Inside: Are you struggling to make ends meet on a low income? This guide will teach you how to budget money effectively on a low income, so you can live a comfortable life without having to skimp on important expenses.
Let’s face it… Navigating through the budgeting on a low income can often feel overwhelming.
The fear of insurmountable bills, the anxiety associated with rising living costs, and the overall foreboding nature of budgeting often make for a persistently stressful experience.
However, it is crucial to understand that you are not alone in this journey. I have been in your spot as well as many Money Bliss readers.
Regardless of how daunting the budgeting task may appear, we truly believe that with the right guidance and adherence to solid financial principles, you are capable of achieving financial peace of mind.
This process will simply require patience, persistence, and strategic planning. This guide aims not only to shine a light on the struggles of budgeting with a low income but also to offer a beacon of hope.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
How to Budget Money on a Low Income
While it’s true that budgeting with a low income can be tough, proper money management can make it doable.
When you have less disposable income, it leaves you with less leeway in your budget. That’s why you have to be accountable and meticulously plan your spending to ensure financial stability.
So, let’s dig in and you can find success.
Step #1 – Figure out Your Monthly Income
Developing an effective budget starts with understanding your monthly income.
Here’s a step-by-step guide:
List out all income sources: This includes all your regular paychecks, part-time jobs, side hustles, social security, child support, or any other form of income you have. If your income is irregular, say from commissions or seasonal work, it’s advisable to base your budget on your lowest monthly income.
Account for taxes and deductions: To get an accurate picture of your disposable income, you need to factor in taxes and deductions from your earnings. You need to make sure you understand the difference between gross pay and net pay.
Include irregular income: If you occasionally get money from gifts, or sporadically earn from passive income sources like investments, be sure to include these too. As these are inconsistent, it is best to fund discretionary spending with this money.
Personally, I recommend using your net income with budgeting. This will give you an accurate budget that you can truly follow.
This knowledge is powerful when it comes to effective budgeting.
Step #2 – Define your bills and Expenses
Knowing how much you spend and what you spend your money on is another crucial step in budget planning.
The key is to define ALL your bills and expenses. Here are the personal budget categories that cover almost everything you can think of.
Now, you must do the following:
Identify your fixed costs: These are basics that you have to pay monthly and remain fairly constant, such as rent, car payments, and student loans.
Consider flexible costs: These expenses vary from month to month. Examples include groceries, transportation, electricity, water, and gas bills.
Remember periodic costs: Some costs only appear annually or semi-annually. For instance, insurance premiums, car registrations, and property taxes. It’s important to set aside money each month to cover these expenses when they arise. A sinking fund is great for these expenses.
Account for daily spending: Beyond fixed and flexible bills, consider your day-to-day expenses like shopping, subscriptions, and entertainment. Be honest about the little expenses. It’s often the small, frequent purchases that can derail a budget.
Prepare for unplanned costs: Finally, remember to budget for unexpected expenditures such as car repairs or medical bills.
By defining and categorizing your bills and expenses, you can see where your money is going and better manage your spending.
Step #3 – Reach a Zero Budget
A zero-based budget is a strategy that requires you to assign every dollar you earn to a specific expense or savings category, with the goal of having your income minus your expenses equal zero by the end of the month.
Write down your income: From the step before, you already know your total monthly income.
Subtract your expenses: Subtract the total of your monthly expenses (including savings) from your total monthly income. If you’ve correctly accounted for your income and expenses, the result should be zero. This is what it means to have a “zero-based budget”.
Balance the budget: If your income and expenditure don’t balance, adjust your variable expenses and other discretionary spending until they do. This can involve cutting back on nonessential overspending, like takeout meals or unnecessary purchases.
Allocate every dollar: With your budget balanced, each dollar should now have a purpose, whether it’s paying bills, going into savings, or providing for your daily needs.
Many people struggle to hit a zero based budget on the first try. It is common for your expenses to be higher than your income. Thus, a no spend challenge may help you identify what is important to actually spend your money.
Reaching a zero-based budget equips you with a clear picture of your financial status.
