Money Tips for Real Estate Agents

Managing money as a Realtor can be tricky – especially when your income fluctuates from month to month and you’re balancing both personal and business expenses.

Strong financial habits aren’t just about saving; they’re about creating stability, sustainability, and freedom in your real estate career.

Whether you’re newly licensed or a seasoned agent, understanding how to structure your finances, budget effectively, and make smart investments in your business will help you build long-term success and peace of mind…

WHETHER YOU’RE INCORPORATED OR NOT…

• Keep your business and personal finances separate. Have a chequing account and a credit card at a separate financial institution from where you personally bank. Deposit cheques into this “business account” and transfer only 30-50% of the commission cheque from the “business account” to your personal account.
• Why only 30-50%? I’ll explain, 13% needs to be kept aside for HST. It’s reasonable to assume that you are in a 25-50% income tax bracket if you are consistently productive. The remainder and the potential tax return should be in your account to cover business expenses, such as cell phone bills, proportionate car insurance/maintenance/fuel, as well as investments in the business, including marketing and advertising. Bonus if there’s a little left over for a rainy day fund, that is ideal!
• Having completely separate business and personal accounts makes bookkeeping/year-end reconciliation much easier because you don’t have to sort your personal bills and expenses from your professional bills and expenses!
• Additionally, it helps you save the money that, as a contractor, you collected for the government but owe back to them.

EDUCATE YOURSELF & BUDGET…

• Listen or read personal finance books like “The Total Money Makeover” by Dave Ramsey, “The 30-Day Money Challenge” by Art Rainer, or “Rich Dad Poor Dad” by Robert Kiyosaki. These books help people understand how to budget, the value of their time, and the difference between an asset and a liability, as well as wise stewardship, etc.
• There are also podcasts and online networks that are great resources in this regard, like The Dave Ramsey Show and Bigger Pockets.

KNOW WHAT YOUR LIFE COSTS…

• You need to live on less than you make to get ahead.
• As Dave Ramsey would say, “many of us have more month than paycheck left at the end of it.”
• Organize and total your recurring weekly, monthly and annual payments, personal and professional. Total those on an annualized basis, add in how much you’d like to contribute to your savings and giving/tithes, and apply your income tax rate to it… this will show you how much you need to gross, without taking into account your one-off purchases like certain home improvements, spontaneous purchases/indulgences, etc. This will help determine what your GCC (Gross Closed Commission) sales goal needs to be for the year (to help your goal setting and tracking).

USE APPS &/OR SPREADSHEETS TO TRACK YOUR INCOME, EXPENSES & GOALS…

• Some budgeting apps are available from your respective financial institution, while others include Buddy, YNAB, and EveryDollar, among others.
• The Agent Success App is a free and effective way to track your agent production.

WHEN PICKING A BROKERAGE…

• Don’t just look for the lowest cost option.
• Consider the additional expenses you may need to pay if another brokerage doesn’t provide them… this could range from signage to desk fees, photocopies to CRM’s, admin support to client events… the list goes on!

ALWAYS, weigh out the cost and likely benefit… people will try to tell you “just one additional deal could pay for this entire proposition…” and that may be true, but I know I always want to see a multiplication effect on my investment, not just expenses coverage, which sounds like working more just to break even. Prove and test your investments into business production. Cut those that are ineffective, and don’t be scared of the word “no”!  Financial discipline is one of the most overlooked traits of successful Realtors. By taking control of your income, separating your accounts, budgeting wisely, and investing intentionally, you set yourself up not just for a profitable year – but for a thriving career.

Remember, smart money management isn’t about restriction – it’s about empowerment and growth! As Dave Ramsey reminds us, “Don’t buy things you can’t afford to impress people you don’t even like (or know).”

Keep that perspective, stay intentional with your spending, and watch your business and financial confidence grow!

Cody Kraus
Broker | Owner
c: 519.322.7105
e: cody.kraus@century21.ca

^{The information provided on this blog is not intended as professional advice and should not be substituted for the guidance of a qualified professional. While we strive to provide accurate and up-to-date information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained on the blog for any purpose. Any reliance placed on such information should be independently verified.}