Ahhhhhhhhhh... I remember when my average monthly income was $23,500... which meant some months were even higher. I remember two $50,000 months in a row. I remember the year I broke the $300,000 mark. I remember the year I burned out and half-heartedly worked only six months ... and brought in $179,000.
Sigh.
Trouble is, I got into the habit of spending those dollars, not frivolously, but spent them I did. If I wanted a new kitchen, I got it. A sweet little investment property that seemed like a good deal - I bought it. And yes, there was a bit of the princess in there - weekly massages, daily "maid" service and a cute little Caribbean blue Miata I just had to have.
Easy come... easy go.
And speaking of easy - it's an easy habit to fall into when you work on commission - treating those enormous commission checks like Monopoly money and assuming there are plenty more growing on that money tree in the back yard.
I haven't seen a $23,500 month in awhile! Neither has anyone I know.
We Old Fogie agents developed some poor spending habits during the days of prosperity; habits which are hard to break. But break them we must. We need to practice using that dirty little word... NO.
I can proudly admit that I have curtailed my lifestyle, although it took awhile to admit to myself that I needed to do so. And then some more time to actually listen to myself when I told myself NO. I'm far from perfect and I still spend money I probably shouldn't, but I can promise you, when those $50,000 months return, I intend to maintain my frugal lifestyle (although I really miss those weekly massages)!
Many of my Old Fogie agent friends are giving lip service to the idea of cutting back. But they aren't doing it. They're so used to the good life they don't see that many of what they consider "necessities" are actually ridiculously luxurious. New Years Eve in Aspen, a ski pass to Vail, season tickets to the Nuggets, gourmet coffee imported from Costa Rica, monthly facials and weekly visits to the acupuncturist.
Hey, I understand how hard it is to sacrifice in response to what we hope is a temporary downturn in the economy. And I hope with all my heart that my current state of frugality soon becomes a choice, rather than a necessity. But in the meantime, I can almost FEEL that character building!
Okay, okay - if you MUST spend a few dollars...
I want to hump it like it's not tomorrow. I had that income and then some. I pulled back and pulled back hard, but not I'm motivated to get it back up there. Creativity and persistence my friend.
Say What? Regularly scheduled massages are NOT a luxury. They are a necessity.
That's my story and I'm sticking w/it!
Lanette - Oh, my... don't say that - you might convince me!
Larry - See you back at the top!
I do need my flavored coffee. I do, I do, I do.
I'd love to see 23,000 in a year, let alone a month, holy cow, I should have moved to Denver years ago...lol
Jenn, never made that much money, but we had some VERY good years, for this area. Luckily I never got into too much trouble- paid off my Honda Accord one month (yeah, I'm still driving it!). I did get new granite countertops and hardwood floors. My one weakness was that I started to buy really nice clothes and lots of shoes!. That's a tough habit to break now, I'm going through withdrawal.
Karen - yep - life was sweeeeeeeet! But there's no reason you can't see that kind of money - Some of it is dependent on price range, but during that time, I think my average sales price was under $200k. And I didn't have an assistant or anything (well, I had a "wife" who ran all my errands for me!)
Jennifer - I have big ideas for 2009. I did make close to 20,000 or slightly more in my rookie year, in a tough market, when a lot of agents (and brokers) were going to waitressing or odd jobs to survive, so I'm happy. In my area it's really a challenge to make a decent living unless you work outside the area, are a teacher or doctor - so I did good with all things considered. I want to double (or more than double) what I did for 2009.
I believe strongly that I can do it...except for right at this precise moment in time. This morning, on a rainy drizzly day, with my dog snoring beside me and my egg nog flavored coffee in the cup I feel very lazy. Today is not a kick butt "perky" day. LOL
I'm happy about my blogging results (and that's really thanks to you cause I followed you here) and I'm committed to making 2009 be a perky year. Just not today.
Massages are really more of a treatment to keep you functioning at top capacity. You could put those back in the budget without guilt.
Massages are really more of a treatment to keep you functioning at top capacity. You could put those back in the budget without guilt.
I second that, Maria!
