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Financial moves to help you and your business


A global pandemic, record unemployment and political unrest may be fueling feelings of anxiety about the economy and your finances. Now could be a good time to reevaluate what you are currently doing and make changes to put yourself on a stronger financial footing.

“When we’re in uncertain times, you’re going to think about your income and commission differently, and you’re going to think about it more wisely,” says Leigh Brown, a real estate industry trainer and REALTOR® from North Carolina.

Her advice for riding out current and future financial storms? Adopt a 40-30-20-10 saving and spending plan.

The plan can help you weather the highs and lows, Brown says. Here’s how it works:

  • 40 percent – business expenses: This money is for the costs associated with running your business including customer relationship management (CRM) tools, signs, lead generation systems, sponsorships, etc.
  • 30 percent – personal spending: This bucket covers your home mortgage, car payment, food and other living expenses.
  • 20 percent – taxes: Don’t forget to set aside money for taxes or you’ll be hit with an unwelcome and hefty bill come tax time.
  • 10 percent – giving: This is where you allocate money for charity, tithes, etc.

Brown shared the financial strategy in her 2020 REALTOR® Legislative Meetings session, “Getting your financial house in order: evaluating your finances in a crisis.”

The majority of REALTORS® are independent contractors relying on the ebb and flow of commissions and that can bring uncertainty when markets change. But Brown reminds that real estate is cyclical and all disruptive markets end at some point.

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