Stop Overspending: The Key to Financial Stability Revealed!

4 Apr 2024 · 1 min

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In this segment, Leigh Thomas Brown advises real‑estate agents on a disciplined way to handle commission checks to avoid overspending and build financial stability. She proposes a three‑account system applied to every commission check: 40% of the check is deposited into a business account to cover operating expenses and protect the business, 30% goes into a personal account for living expenses, and the remaining portion is reserved for savings or future lean periods. Brown emphasizes that real‑estate income is cyclical, so keeping personal spending lean and consistently allocating a fixed percentage to business and savings helps agents stay financially resilient during downturns. The tone is conversational and instructional, aimed at encouraging agents to adopt a conservative, systematic approach to money management.

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So now we've got a commission check coming in because you sold something. Woohoo! So here's how that works. This business account is 40% of your dollars. So that imaginary commission check, let's say it was for $10,000, $4,000 goes into this account. What that's going to do is stop you from overspending. Because in real estate, a lot of y'all, and I love you, you see a $10,000 account come in, check come in, and you say, "I have $10,000 to spend." No, no, no, no, no, no, no, no. We don't spend every dollar we bring in. No, we don't. We are going to be really smart and very thoughtfully conservative with our dollars. So 40% of that commission check goes in here. By the way, this is every check that comes in. That second account, that personal account, gets 30% of your dollars. Now you're thinking, "But Leigh Brown, that means I'm living pretty tight." Mm-hmm, yes, if you're in real estate, because we're a cyclical business, you're going to have lean times and you're going to have plenty times. So we're going to keep that personal account always in a lean space.