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Agents crying poor is nothing new, but why does it seem that even the most successful agents still can’t get it together financially long term? When the commissions come flowing in, where do they go? Today we talk about the top 7 reasons you’re still living paycheck to paycheck and how to cure yourself from financial feast or famine!
Top 7 Reasons:
1. Agents don’t budget, project or plan. ‘I’ll save from my NEXT commission’.
2. It hasn’t been the #1 priority: Save 10% off every check, paying yourself FIRST, not last.
3. Lack of financial education on how to save, where to put the money, how much you should have, etc.
4. Belief that it’s ‘normal’ to be ‘feast or famine’, cash SPURTS versus FLOW.
5. Scarcity mentality, not abundance. The scarcity mentality believes that the money may not keep coming in, so you’d better ‘live for today’ and spend it now!
6. Always being behind on taxes, the perpetual ‘getting caught up’ syndrome.
7. Associating with friends and colleagues who are also living from check to check, making you think everyone lives like this.
So, after identifying the issues, we’re going take you directly into the best tactical, practical ways to solve these issues! Here’s our rundown on the top five ways we recommend you work on getting out of the feast or famine lifestyle and moving towards the financial position of your dreams!
1. ALWAYS save 10% (20% is better) off the top of every single commission check.
2. ALWAYS save 20% toward a dedicated TAX account, which does not co-mingle with your other savings or operations money.
3. Pay off high interest rate debt first. Become debt free.
4. Save a minimum of 6 months of reserves based on monthly overhead in a savings account. Ban yourself from debit cards and checkbooks on this account. Consider keeping cash in a safe. Make your savings more ‘real’ to you.
5. Educate yourself on Vanguard Index Funds, Health Savings Accounts, 529 college plans and other investment strategies.
