3 Budgeting Tips Every Real Estate Agent Should Follow
Sticking to a planned budget helps real estate pros get through slower months, set aside money for marketing costs and taxes, and invest in their future retirement.
NORWALK, Conn. – The income of most real estate agents is commission-based, so budgeting is a crucial skill to develop.
Real estate agents can use a variety of approaches to create a budget, but once they make one, they need to adhere to it. This will help them get through the slower months and allow them to eventually invest in their future retirement.
Saving money for marketing costs is also important. This involves setting aside sufficient money to effectively advertise the agent's services so he or she can continue to bring in new clients, land new listings and generate a steady stream of income.
Finally, it is essential to set aside money for taxes and not underestimate the amount of annual income taxes. Agents should pay their estimated taxes each quarter, otherwise they will end up owing a large amount at the end of the year.
Real estate professional Kerstin B. says, "I always set aside 35% of my earnings from each transaction to pay for taxes. My last transactions of the year go to license and desk fees for the upcoming year to reduce the stress of where to get fees when they are due. I also donate a small portion of each sale."
Source: RISMedia (08/16/20)
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