I guess it depends where your priorities are. I was always happy when the bills got paid. I never needed 23,000 a month to live. Everyone who was used to that lifestyle are probably hurting pretty bad right now. Kenneth was right... happiness is a job well done, not how much money you made from it.
$23,000 a month is a great way to be able to put money away for kids college, or your retirement - if you can keep it.
Nothing to be ashamed of either . I have lots of plans for my "future fortune" - much if which doesn't involve me personally. :)
Sure that's what they all say....lol
I was bumbed for about a day when I turned my BMW in at lease end without driving off in another one. Not being stressed about that payment makes it a lot easier to make money so I just keep reminding myself that it won't be long. No biggie.
I will not give up massages, though. That's where I draw the line.
Downturns are good for us in so many ways...look at how many people suddenly "learned" how to conserve gas when it was $4.50 a gallon. I am lucky I am work in a small geographic area - I don't burn through much gas even in my busiest times so while the big jump in prices wasn't a big deal to me, I admit I get a small little thrill at the pump these days. It feels as if gas is almost free! Now, I certainly would never have had that pleasure if gas had never been $4.50! LOL
When we do reevaluate lifestyle choices, we realize we don't appreciate things nearly as much when we have them all the time. There are certain things we say we "cannot give up," no matter what, but at the end of the day, when we look at what we have, wow, could most of us be any more blessed at the abundance we truly have, even in our worst times?
As Gary Keller says in SHIFT, as the market shifts, the best way to increase money in your pocket is to examine your expenses and cut the "unnecessary or lowest return expenses". Make sure you are getting an acceptable return on your advertising/marketing dollars.
Jennifer, Where did all the money go? In 2005 I sold a house every 4 days working by myself from my home. It was fun. I never did too much splurging but did spend a lot of money on real estate investments money pits and gave a lot of it away. Average home values in my area have dropped from $225,000 to about $110,000. So now I have to sell a house every hour:) Of course that will never happen.
TLW and I have been downsizing for several years now and it has been a great experience. Still not where we want to be yet but hope to be by the end of next year.
The simple life is a very good thing.
Jennifer, I don't know, but that "cute little Caribbean blue Miata" looks like a "necessities" to me :)
George - I agree - I LOVED that car. Everytime I got in and looked over the sea-color hood, I was just happy. That's a necessity, right? But having two cars in a one-person family... eh... kinda impractical.
Bryant - I'm getting a kick out of figuring out where I can simplify. The main downside is the incredible guilt I feel when I DO spend non-necessary money - for example - I'm taking a much-needed getaway trip next week and it's killing me to spend all those dollars!
Susan - I have a friend who is totally pissed that his company cut his overtime. Then the company announced that they're laying off 50% of the workforce (but not him). Now, he's tickled to have a job at all...
I def. need to cut back on spending, it's kind of hard with the holidays and what not.
Jennifer, I learned this early on in my career. I had a fabulous second year in the business. The next year, I made half of what I had the previous year (gulp). My husband and I learned really quickly to spend money AFTER you have it, rather than before ;) We've made some hard choices this year - paying off our car rather than finishing our master bathroom, pulling the baby out of daycare, even though it impacts my ability to do some things. We're trying to set ourselves up where we can live off of his income, so anything I make (and I still plan on making a lot) is for "other stuff."
Wants vs. needs, baby...
it is SOOOO hard to stop spending. I have always been conservative, but if I wanted something I just got it. (but never borrowed or charged it)... It certainly is a want vs need scenario... but I still need my toys!
Oh, I can only imagine what the public would think reading this article.
Jennifer:
I always figured that, live on half of what you make in good times and the bad times are subsidized. I constantly told my fellow agents this over the years. It is hard to back away from fast money when it comes. The adrenaline works both ways, making it and spending it.
Richard
Love your little car!!!
Jennifer- I have never had a $23K month, but I could sure use one! I see many agents who have spent, spent, spent and now they are out of the business. I think the lean times will teach many people a lot of lessons. Not all are pleasant though.
It is really difficult to scale back your lifestyle once you get used to the high life. Good for you for doing that, however, don't give up everything. Keep the things that really make you happy. As a new agent I haven't experienced those big months but I sure look forward to it!
Won't give up: monthly massages (they keep my sanity) and my nightly wine. Cannot, will not give them up.