Are You in Control of your Money or is your Money in Control of You?

At a seminar presented by T. Harv Eker on the Secrets Of The Millionaire Mind a crowd of nearly a thousand people were all asked to bring with them a $100 cash bill to the evening session of the seminar for an exercise to teach about mindset and the blueprint we all have about money. Everyone was asked to hold up their $100 bill and if you were unable to bring that bill with you then you were politely asked to leave this part of the seminar and demonstration.

A few of the seminar staff lined up in front of the stage with burning candles for the crowd to begin to line up and prepare to burn your $100 cash bill to prove to yourself you are in control of your money and money is not in control of you. A wave of emotion come over the crowd as some people were getting angry and others are started to cry and others were showing no sign of emotion of what they have been asked to do.

They slowly asked the crowd to stand and begin to line up in front of each of the staff members holding the open burning flame and let the emotions and energy build and build in the room. Then at the very last second they said “ok, everyone sit down and put your $100 bill away and start journaling what you experienced and what you felt through that exercise.”

So how would you feel about doing that? Would the money control you or would you be in control of the money? Would it make you mad, sad or feel nothing? Here are seven powerful tips from Clason’s novel “The Richest Man In Bablyon” and strategies for you to implement and be in control of your money in real estate and not the money in control of you.

  1. A Part of all you earn is yours to keep.
    The most powerful and most important message you read and hear from all experts in financial prosperity. “PAY YOURSELF FIRST.” Clason refers to this as “Starting thy purse to fattening” He uses the story of the humble egg merchant. If the egg merchant put ten eggs in his basket each morning and take out only nine by evening. Eventually what will happen? It will in time become overflowing. Or how about every ten coins you place in your purse you take out and use only nine. Your purse will fatten and soon will build increasing weight and bring you great satisfaction. Create a second account that is difficult to access and take that one egg, take that one coin and let it build and overflow over time. Just like this merchant you too create an account at a different bank and set up automated withdraw into this account, that can’t be readily accessed to build up your purse.
  2. Control your expenditures
    “BUDGETING” – All men are burdened with more desires than they can gratify. We have this false idea we can gratify our every desire. Clason states there are limits to your strength, limits to the distance you may travel, limits to what you may eat and limits to the zest you may enjoy. The key to controlling your expenses is taking the time to really identify your fixed expenses and eliminate or minimize your non fixed expenses. Discipline yourself to live lean and mean. Pay yourself your fixed expense amount at beginning of the month. Review Constantly – identify habits; implement cost savings i.e. basic cable or even no cable. Apply the same principle to your business accounts.
  3. Make your gold multiply
    “INVEST” – The greatest opportunity and wealth building strategy we all have is buying what we know… Stocks, Bonds, Mutual, Commodities, Mortgages, Rentals, Loans etc. Clason states a man’s wealth is not the coins he carries in his purse but it is the income he buildeth, the golden stream that continually flows into his purse and keeping it bulging. Amortization in wealth building is key… Example: Only $5,000 per year or $416 / month Invested. Over 10 years – at 5% becomes 66K at 15% becomes 116K… Over 20 years at 5% becomes 173K at 15% becomes 589K.
  4. Guard your treasures from loss
    “INVEST WISELY, CONSERVATIVELY” – Start by investing small amounts and learn to protect and grow those first. Clason said every man is tempted by opportunities where it would seem he could make large sums by its investment in the most plausible projects. So often we are urged by friends or family to eagerly enter these high return investments. Remember the risk or penalty is probable loss. TIP – borrowing to invest. Ask your advisor for their personal net worth statement. WORDS OF WISDOM – Invest only where the principal is safe and where the principle may be reclaimed if needed and where you will not fail to collect a fair return. Consult with wise men. Secure their advice and let their wisdom protect your treasures.
  5. Make of Thy Dwelling a Profitable Investment
    “OWN A HOME” – To a man’s heart it brings gladness to eat the figs from his own trees and the grapes of his own vines. To own his own domicile and to have a place he is proud to care of and put confidence in his heart and reward behind his endeavors. Discipline yourself to pay this home off. Blessings to the man who owneth his own home. Greatly reduces his cost of living and making available more of his earnings to build his wealth.
  6. Insure a Future Income
    “SAVINGS” – It behooves a man to make preparation for a suitable income in the days to come, when he is no longer young and to make preparations for his family should he be no longer with them to comfort and support them. It is important you maintain savings and have funds put away for many different reasons. Health, emergency expenses, major financial setbacks or economic down turn. You will get old. You may get sick. You will die one day and you should be prepared. TIP – wills, insurance life & disability.
  7. Cultivate, Study & Learn
    “BECOME A STUDENT” – Constantly improve yourself and become more skillful. Act on these principles and have the discipline to learn and implement them. Then begin to teach them to others including your own children. Clason reminds us “There is more gold in Babylon my students than you could dream of. There is abundance for us all.”