Thus, it allows you to use your money purposefully and prevents unnecessary spending. This way, even with a low income, you can still meet all your needs and work towards your financial goals.
What do you do if your budget shows your expenses are more than your income?
When your monthly spending exceeds your monthly income, immediate attention is needed to prevent worsening financial issues. Before panic sets in, consider taking the following steps:
Analyze your budget: Reevaluate and scrutinize your budget. There might be necessary adjustments overlooked or expenses incorrectly categorized. This will give you a clearer understanding of where your money is going.
Prioritize essential expenses: Allocate money to necessities like housing, food, utilities, and debt repayments first. Other less necessary expenditures, like entertainment and dining out, can be reduced or eliminated.
Reduce expenses: After prioritizing, identify areas where cuts can be made. Impulse buys, unnecessary subscriptions, or expensive habits might need to go.
Increase your income: Consider part-time jobs, side hustles, selling unused items, or picking up freelance work to bring in more money.
Seek advice if debt is weighing you down: As a last resort, you may look at ways to lower your interest rate on your debt. These strategies like debt consolidation or restructuring could help make your situation more manageable.
Remember, this situation, while stressful, is not permanent. With careful planning and disciplined execution, you can turn this around and regain financial stability.
Taking Control of Your Budget When Income Doesn’t Cover Your Expenses
Now, this is where you need to learn to manage your money wisely. You are in control of where you spend your money.
Many truly believe with a higher income all of their financial problems go away. From my research, most people end up with bigger money problems, the same spending habits, and still living paycheck to paycheck even with a higher income.
So, let’s reign in what you can do today to make your budget feasible.
1. Prioritize Essential Bills and Expenses. The key is to identify which expenses are truly essential to your livelihood. All remaining expenses, like entertainment or eating out, should be considered secondary and only met after the primary expenses have been satisfied.
2. Participate in a No Spend Challenge. A No Spend Challenge not only helps you save money rapidly but also makes you cognizant of your spending habits, helps identify non-essential expenses, and guides you towards a minimalist, sustainable lifestyle. Start with a no spend month.
3. Reduce your Housing Expenses. Housing costs can be one of the most significant expenses. Look at ways to downsize, negotiate rent, refinance your mortgage, or get roommates. Or even housesit permanently.
4. Be Cognizant of Bad Spending Habits. Some examples include impulse purchases, expensive convenience, not comparison shopping, or paying too much. By becoming aware of your spending habits and making conscious choices, you can break the cycle of unnecessary spending and start saving money with the penny challenge.
5. Skip the Expensive Coffee Shop. Choosing to forgo your daily coffee shop run can result in surprisingly significant savings. Implementing just this one change could save you over $600 a year!
6. Use Public Transportation to Save Money. The costs of owning a car – gas, maintenance, parking, and insurance – can quickly add up. So, look for public transportation as an alternative or even cycling, carpooling, or walking.
7. Take Advantage of Free or Cheap Entertainment. When living with a low income, entertainment expenses can quickly eat into your budget. Good news for you! There are plenty of things to do that don’t cost money.
8. Cut Back on Grocery Spending. By implementing simple strategies such as meal planning, cooking at home, cutting down on processed food and reducing waste, you can maintain a healthy diet while significantly reducing your grocery bills. Don’t forget to use those discounts and coupons!
9. Stick to Your Shopping List. Preplan your purchases before stepping into a store. This is a powerful tool in curbing those impulse purchases which can inflate your expenses substantially.
10. Start Meal Planning. Meal planning is a practical and economical way to manage your food budget. By planning your meals for the week, you can control your grocery spending and eliminate waste.
11. Stockpile Goods That Will Stay Stocked Up Long Term. Remember, the goal of stockpiling is to save money, not to transform your home into a supermarket. Purchase enough to last a few months and focus on items that you’re certain to utilize. Here are the best foods to buy when broke.
12. Pack Your Own Lunch and Skip Eating Out. With an average meal out costing around $10, you could easily save $200 a month by packing lunch from home. Over a year, that’s $2,400 in savings!
