The Profit Is In Your Expenses

Loan.In keeping with January’s momentum theme, today’s post relates to your long-term momentum.

Meaning your ability to stay in business and adjust to market changes. We’ve had a phenomenal few years in real estate. It might not change any time soon, but it will change eventually. It always does.

The market doesn’t have to turn, though, for this topic to be relevant. In fact it’s more relevant in a good market. That is where you make the mistakes, the results just don’t show up until after the market shifts.

It’s also a fitting topic for January regardless of the market. Did you look at your income statement from last year and then look at your investment accounts and think, “For all that money, I should have more to show for it”?

That is usually followed by, “I better figure out how to make more money this year.”

While I’m all in favor of making more money, it’s the wrong place to start.

You need to start with your expenses.

One thing that often happens when income goes up is that we get lazy with how we spend our money.

In business you stop paying attention to return on investment and let yourself get caught up in the latest (expensive) marketing craze.

Personally, you eat out all of the time because it’s easy and your busy, even though it costs 4 times more. You stop paying attention to the value you are getting for the money you spend. Said the person who just paid a $350 cable bill.

Creating wealth actually comes from managing your expenses first.

Consider the opportunity costs. In the case of the cable bill, we can go down to Netflix, Hulu, and basic cable and save enough in one year to buy 4 plane tickets to Maui! Or we could invest the money, but baby steps here.

This doesn’t mean that you have to turn into Mr. Scrooge, but you do need to be more thoughtful about where you are spending your money and what you are getting for it.

In business this means, is the money helping you generate new business, or improve service that will help you retain clients and increase referrals?

In your personal life, does it make you happy, or add value either tangible or intangible. There is nothing so important on TV that I need to pay $350 a month for it. I can watch Netflix for $8 and be just as happy.

Commit to a 90 day profit plan. Each month review your bank and credit card statements and ask yourself for each charge;

  • Was this necessary?
  • Did it add value to my life?
  • Did it make me money?
  • Is there another way to do this that would cost less?
  • What if I didn’t have this expense?

It’s pretty eye-opening. You will also likely find subscriptions and other charges you didn’t even know where there.

It’s a process, just like thinning out your closet. You don’t have to do it all at one time, but each month look for ways to reduce expenses and increase your profit.

To your success!
Nicole

Want to join my mailing list and get more information like this and some exclusive bonus tips?

Click Here to Subscribe to my Newsletter!

Leave a Comment





Signup to receive Nicole's blog posts via email weekly:

Other Posts

It’s Your Responsibility To Shine Bright

April 12, 2024

Because when you do, you light up the world. I saw this quote on instagram and it seemed perfect for today’s post. A beautiful reminder that it is okay to be the shiniest version of ourselves. Not only is it okay, the world is better for it. I started a series on social media this…

Read More

What Comes First – Energy or Mindset?

April 5, 2024

They aren’t the same thing. Mindset is just that – working to change your thoughts, which is turns out is pretty difficult. Your mind is powerful. And yes, you can use your mind to think different thoughts and change your outcome. But at its core, your mind is wired to keep you safe, which it…

Read More

Don’t Confuse Negotiable with Charging What Your Worth

March 29, 2024

There has been a lot of confusion about what negotiable means lately. Fees are negotiable, your value is not. Fees have always been negotiable. Clients have the ability to choose agents based on the fee they charge, because not everyone charges the same thing. You have the ability to negotiate your fee, if you so…

Read More

Don’t Let Fear Get In The Way – Do The Thing, Take The Action

March 8, 2024

If you’ve been following along with the Secrets To Attracting Clients Masterclass Series, you know it’s been a big week. If you haven’t been – why not? It’s amazing, and it’s FREE through next Wednesday. So it’s not too late to join the fun. If you are new around here, Friday’s is when I send…

Read More

The Stories We Tell Ourselves

March 1, 2024

We all have stories we tell ourselves. Stories that affect our actions and decisions. We view them as facts, but in reality – they are just a story that we chose to believe. I’ve had a lot of conversations about stories this week and how our stories determine what shows up in our lives. And…

Read More

Because Together We All Get Better

February 23, 2024

I saw a funny meme on Instagram this week portraying the real life vs insta life version of being an agent. The instagram version showed a group of agents eating lunch together in designer clothes at a beautiful cafe. Versus the real life agent sitting alone, on the steps of a vacant house, eating a…

Read More

Breaking News, 5am Doesn’t Have To Be A Thing

February 9, 2024

I posted a reel on instagram this week that got a surprising amount of feedback. Surprising in how grateful people were to finally have someone admit the truth. You don’t have to be part of the 5am club to be successful. Did your shoulders relax just a little when you read that? I hope so.…

Read More

What If You Could Create Our Own Luck? You Can – I’ll Show You

February 2, 2024

You know those agents – the lucky ones whose clients magically show up, and they always seem to be having fun while posting sales and having a life. The type of agent you wish you could be – someday. What if  YOU could be that person right now?? On the outside, luck can look like…

Read More

Focus on Connections, The Rest Will Take Care of Itself

January 26, 2024

This is your reminder to keep going and trust that things will work. It’s easy to be impatient and want to know how the story ends. Because if we know that, then we can get there faster and avoid making mistakes along the way. But that’s not how it works. And sometimes the mistakes are…

Read More

Let THIS Be The Year You Find Your Tribe

January 12, 2024

This is one of the biggest things most agents are missing in their business. But if you’ve ever been a part of a great mastermind and have a solid tribe you know that it’s one of THE best things not only for your business, but for your soul. We aren’t meant to do this alone.…

Read More