"Consult
The Coach" Archives
Stuart Kaufman, MS, MBA
“The Real Estate Coach”
Summer
2006 - Volume 6, Issue 2
Q.
Dear Coach:
I
am constantly stressed trying to manage my checking
account, finances and taxes. I don’t update
or reconcile my checkbook on a regular basis. I really
dislike doing all this money management stuff. I am
never quite sure how much I money I have, how much
money I have made, or how much money I have spent
or owe. As long as I have a positive balance in the
bank, then I figure I am doing alright. What do you
suggest to deal with my stress about my finances?
Signed,
Stressed
about Finances
A.
Dear “Stressed about Finances”,
Financial
(mis)management is a common challenge faced by many
Real Estate Agents, as well as other independent business
people. Managing our money is an area that most of
us were never taught in school or at home. As a result,
we simply don’t know how to do it. Some of us
would rather be tied down on a hill covered with hungry
ants, rather than deal with our financial matters.
From your question, you sound like you may fit into
this category. In which case, I recommend you skip
ahead to Step 4.
Here
are some ideas to better manage your finances:
| |
- Step
1 is to get the right tools. Use
an electronic financial management tool, like
Quicken or QuickBooks, which will allow you
to record, classify and manage your income
and expenses. Quicken is an electronic checkbook.
You can classify each entry so you will know
how you spent your money (cell phone, advertising,
client gifts, etc). You can generate reports
to understand when, what, and how much you
are spending.
|
| |
- Step
2 is to set up a simple, monthly budget so
that you will know how much money you plan
to earn and spend. Each month, compare your
actuals to your budgeted amounts. Quicken
can do this for you. You can also compare
current year to date financials to the same
time period last year as another comparison.
|
| |
- Step
3 is to schedule time each month to review
and analyze your financial data so
that you will know what you are spending your
money on, and if you are on budget. If you
are not tracking to your budget, you either
need to earn more or spend less.
|
| |
- Step
4 If you abhor the thought of paying
bills, using financial management tools, or
being responsible for keeping your financial
records current, then you will want to delegate
these activities to a trusted bookkeeper and
CPA. Even if you delegate, you still
need to meet periodically with your bookkeeper
to review your financials so that you know
what is happening with your business. Many
of my clients delegate some or all of these
activities and sleep much better at night
as a result.
|
| |
|
| The
bottom line: Manage your finances - Manage your
business! |
About
the Author:
Stuart Kaufman, MS, MBA, is a Real Estate Coach who
specializes in helping Real Estate agents earn a 6-figure
income working 40 hours or less per week. He resides
in Washington State and is a regular contributor to
numerous Real Estate publications nationwide. Got
a question for the coach? Contact Stuart at coach@stuartkaufman.com
or 206-725-1584.
©
Copyright 2006, Metamorphosis Coaching. All Rights
Reserved.
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