wellness hub
Financial Wellness
Your business depends on a strong financial foundation. Learn how to manage income, plan for the future, and build lasting financial security.
Why Financial Wellness Is Essential for Real Estate Agents
Your income fluctuates, taxes aren’t automatically deducted, and financial uncertainty can be stressful. Unlike traditional jobs, there’s no guaranteed paycheck every two weeks, so managing your money wisely is crucial.
With the right financial strategies, you can create more predictable income during slow months, manage taxes and deductions without surprises, and build long-term financial security and retirement savings. By reducing financial stress, you can focus more on growing your business. Let’s dive into the key areas of financial wellness.
Budgeting & Managing Irregular Income
When you don’t get a steady paycheck, cash flow management is everything.
✔ Use the 50/30/20 Rule –
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50% Needs (Housing, food, insurance, essentials)
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30% Wants (Lifestyle, entertainment, travel)
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20% Savings/Debt Payoff
✔ Separate Personal & Business Finances – Open a dedicated business bank account to track income and expenses.
✔ Create a Monthly Budget Based on Average Income – Instead of budgeting per paycheck, use a 3-6 month average.
➡ Suggested Resources:
✔ Realtor Budgeting Spreadsheet (Download Now)
✔ Apps for Budgeting
Smart Savings Strategies
A real estate business has ups and downs. Your savings should smooth out the ride.
✔ Build a 3-6 Month Emergency Fund – Cover slow months or unexpected expenses.
✔ Automate Savings – Set up auto-transfers to a high-yield savings account.
✔ Create a Commission Allocation Plan –
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50% for living expenses
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30% for taxes & business expenses
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20% for savings & investments
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➡ Suggested Resources:
✔ Commission Check Allocation Guide (Download Now)
Planning for Taxes & Deductions
Since you're a 1099 independent contractor, you don't have automatic tax withholding. Be prepared so your future self can thank you come tax season.
✔ Set Aside 25-30% of Every Commission Check for Taxes – Avoid year-end surprises.
✔ Track Write-Offs & Deductions – Mileage, marketing, home office expenses, professional dues.
✔ Pay Quarterly Estimated Taxes – Stay ahead to avoid IRS penalties.
➡ Suggested Resources:
✔ Real Estate Agent Tax Deduction Checklist (Download Now)
✔ Financial Apps
Retirement Planning for Realtors
Planning for retirement is a whole different ballgame when you don't have a 401(k) with employer matching.
✔ Set Up a SEP IRA, Solo 401(k), or Roth IRA – Save tax-efficiently.
✔ Invest in Income-Producing Assets – Real estate, stocks, or REITs.
✔ Create Passive Income Streams – So you’re not relying solely on commissions.
➡ Suggested Resources:
✔ Retirement Planning for Real Estate Agents (Download Now)
Multiple Streams of Income
Diversifying income sources is a smart move when you work on 100% commission.
✔ Referral Fees – Earn passive income from referrals.
✔ Real Estate Investments – Rental properties, house hacking, flipping.
✔ Coaching or Course Creation – Teach others while earning.
✔ Affiliate Marketing – Partner with real estate brands.
➡ Suggested Resources:
✔ How To Build Passive Income As A Realtor (Read blog post)
✔ Real Estate Investing Tools: Roofstock, Fundrise
Disclaimer: The information provided on this page is for general informational purposes only and is not intended as financial advice. I am not a licensed financial advisor or professional. Always consult with a certified financial planner or advisor before making any financial decisions or changes to your financial strategy.