. Maintain a Clutter-Free Environment Around You. – One of the best things that you can do to keep your mind away from distractions and also keeping the environment around you pleasant, is to make sure that the everything around you in perfect symmetry, and if you’re not prone to OCD cleaning then you can just keep your surroundings clutter-free. This will keep your mind away from all of the distractions that a cluttered workspace or home can fester in your mind. Declutter your home, be happy.
17. Spend Less Time Online. – The Internet is everyone’s friend/ enemy in the 21st century. It is a complicated relationship that can only be fixed when you can control your urge to being online 24/7. You need to try at-least to distance yourself from the internet because the constant flow of information has made us all immune to all of the stuff that is happening around us in our lives. To do that, you need to spend more time outdoors camping or doing some physical activities with your friends and family that will not only keep you happy but also keep all of the people in your life happy, who have been avoided by you because you were busy on the internet.
18. Get Rid of a Toxic Habit. – The next item on the list is removing a toxic habit from your life and let’s face it, we all have something attached to is that we want to get away from. It can anything like smoking or sleeping a lot, and we understand that you have tried to get away from it but failed to do so. Just remember that life isn’t fair to anyone and you have to keep trying and trying until we get exactly what we want. Don’t give up and one day you will succeed.
19. Maintain a Monthly Budget. – If you are reading this article, then you are someone who is independent and wants to keep their boat from capsizing in the ocean of bankruptcy. To do that, you need to maintain a monthly budget and take control of every little expense in your life. This will make sure that everything you earn and spend is documented and you don’t empty your pockets while spending money on unnecessary things that provide no benefit to your personal and professional life.
20. Join a Club. – You need to make a list of all of the different interests and hobbies that you have and find out which of them is your favorite. When you have done that, find a club whose workings match your hobby and join it. Joining a club is a great way to meet people who have the same interests as you, which can help you grow meaningful connections and make sure that you have a safe space to talk about your thoughts and hobbies. It also helps you make some amazing new friends with whom you can do a lot of fun activities in your free time.
21. Create a Work-Life Balance. – Last but not the least, you need to make sure that both aspects of your life, work, and personal life, are balanced out and either one of them doesn’t smother the other one. Doing so will assist in removing all the burdens that you are currently carrying in your work life or your personal life, and ensure that you are of the sound of mind to tackle any challenges that your life throws at you.
22. Improve your time management skills. – Time is everything — you have to live and die by it. There are a lot of different people in the industry who will fill you in on different solutions to all of your problems. Especially if those problems are related to deadlines, completing milestones, and such other things. If you don’t have the skill of time management in the bag, you really can’t save yourself from the fast-moving storm that is going to swallow you whole. Make everything count. Do a retrospective of yourself and see where it leads.
23. Improve your emotional intelligence. – If you want to approach anyone, whether it is a potential partner in life or a potential client, you need to up your EQ game. EQ is emotional intelligence. What it does is that it makes you a little more responsive and accommodating about your emotions and the emotions of the people around you. The next time you want to sign a client or invite someone to coffee, make sure that you understand their emotions and answer them with the same depth and gusto as they do unto you.
24. Always find new challenges to complete. – Finding new challenges is a great way to make any job role exciting and fulfilling. It is a great way to make sure thatyou don’t have a boring day at the office. Ever. The problem is that finding new challenges and facing them head-on is not possible for all of us. Many of us have problems interacting with the challenges that are already in our lives. We understand that. That’s why we recommend that you take things slow and find out what your strengths are. Once you’re done with that, you will be aware of the things that you can do and what challenges you can take on. This will help you and your organization to flourish beyond belief, whenever there is a change in the wind. Finish 2021 strong and start 2022 new and alive!
When I began my real estate career at only 21 years of age my father and partner at the time was an amazing mentor to me on money management early in my career. Those lessons I learned were so valuable for me and still guide me 29 years later. What are your money saving practices? What are you financial goals for 2021? “I want to save more money this year.” “I want to become debt-free.” “I want to start saving for retirement.” These are all worthy goals, but that doesn’t mean they’re effective. Perhaps, like countless other people, you set goals like these year after year, but you make little or no progress. Strive to make 2021 the year you finally achieve your financial goals by keeping these do’s and don’ts in mind.
DO rely on systems, DON’T rely on willpower. – Many of us rely on willpower to bridge the gap between the goals we set and the things we want to accomplish. But this isn’t always effective. Instead of relying on your willpower alone, set up systems to help you actually achieve your financial goals. Instead of just “trying harder” to stay on top of your bill payments and set money aside for savings, for example, set up automatic bill pay and weekly automatic transfers from your checking account to your savings account. Systems like these help ensure your financially responsible intentions don’t become an afterthought.
DO focus on habits, DON’T focus on outcomes. – Refocusing your money goals on specific daily, weekly and monthly habits—rather than distant, vague outcomes—could help you follow through. For example, instead of setting a goal to save up for a family vacation this year, turn your focus to the habit that will help make it happen, like transferring $50 to a dedicated vacation savings account at the start of each week. Clearly defined habits are essential in helping us make real progress.
DO stay flexible, DON’T be rigid. – Another common pitfall is failing to update our goals as we experience changes to our circumstances throughout the year. Goals are dynamic, and therefore our approach to them must be flexible. It’s perfectly fine if some of your past goals are no longer relevant. And it’s normal for new goals to take precedence over previous priorities. But as that happens, it’s important to update your financial systems to reflect those changes. Schedule time on your calendar once a month to review your financial goals.
DO stay committed, DON’T try to be perfect. – Rather than giving up for failing to be perfect when you make money mistakes, give yourself credit for staying committed in spite of your missteps and the challenges you face. You don’t have to be perfect to achieve your money goals, but you do need to remain committed to the process. Recognizing the positive progress you have made can help you do just that.
Here are a few of my recommended reads for those looking to learn more with their money habits:
Making money requires having an action plan.