13. Drink Water and Avoid Processed Foods. Shifting dietary habits can be a significant change, but your commitment to a healthier lifestyle can reap both health and financial dividends. It’s an investment in a life of wellness and economic sustainability.
14. Take Advantage of Discounts when Shopping. Remember, the goal of shopping with discounts is to spend less on what you need, not to buy more than you need. So, make sure to use coupons wisely, shop sales, buy off season, and use Cashback apps like Rakuten and BeFrugal.
15. Avoid Impulse Purchases. By avoiding impulse purchases, you give your budget room to breathe and create an opportunity for savings. This makes a significant difference over time, especially when money is tight.
16. Apply for Discounts on Utilities and Services. Many utility companies provide low-income home energy assistance programs. The same is true for internet service. Contact your service providers to check your eligibility.
17. Get Free or Discounted Goods Through Charities. Charities, faith, professional, and local organizations often offer grants for people experiencing financial hardship. Utilizing them can be a lifetime as they help you stretch your budget further and provide necessary support in times of financial struggle. Don’t be afraid or too proud to ask for help when you need it.
18. Get Outside. Reconnecting with nature can provide you with cost-free entertainment and a sense of tranquility that’s hard to find elsewhere.
19. Avoid Unnecessary Expenditure. While each person’s definition of “unnecessary” may differ, the key to budget management is curbing expenditures that don’t add substantial value to your life. A common culprit could be brand-name goods or late fees.
20. Start the Practice of Saving with a Mini Savings Challenge. The Mini-Savings Challenge can pave the way to a habit of saving regularly, even on a tight budget. Essentially, this challenge consists of setting aside a small amount of money each day or week, gradually increasing the amount over time.
21. Show Gratitude. While it may seem less directly related to finance, practicing gratitude is indeed integral to efficient budgeting and financial wellness. Remember, financial success isn’t just about making more money. It’s also about appreciating what you have and recognizing the steps you’re taking towards your goals.
Inciting Additional Income Avenues
Okay, this section is how you take a low income and increase your money. While cutting back spending is helpful, creating more money will help you to reach money success faster. This will take the strain off.
1. Look for Ways to Earn Extra Income
Boosting your income, no matter how minimal the increase, can help cover necessary costs and elevate your financial standing.
Here are some ideas using your current job:
Work Overtime: If possible, consider getting more extra hours at your current job. Earnings from overtime or extra shifts can be significant.
Negotiate a Raise: If you’ve been with a company for a while and demonstrated your worth, it might be time to discuss a raise. Prepare well for this conversation with evidence of your productivity and value.
Every extra dollar earned can be put towards savings, paying down debt, and creating better financial stability.
2. Leverage Side Hustles for Extra Money
Side hustles have become an increasingly popular way to earn extra money online in your spare time. They allow for flexibility and can be a great supplement to your current income.
Start a Side Hustle: These can be a great way to make use of spare time to earn extra cash. This could be anything from driving for a rideshare company, offering freelance services, tutoring, delivering food or groceries to selling homemade goods online.
Sell Unused Items: You probably have items in your home that you no longer need. Selling anything from clothes to electronics or furniture can be a good source of income.
Passive Income: From writing an eBook to renting out a room in your house or investing in stocks, creating passive income streams can provide extra money over time.
Remember to choose a side gig that fits your schedule, interests, and skill set. Not only could it bring in extra money, but it could also turn into a passion project, making the work feel less like a chore.
3. House Sit for Extra Income
House sitting can be a viable option for those looking to generate extra income, especially if you’re flexible with your time and location. It typically involves looking after someone’s home (and sometimes their pets) while they’re away.
Not only is house-sitting a way to earn money, but it can also offer a free place to stay. Hello – you just lowered the biggest expense in your budget. However, remember that taking care of someone else’s home is a huge responsibility, so only take on tasks you’re confident you can handle.
Get started by building your profile on Trusted Housesitters.
