Michael Kilner goes through three financial pitfalls agents should avoid.
Are you a real estate agent feeling the financial strain? Today, we sit down with Michael Kilner from Kilner Advantage to discuss three crucial pitfalls that agents often stumble upon when it comes to managing their finances effectively.
1. Lack of financial systemization and accountability. One of the most common missteps agents make is failing to establish a reliable financial system. Neglecting to track expenses systematically and failing to create a routine for monitoring their financial health can lead to chaotic financial management. Moreover, the absence of an accountability partner or a confidant to bounce financial ideas off of can hinder growth. By keeping financial matters strictly private, agents miss out on valuable insights and potentially overlook significant errors. Collaborating with a trusted partner to review financial matters regularly can provide clarity and promote responsible financial practices.
2. Insufficient tax planning. The struggle of paying taxes is universal, but for self-employed professionals like real estate agents, it can be particularly challenging. Unlike traditional employees who have taxes withheld from their paychecks, agents are responsible for collecting and setting aside taxes themselves. Failing to allocate an appropriate amount for taxes can lead to financial stress and potential penalties. A proactive approach involves estimating tax obligations and diligently saving for them throughout the year. This practice not only prevents last-minute panic but also ensures a smoother tax season.
3. Viewing expenses as costs, not investments. In times of financial difficulty, some agents instinctively focus on cost-cutting, inadvertently harming their businesses. The key is to differentiate between mere expenses and strategic investments. Instead of slashing budgets across the board, consider which expenditures contribute to revenue generation. By identifying and nurturing valuable investments, agents can maintain a steady income flow and avoid setbacks during challenging periods.
Bonus Tip: Discerning Trustworthy Financial Advice
While the internet and social media can offer quick tips and insights, they may not always provide tailored advice that suits your unique circumstances. Relying solely on trending financial strategies from social platforms can lead to uninformed decisions. Instead, seek guidance from experienced professionals who comprehend your specific tax situation. Building a network of trusted advisors who can offer personalized insights ensures that your financial choices align with your business goals.
For more insights or inquiries about Michael Kilner’s expertise, visit KilnerAdvantage.com. If you have any other questions, feel free to connect with us by phone or email.
