The Most Incredibly Highly Effective Habits of Successful Real Estate Investors Cont'd Part 7

Budgeting Revenue

We have finally arrived at the last incredibly effective habit of successful real estate investors; budgeting. WOW! This is a tough one ladies and gentlemen. I think it is common to forget, but we all know in the back of our heads that if we do not budget, we are sitting in a sinking paddle boat.

I wanted to share some quick tips on budgeting for your real estate investing business. Enjoy.

• Create a worksheet using your bills and payouts for the last two to three months so that you can effective monitor the expenditures.
• Make room on your worksheet for rewards for great investing days, weeks, or months.
• Go through the books/records and calculate the gross average of income.
• For each of your expenditures, determine an amount that realistically reflects your actual expenses and then set a spending level that allow room for saving some of that income.
• Subtract the total expenses from the total income to arrive at your net income.
  
• If the number is negative, your expenses are greater than your income. Your situation can probably be greatly improved by changing your spending habits of your real estate investing business.
• If you have a positive net income, transfer most of it to a savings or investment account at the end of each month. Extra cash left in a business checking account has a way of getting spent.
• After you've tracked your actual spending for a month or two, analyze your spending to identify where you can comfortably make cuts.
• Once you've got the budgeting process in place, take an in-depth look at your largest spending categories, brainstorm about ways to reduce spending in specific categories, and set realistic goals.
• Update your budget and expenses monthly.
  

Budget...Budget...Budget!!!


Blessing to your Real Estate Investing Business,

Milton B. Yates
www.miltonyates.com

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