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Learning to Live on Commission: Crisis-Free Cashflow in Real Estate

Learning to live on a commission basis is a big adjustment for real estate brokers, both new and old. What does your relationship with money look like? Let’s start there as we recap the highlights from our Crisis-Free Cashflow clock hour class, held in the Learning Lab last week. We’ll take it in two turns here: mindset and a functional plan that works, long and short term, for each and every check. Here we go! 

Did you cringe when you read the question, “What is your relationship with money?”

If you did, you’re not alone.

Or, you may not have any idea what your relationship with money looks like.
It goes unexamined, yet acted upon, on a daily basis.

Maybe this question will help clarify:  Do you live in the spirit of abundance or in the spirit of fear?


Does your relationship with money tell you that there’s more money on the way for you?
Do you know -and feel- that there is enough business for everyone?

You answering these questions for yourself, to yourself, will tell you whether you’re living in abundance (regardless of your income level) or scarcity.

Oh mindset, there you are again!
Our mindset has a lot to do with how we feel.

And our relationship with money has a say in our mindset. It allllll works together.

No matter what your answer
Whether you’re already in abundance or you’re coming to realize the level of scarcity you’re operating in, start a Gratitude Journal today.

Did you do it?

Write what you’re grateful for every day. First thing.

Do this and you’re on your way to either amplifying an already abundant mindset or you can stop, reverse out of scarcity and hammer down toward a satisfying, confident and prosperous mindset, no matter what income level you are at right now.

Action plan for every check: Hello Jars!
There’s a plan every time you get a check. It’s simple.

We have a way, adapted from Dave Ramsey’s The Total Money Makeover book, that works. This is a way to break up your income, with every single check, and pay yourself.  We aren’t financial planners, but this is a system that works for us here at the Learning Lab. And we live in abundance!

Don’t argue, just try it out with a recent commission check.

Write down the amount you took in on your most recent commission check. Break it up into these percentages:

  • Taxes – 25%
  • FFA (financial freedom account, aka investments for retirement) – 10%
  • LTSS (long term savings for spending) 10%
  • Living expenses – 40%
  • Giving – 10%
  • Play – 5%

Now. Just look at what the numbers are telling you.
Does anything need to be modified, ideally? In class, we had a few people share that they’d like larger living expenses. GREAT! This is a great place to examine what the spending and expenses actually currently look like in this area. Mortgage, utilities, clothes shopping, car repairs….all of it.

Up your game
Create subaccounts with your online banking savings accounts. Name them: Taxes, FFA, LTSS, Living, Giving and Play. Simply save every check according to the above plan in the increments described. And gear yourself, your spending and your mindset, to live predominantly from inside of your Living expenses account.

It’s easier with some checks than with others
Bigger checks bring more in each category, right? Still, there’s always more to learn from what our actual income is, vs what our spending is.

What you can gain from working with the Jars system we’ve outlined is a reliable and steady plan for every check. Not to mention confidence, satisfaction and awareness of what you’re really making and living on inside of your real estate career. Skip the end-of-year tax scramble and implement this system, or find one that works better for you.

Got questions about this version of the Jars system?
Or, want to be sure you get to the next Learning Lab clock hour class?
Maybe you’re ready to talk more about an abundant mindset inside of a forward-thinking firm?

Reach out and let’s talk. You’re always invited!