One of the greatest challenges in America today is financial mastery. The Social Security Administration says that only 2 out of every 100 people in the richest country in the world will ever have enough to retire when they reach 65 without needing to depend on relatives, charity or the government.

Our own personal freedom with our time is directly related to our financial freedom. We have found that there are a number of agents out there making in excess of $750,000 who are in worse debt and financial trouble than those who make $75,000. How does this happen? Good or bad money will only amplify your character and habits.

We need to start thinking differently than most if we would like to be the minority who make it to that top 2%. The principles below have been tested and will work for anyone, but are especially useful for those that have varying incomes like real estate salespeople. The principles are no respecter of age, race, color, creed or sex. Follow them and you will live in your wildest dreams – ignore them and your will live in your worst nightmares.

Here are some of the characteristics of the rich from researcher Thomas Stanley, PhD -

· They follow and maintain a long-term vision.
· They follow their plan no matter what – even in the face of financial challenges.
· They study wealth and wealthy people and do not rely solely on expert advice.
· They believe in deferred gratification.

Here’s the step-by-step plan that I picked up over the years that allows you to grow wealth despite the irregularities of Real Estate income-

Step #1 -Set-up your accounts
Set-up the following accounts at your financial institution.

Professional Operating Account – Money to run your real estate business.
Personal Operating Account – Money to fund your life.
Income Tax Account – Money to pay taxes.
Charity Account – Give, give, give.
Security Account – No risk and low return investments.
Growth Account – Higher risk and higher return investments.
Fun Account – Second cars, vacations, special events, etc.

Step #2 -Divide Your Income
Transfer 25% (If working solo) – 50% (If working as a team) of your earned income to your professional operating account.

Total what is left and divide it as follows:

· Personal Operating Account – 45%
· Tax Account – 25%
· Charity Account – 10%
· Security Account – 10%
· Growth Account – 10%
· Fun Account – 0% (yes, it’s 0% but don’t worry we get to it later)

Step #3 -Redistribute Your Funds
Every quarter, take the profit from your growth account and any special moneys that may come in (gifts, inheritance, etc.) and divide it equally amongst your growth, security and fun accounts.

Step #4 -Plan Your Financial Future
Review a professional and personal profit and loss statement, and a personal net worth statement monthly.

Step #5 -Educate Yourself
Seek good, financial, insurance and tax advice – but make your own educated decisions.

· You must study investments yourself and only invest in what you know well.
· If you think education is expensive – try ignorance.
· Be patient, wealth is like a tree, it grows from a very small seed.

Management is basically about control – to get things done that the manager or company needs to get done. The client or employee comes second. Management works, but is fundamentally flawed by its power-oriented approach.

Coaching, on the other hand, can be a strength-oriented approach, since it brings out the best in people instead of pushing them harder to do the prescribed job. In fact, coaching can help redesign your job, career, and life so that it works better for you, instead of working better for others. Coaching often pulls clients forward because they get in touch with what THEY want to do. Managing may also do some of this, but only within the confines of the corporation’ s overriding needs, culture and objectives. Coaching is a pull structure. Managing is a push structure.

Session Description -

Learn how to tap the macro trend of localism by tying into one of the best and most stable niches for real estate professionals.  Attorneys and legal service staff represent a golden opportunity to exponentially expand your SOI or Book of Business as well as tap into an amazing array of referrals in your local community.  

Click on the Marketing Module button to check out this week’s Mastery Coaching Marketing Module.

There are good books, and there are great books – Ries and Trout wrote a great book about marketing that apply across industries and has some tremendous application to the real estate business. Here are the lessons summarized from the 22 Immutable Laws of Marketing By Al Ries and Jack Trout -

The Law of Leadership – It’s better to be first than it is to be better.
The Law of Category – If you can’t be first in a category, set up a new category you can be first in.
The Law of the Mind – It’s better to be first in the mind than to be first in the marketplace.
The Law of Perception – Marketing is not a battle of products or services, it’s a battle of perceptions.
The Law of Focus – The most powerful concept in marketing is owning a word in the prospects mind.
The Law of Exclusivity – Two companies cannot own the same word in the prospects mind.
The Law of the Ladder – The strategy you use depends on where you are on the ladder.
The Law of Duality – In the long run, every market becomes a two horse race.
The Law of the Opposite – If you are shooting for second place, your strategy is determined by the leader.
The Law of Division – Over time, a category will divide and become two or more categories.
The Law of Perspective – Marketing effects take place over an extended period of time.
The Law of Line Extension – There’s an irresistible pressure to extend the equity of the brand.
The Law of Sacrifice – You have to give up something in order to get something.
The Law of Attributes – For every attribute, there is an opposite, effective attribute.
The Law of Candor – When you admit a negative, the prospect will give you a positive.
The Law of Singularity – In each situation, only one move will produce substantial results.
The Law of Unpredictability – Unless you write your competitors’ plans, you can’t predict the future.
The Law of Success – Success often leads to arrogance, and arrogance to failure.
The Law of Failure – Failure is to be expected and accepted.
The Law of Hype -The situation is often the opposite of the way it appears in the press.
The Law of Acceleration – Successful programs are not built on fads, they’re built on trends.
The Law of Resources – Without adequate funding an idea won’t get off the ground.