4. Items You Don’t Need Anymore
Selling items you no longer need or use can both declutter your home and add to your income. It doesn’t just have to be big-ticket items; even small routine household items can yield returns.
While this may be difficult to do, look for items in good condition that you and your family no longer need or use. If you have extra baby stuff, you can rent it on BabyQuip for extra money.
Remember, while selling items won’t provide a consistent income, it can be a great one-time source of extra cash especially if you have these highly popular flipping items in your house.
Baby Equipment Rentals with BabyQuip
Have you heard about BabyQuip? They are the #1 baby equipment rental service offering clean, safe, and insured baby gear.
Whether you are traveling or just don’t want to purchase, this is a great idea to check out.
Learn More
5. Pick up a Part-time Job
When you’re on a limited income, picking up a part-time job can be a reliable way to supplement your earnings. You are trading your time for money.
Many of these jobs that pay weekly offer valuable experiences, skills, and possibly even room for growth and advancement. Remember to save and plan for any taxes due as a result of your increased earnings.
Smart Use of Technology in Budgeting
Taking advantage of personal budgeting tools can make managing your finances easier. They can help track expenses, create a budget, and set saving goals. Here are some popular options:
You Need a Budget (YNAB): YNAB helps you create a budget and live within your means, educating you on effective money management along the way.
Simplifi by Quicken: This app crunches the numbers to show how much money you have for day-to-day spending after accounting for bills, goals, and savings.
Empower: This free tool offers a comprehensive financial dashboard that includes budgeting features and investment tracking.
Tiller Money: If you want a more manual approach, you can use Google Sheets or Excel to create a customizable budget spreadsheet.
Remember, the best tool is the one you use consistently. Try a few options to see which one best meets your needs and preferences. Every tool has its pros and cons, but all aim to help you control your finances effectively.
Empower Personal Wealth, LLC (“EPW”) compensates Money Bliss for new leads. Money Bliss is not an investment client of Personal Capital Advisors Corporation or Empower Advisory Group, LLC.
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Option to manually add and upload transactions from accounts each month.
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Access Paychecks Early with Digital Banking Apps
With the rise of digital banking, access to innovative financial tools like early direct deposit has become more accessible, even for those with low incomes. These services can be crucial lifelines between paychecks or in case of emergencies.
Here are a few platforms that offer such services:
Chime: Once you set up direct deposit with Chime, you may get your paycheck up to two days earlier than at a traditional bank.
Current: Current, a mobile bank account, provides users with paychecks up to two days in advance.
Varo: Varo also offers early direct deposit for its users, helping you gain access to your money more quickly.
Clair: Clair’s on-demand pay solution lets you advance a portion of your paycheck before payday. This can be particularly helpful when navigating financial crunches.
It’s important to note that while accessing your paycheck early doesn’t give you extra money, it does provide more flexibility in managing your finances and can help avoid overdraft fees or high-interest loan options in times of need. As with any financial tool, it’s essential to use early paycheck access wisely and not rely on it for regular spending.
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FAQs
Saving money on a low income can seem challenging, but a few strategic changes and smart habits can make it achievable.
Engaging in a money-saving challenge can be a motivating way to encourage disciplined saving, helping you to creatively manage your finances and significantly boost your savings plan over time.
Remember, the key to saving on a low income is to stay consistent, patient, and adaptable in your approach.
Surviving on a low income budget can be challenging, but strategic planning and careful spending can help you manage your finances effectively.
The focus as Dave Ramsey likes to say is on your four walls – food, utilities, shelter, and transportation.
Remember that it’s okay to adjust your budget as you go. Circumstances change, and so should your budget. Review your budget regularly to ensure it’s still working for you and adjust as needed.
Budgeting when you’re broke might seem like an uphill battle.
The key is to make sure you stick to your budget and track your spending consistently. Don’t hesitate to reach out to local charities, government programs, and non-profit organizations for assistance.
Remember, being broke is often a temporary situation, and even small steps towards better budgeting can compound into big changes over time. Try to stay positive and focused on your financial goals.
Now, How do you Survive on a Low Budget?