So there you have it, 7 powerful financial laws that made a difference with my control over money vs. the money having control over me. I challenge you to implement these strategies into your personal and professional lives and take control over the finances and win the money game.

 

How to make 2017 your BEST year ever in Real Estate!

Three Reviews to Increase your Real Estate Biz in 2017

As we head into the final month of 2016, for most of us, there will be some “downtime”. Downtime driven by both the holiday season, as well as a general slowdown of activity, especially after the first two weeks of December. This is an ideal time to start planning for 2017.  There are 3 reviews you need to complete before you can set a path for growth of your real estate biz in 2017. The three reviews include your transaction history, your prospecting efforts, and your personal marketing efforts.

Review your Real Estate Business Transaction History

Where do we start? We start with the past, we start with the review of what you’ve done financially, the actual transactions that you’ve completed, and all the elements associated with those opportunities.

Once you understand where you are, you can identify where you are going. Ask yourself, what was your average deal size last year, the year before that, the year since then? What clients did you work with? Which clients were the most attractive to you, both now and in the future? What were the average size deal with those clients provided for you? Where did you get those clients? What was the source? Was it a prospect call? Was it a website, off a lead, a company referral? Was it the same clients? Where were those clients and opportunities located? What market are you best to focus on moving forward? What product type have you really been successful for in the past and what product type is best for you moving forward?

Reviewing your Prospect Efforts as a Realtor

What was your financial goal for net income goal for 2016? Money that you take home for you and your family. That’s something we really care about. What did you achieve, and what was the goal? Hopefully it was greater than your goal. If it was less than your goal, maybe you set too high of a goal. I love goals that push you, bdownload-1ut be careful so they don’t demotivate. How many exclusives did you secure?  How many listings you got went to closings? You want to explore that. Make sure you understand some of the ratios financially of your meetings, to listings, listings, to close. Look at the numbers. Look back on your efforts last year, and see where those are. Define your average gross commission income. What was your average net commission per closing? Of the listings/representations/assignments you secured, how many were unsuccessful?

When it comes to your clients, think about your top five clients. When we say top five, people go, “Okay so these five made the most money for me, they’re my top five.” Fine. That’s how you want to define top five, look at it that way. Some say, “No, top five really means those that provided me, and will provide me the greatest opportunities moving forward.” In 2016, this may have been one deal, but it’s going to lead to moredownload-2 deals down the road. That’s going to be a top client for you, or a client that always gives you multiple opportunities. Same client opportunities, or refers you. All they did is one or two deals with you maybe historically, yet they’re one of your raving fans. Therefore, they’re your top client. Identify your five top clients based on your parameters.

Finally look at your prospecting efforts. Prospecting is a disciplined act of asking for business. Think about what you did to specifically ask for business. Look back at some of the quantitative, and qualitative aspects of your prospecting. How many prospecting meetings did you hold in 2016? How many calls to you attempt vs. complete, and how many prospect letters (not emails) did you send?

Review your Personal Marketing Efforts

Prospecting is hard enough when folks know you, or at least heard of your company. Prospecting without a personal presence is downright difficult. Your personal marketing efforts will reflect strongly on you prospecting results.  Focus on three elements of presence, or personal marketing. Personal, Physical, and Digital. Upon your review of your personal marketing efforts in 2016, ask yourself how many personal meetings did you have from a marketing perspective? These are meetings to get to know people. These are not prospecting meetings. These are relationship building opportunities. Maybe it was going to a conference, or going for a drink with the guys, or whatever it might be. How many personal marketing meetings did you hold? Look back at your calendar. This is vital to growing in 2017. Physical marketing efforts consist of tangible items you have mailed, gifted or sent. From the physical side, mailing side, how many times did you mail out? How many times did you send out post cards, or flyers. How many gifts did you send, or articles you shared. Again, look at your calendar, look at your marketing efforts, look at your budget, look at your expenses.

Lastly, think about the digital side. Yes, the tweeting, the blogging, the LinkedIn groups, Facebook interactions, that you actually participate in. Just because you’re a member of a LinkedIn group, and you never participate that does not count. That’s probably 95% of folks out there. Think about the digital efforts. What did you do digitally? Even e-mail blasts, and newsletters.

As noted, the first step in any process of change is always the biggest. Reviewing your transactional history, prospecting efforts and personal marketing activities will take you some time. Potentially several days. But don’t forget you will have several days of “downtime” in the weeks ahead. You can either review and then implement change, or simply do what you have always done in the past. You know, and we know that positive change, and income growth, are not products of simply doing the same thing year after year.

Commit to making 2017 your best year as a REALTOR ever. I dare you!