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Are you financially prepared to make the jump to real estate? We, The How2Guys, help realtors transition from being a new or part-time agent to a full-time agent. While we typically focus on helping realtors prospect consistently by teaching them how to build better habits. Another component of this transition is certainly financial. It would be best if you had some financial security while making the leap full-time into the profession. To help you with this aspect of the transition, we want to provide three ways to spend money to transition to a full-time agent. Notice, I said, “spend.” This is very important because most realtors focus on saving when thinking about transitioning to a full-time agent. With this specific goal in mind. Which is to transition to a full-time agent. It's important to note that saving money alone to be a full-time agent is short-sided because it can leave you in a vulnerable financial position. If you don’t generate the GCI you intended to achieve during the period you saved for, you can continue to overspend as if you had income coming in from your corporate job. Putting yourself in a difficult financial situation. Instead, I recommend creating a spending plan that coincides with your realtor lifestyle and can be altered based on the revenue that you generate. Alright, let's start with the first way to spend to transition to a full-time agent. 1. Have the right mindset - This is all about spending extravagantly on the things you love, and cutting costs mercilessly on the things you don’t. In the book, I Will Teach You to Be Rich by Ramit Sethi. He shares a story about a friend that spends 21,000 dollars a year when going out. The author goes on and breaks down the math on how his buddy can spend so much on going out in a year but emphasizes what his friend does not do as well, such as not taking vacations and having very little personal time because works all the time. His only free time is on Friday and Saturday nights, which he looks forward to enjoying weekly. The key to having the write spending mindset is figuring out the one or two things you should spend your money on. That makes you feel excellent and then cut out of the rest. This guilt free-spending, as the author calls it, should ideally make up anywhere from 20-35% of your take-home pay. 2. Determine your fixed cost - These are things like rent, utilities, debt, etc. This should take up no more than 50-60% of your take-home pay. Take a look at your credit card and bank statements over the last two months and identify your fixed cost. Then calculate to see if they make up 50-60% of your take-home pay. If not, then you should start thinking about how you will bring that down. 3. Real Estate Spending - This money goes toward real estate expenses, including gas, tolls, food for open houses, tools, and resources like CRM's, educational courses, Facebook ads, lead generators, and any other unexpected real estate expense. This should make up anywhere between 15-25% of your take-home pay. I would recommend that you open a zero-fee savings account and deposit real estate funds from this account to separate those expenses. We use Ally Bank, but there are other options as well, so do your research. To get started, take the last two month's expenses seen on your credit card or bank statement. Then subtract these amounts from your take home pay, and you'll have a sense of what you have leftover to add to any of these three ways of spending. Suppose you don’t have any money leftover and find yourself not able to meet these spending criteria. See what expenses you can cut out or start with a smaller real estate spending plan, and as your business grows, expand that category's spending. The key here is not to create such an extreme plan that you can't maintain it for the long term. By going through these steps, you will gain the self-awareness to develop the spending structure that will assist you in your goal to transition to a full-time agent. Listen to full episode www.how2guys.com/podcast This episode is sponsored by our MORNING ROUTINE PROGRAM .... which provides you with 3 EASY steps to dominate your morning (Grab it CLICK HERE) Not having the right Morning Routine is killing Realtor's businesses! According to NAR, 87% of agents feel frustrated and quit after 5 years in the business. The best way to prospect consistently is to make it a HABIT in the MORNING! Look, it doesn’t matter where you are in your business. You can be a new agent, a part-time agent, or can have 5 to 10+ years of experience as an agent. If you want to take your business to the next level, it ultimately starts in the MORNING! You either dominate your morning, or it dominates you! This program will help you stop procrastinating and get you to prospect consistently in the morning. CLICK HEREto grab it, it’s FREE CLICK HERE) Subscribe & Review Are you subscribed to our podcast? If you’re not, we want to encourage you to do that today. We don’t want you to miss an episode. We are adding a bunch of bonus episodes to the mix and if you’re not subscribed there’s a good chance, you’ll miss out on those. Click Here to Subscribe via Your Favorite Platform Now, if you’re feeling extra loving, we would be really grateful if you left us a review, too. Those reviews help other agents find our podcast and they’re also fun for us to go in and read. Just click here to find your platform and review, select “Ratings and Reviews” and “Write a Review” and let us know what your favorite part of the podcast is. Thank you! 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