Living in a constant cycle of feast or famine is exhausting. In real estate, income swings are inevitable. However, a shifting market does not have to always feel like the ground under your feet sliding into doom.
It gives us a valuable opportunity to realign our goals and explore new strategies that can lead to a more sustainable and prosperous future.
What makes the difference in whiplash versus steadfast? A system that steadies you no matter what the market looks like.
Mike Michalowicz's Profit First model can be a game-changer for your business and household finances. It's not just about budgeting, it's a mindset shift that brings confidence and calm to your financial management.
Here are the 4 core truths:
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Profit is not what's left over—you prioritize it first.
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Multiple accounts = mental clarity—each dollar has a job.
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Percentages guide you, not feelings—the system keeps you steady.
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The "small plate" effect works—less available = smarter spending.
Is this method new to you? Start here with a checklist to get up and going.
Already following the PF model or something similar? Make sure you're being proactive to adapt to the shifting market. Finances are not a set-it-and-forget-it function.
When the Market is Hot
Closings are rolling in. Temptation is high to spend more freely—but this is when discipline pays off. Increase allocations to Profit and Taxes. Build reserves, pay down debt, and keep your business lean.
When the Market Slows
Closings stretch out. Anxiety about 'the next check' creeps in. Trim operating expenses. Reevaluate tools like CRM systems, subscriptions to listing services, and marketing—and keep only what drives results. Protect the Owner's Pay as much as possible, even if reduced. That consistency sustains you.
When the Market is in Transition (like now)
Uncertainty can feel unsettling—but you're not powerless. Run a quarterly review. Every 90 days, adjust your Profit, Taxes, and Operating Expenses to match your actual activity. Flexibility is your backbone in times like these.
The Bottom Line
Profit First isn't a rigid system—it's adaptable to the market. By staying mindful of allocations, protecting your income, and reviewing your numbers regularly, you'll create financial stability, peace of mind, and the freedom to maintain focus on what matters most: helping families maintain their dreams.
If my business paid me first—before anyone else—how would that change the way I feel about money in real estate?
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Written by Kadi Carroll of Vive Connect
