How to Properly Manage Your Money Like the Rich

As an agent, one of the most challenging things you will have to grapple with is how to manage the money you earn from your business. While most agents spend most of their time consuming content related to selling and closing deals, it is what happens after the deal has closed that will make a lasting difference in an agent’s life. Think about it for a moment. If you close a million dollars’ worth of sales each year but do not manage your money effectively, you will need to keep closing million-dollar sales years for you to stay afloat financially. Unfortunately, this focus on only selling is what prevents most agents from progressing faster than they can up the financial ladder. In this article, we look at three ways the rich manage their money.

Money is a Tool – Nothing More, Nothing Less

The rich know money is just a tool, and they treat it as such. They know that money is amoral, has no power but that assigned to it and is something that can either be used for good or otherwise. By viewing money as a tool, the rich know that in the same way a hammer can either be used to tear down a house or build one, so can money be wielded to do destructive things or constructive things. On the other hand, the less affluent mistake money as an end rather than a means. The moment money hits their personal account, it is time to spend. In most cases, this pending will be on depreciating assets and experiences that do nothing to preserve and multiply the money received. To be an astute manager of money, you must internalize one simple fact: money is a means and a tool, nothing more, nothing less.

Money is Meant to Be Left Behind, Not Consumed

Lurking behind the number 5-15-80 is a profound reality that defines the lives of everyone on the planet. 5% of the world’s population has generational wealth. These are people who have inherited wealth and have a significant net worth that they will pass on to the next generation. 15% refers to those who fall in the middle-class category. These are people who work for their money, make enough to live a comfortable life and have a high likelihood of retiring with just enough to live out their sunset years. 80% is everyone else. This segment represents those who will have to work well into their retirement years to stay afloat financially. There is also every likelihood that they will end up as a ward of the state or rely on their children. The rich think of money as a resource to pass on to the next generation, not one to be consumed all within one lifetime.

Split Your Money Before Spending It

For most agents, any check that comes in is banked in a personal account. They then go on to draw money from this account for tax purposes, home use, and business use. This is why it is so hard for most agents to account for the money they receive. They know they are making money, but they can’t seem to make any significant financial progress. The rich, on the other hand, split every check that comes in, so the money is earmarked accordingly before a single dime is spent. To make things easier, this split is never done based on the amount received but on predefined percentages. By doing this, it is possible to consistently, let’s say, save money, whether you receive a hundred-dollar check or a million-dollar check. FREE PDF LINK