While many real estate professionals would like to make more money each year, they may find that their bank accounts aren’t filling up as quickly as they’d like, despite closing more deals. They may scratch their heads and wonder where all the money went. Even the best salesman can find himself behind the eight ball when it comes to making ends meet and building a successful business. When you don’t have the luxury of a steady paycheck, it’s important to make the money you do earn stretch to cover the lean times. Although creating a budget is important, it’s only part of the solution. The other part is tracking your expenses. Keeping track of what you spend means you can keep more of what you earn, which in turn helps your business thrive financially. It’s important to develop a tracking habit so that when you get busy, you’re still able to make time to record and update your expenses.
3 Reasons to Start Tracking Your Expenses Today
1. Know where you’re spending your money. Not only does this shed light on what happens to your money once you deposit your commission check, it also helps you see where you can make cuts if you need to. For example, if you notice you’re spending a considerable amount of money going to your favorite coffee shop several times a day, maybe cut back to going once a day, and if you need to make further cuts, go once or twice a week. Seeing where your money is going helps ensure you have money when you need it the most.
2. Control your finances. Once you know where your money is going, you can have more control over it and can save more of it. Tracking your expenses is part of the overall financial picture. When money is tight, you know which expenses to reduce or eliminate. And when your accounts are flush, you can accurately assess how close you are to achieving your goals and know how much to move to investment accounts to grow more money.
3. Achieve financial success. While it helps to set financial goals at the beginning of the year when you set goals for your business and other areas of your life, tracking ensures you’ll reach them. It helps you develop the habit of noting what you make and what you spend so you’re more conscious of how close you are to reaching your goals.
Referral Maker® CRM helps you maintain a clear picture of your finances by making it easy to track your finances. Set goals, track expenses and income, and import your historical expense data to understand the full overall state of your finances. Visit ReferralMaker.com to learn more.