Budgeting Tips for New Agents Who Haven’t Closed a Deal Yet

by Editorial Staff | Sep 6, 2025 | Business and Financial Practices

As a new agent, you might find yourself in a tough spot if you haven’t closed a deal yet. Establishing a smart budget is key to navigate this uncertain period. By tracking your expenses and identifying what’s necessary, you can stretch your finances further. Plus, setting aside funds for taxes and emergencies will help you stay prepared. Let’s explore practical strategies to keep your budget on track and secure your financial future.

Understand Your Income Flow

Understanding your income flow is key as a new real estate agent, especially since your earnings will primarily come from commissions and won’t be steady at first. Set realistic income expectations; many new agents take 3–6 months to close their first deal. Commissions typically range from 5% to 6%, but remember, they’ll be split with other parties and your brokerage, which could take 30% to 50% of your share. This means your actual take-home pay might be less than you anticipate. To navigate these fluctuations effectively, consider supplementing your income with a second job until you establish a steady pipeline of clients. Additionally, it’s crucial to account for the ongoing continuing education expenses that will arise every two years as part of maintaining your license. Tracking your progress and understanding the commission structure will help you plan for a more stable financial future. Additionally, it’s important to note that a significant 74% of REALTORS® are “very certain” of remaining active in real estate, which indicates a positive outlook for future earnings in the industry.

Identify and Track Your Expenses

Tracking your expenses is key for managing your finances as a new real estate agent. Start by selecting specialized expense tracking software like QuickBooks or Wave to enable automated tracking of your spending.

Establish a daily routine for logging expenses, using apps for quick entries. Categorize your expenses clearly—think marketing, office supplies, and professional fees—to gain analytical clarity. Additionally, consider using digital tools to automate mileage logging and ensure no deductible expenses are missed. Implementing these tools can enhance your understanding of buyer financial readiness to align travel with client timelines.

Regularly review your expenses, ideally weekly, and reconcile them with your bank statements to catch any discrepancies. Leverage features like automated categorization and receipt scanning to streamline your process.

Set Aside Funds for Taxes and Emergencies

As you get a handle on your expenses, it’s equally important to set aside funds for taxes and emergencies. For tax savings, aim to allocate 25%–30% of each commission to a separate account, ensuring you’re prepared for quarterly payments. This prevents any nasty surprises come tax season.

For emergency planning, start with a goal of $1,000 for urgent situations, but work towards saving three to six months’ worth of living expenses. Given the unpredictable income in real estate, consider saving even more, as emergency funds are essential for financial planning. Additionally, establishing a SEP IRA can provide a tax-efficient way to save for retirement while you’re building your real estate career.

Use high-yield savings accounts for both funds to keep them accessible and separate from daily spending. Consistency is key—automate your deposits to build these reserves steadily, giving you peace of mind for unexpected challenges.

Manage Cash Flow During Dry Spells

When cash flow slows down, it’s critical to take proactive steps to manage your finances effectively. Start by implementing cash flow forecasting to predict shortfalls and understand your minimum revenue needs. Separate your fixed and variable expenses to prioritize important obligations, and eliminate discretionary spending wherever possible. While you’re at it, consider managing receivables by extending payment schedules with vendors and scheduling bill payments for the latest possible dates. This keeps cash longer in your hands. Additionally, explore temporary side gigs or consulting opportunities to supplement your income. Remember, access limitations can arise unexpectedly, so having a financial buffer is essential during uncertain times. By staying informed on market trends, you can better anticipate potential challenges and adjust your strategies accordingly.

Leverage Digital Tools for Financial Management

Managing cash flow effectively sets the stage for broader financial health, and leveraging digital tools can enhance your budgeting efforts significantly.

Here are three ways financial apps can help you:

Automate Tracking: Use apps like Mint or YNAB to automate expense tracking and categorize spending, making it easier to monitor your habits. Budgeting software can also help identify areas for potential savings or spending cuts. Additionally, utilizing AI writing tools can streamline your content creation process, allowing you to focus more on managing your finances.
Set Goals: Take advantage of goal-setting features to track your progress towards important financial milestones, like saving for business expenses.
Streamline Invoicing: Consider accounting software like QuickBooks, which simplifies income tracking and invoicing without needing extensive accounting knowledge.

Frequently Asked Questions

How Can I Find Clients Before Closing My First Deal?

To find clients before closing your first deal, focus on lead generation through networking, community involvement, and online presence. Engage with local events, build relationships, and showcase your expertise on social media to boost client acquisition.

What Are the Best Marketing Strategies for New Agents?

To succeed, leverage social media and content marketing, enhance your online presence through local advertising, and engage in community involvement. Implement referral programs and targeted outreach to build a strong branding strategy that attracts clients.

Should I Invest in Professional Development Early On?

Yes, you should invest in professional courses and mentorship programs early on. They’ll enhance your skills, build your network, and increase your credibility, helping you stand out and better navigate the competitive real estate market.

How Do I Handle Financial Stress While Waiting for Commissions?

To handle financial stress while waiting for commissions, focus on financial planning and stress management. Create a budget, build an emergency fund, and seek support from peers to navigate this significant period effectively.

What Resources Are Available for Networking With Other Agents?

You can network effectively by attending local meetups and participating in online forums. Engage with peers in these spaces, share experiences, and build relationships that can lead to significant connections and opportunities in your real estate career.