Surviving on a low income involves careful planning, budgeting, and making the most of available resources. While it may seem challenging, it is indeed possible.
Every small step you take towards frugal living, such as sticking to a budget, reducing unnecessary expenses, or earning extra cash, can lead to considerable savings in the long run.
Remember, it’s also important to invest in yourself – whether that’s asking for a raise at work, learning a new skill, or starting a side hustle.
The journey of living on a low income can be tough, but it also offers an opportunity for creativity and gratitude for the essential things in life. With a positive mindset, some patience, and careful budgeting, you can not only survive but thrive, even on a low income.
The goal isn’t to just get by but to build a financially stable future.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Wednesday’s bond market losses rained on Tuesday’s post-CPI parade. Justification was adequate, with Retail Sales coming in 0.2 higher than expected, but the implications for the near future were uncertain. Were bonds only reacting to the data or was the CPI rally overdone to some small extent? Today’s session helped answer those questions. All it took was a modest miss in Jobless Claims and a few other 2nd tier reports for bonds to fully erase Wednesday’s losses.
Jobless Claims
231k vs 220k f’cast, 218k prev
Continued Claims
1865k vs 1847k f’cast, 1833k prev
Philly Fed Index
-5.9 vs -9.0 f’cast/prev
Philly Fed Prices Paid
14.8 vs 23.1 prev
Industrial Production
-0.6 vs -0.3 f’cast, +0.1 prev
08:47 AM
Slightly stronger overnight with additional gains after AM econ data. 10yr down 8bps at 4.457. MBS up just over a quarter point, but closer to 3/8ths after adjusting for illiquidity.
11:26 AM
Best levels of the day about an hour ago, but giving up ground since then. MBS up 6 ticks (.19) before accounting for illiquidity (8-10 ticks otherwise). 10yr yield down 7.2bps at 4.465.
02:14 PM
Flat near best levels. MBS up 14 ticks (.44) and 10yr down 8.8bps at 4.449.
03:20 PM
No change from last update. 10s hit the 3pm close at the exact same 4.445 level as Wednesday. MBS still up 14 ticks.
Download our mobile app to get alerts for MBS Commentary and streaming MBS and Treasury prices.
Do you want to become a bookkeeper and earn money from home? If so, you may be interested in learning about the most popular bookkeeping course out there – Bookkeeper Launch. In this Bookkeeper Launch Review, I will help you learn everything that you can about this course so that you can decide if you…
Do you want to become a bookkeeper and earn money from home? If so, you may be interested in learning about the most popular bookkeeping course out there – Bookkeeper Launch.
In this Bookkeeper Launch Review, I will help you learn everything that you can about this course so that you can decide if you should take it or not.
Bookkeeper Launch is a popular course that teaches people how to do bookkeeping and start their own virtual bookkeeping businesses. It’s made for people with various levels of experience (even if you’re a beginner!) and covers what you need to start a successful bookkeeping business.
In this article, we’ll explore what Bookkeeper Launch teaches, how it’s organized, and what people who have purchased it think, to help you decide if it’s a good use of your time and money.
Please click here if you want to sign up for Bookkeeper Launch.
10
This free training will teach you what you need to know to become a virtual bookkeeper and make money from home.
Key Takeaways
Bookkeeping jobs are great because you can learn the skills you need from the comfort of your home, and then you can also work the job at home while creating your own schedule.
Bookkeeper Launch is a complete program that teaches bookkeeping skills and guides students in starting their own businesses.
The course is around 60 hours long and over 10,000 people have taken this course!
The course teaches a lot, starting from the basics of accounting to ways to get clients through marketing.
You do not need to have previous experience in accounting or bookkeeping to get started.
There is a free workshop that helps you get started with becoming an online bookkeeper.
The cost for Bookkeeper Launch is $249 a month for 12 months, or $2,499 up front.
Bookkeeper Launch Review
What is a bookkeeper?
A bookkeeper is a person who keeps track of money-related activities for businesses and individuals. They make sure that all the financial records are correct, current, and well-organized. If you become a bookkeeper, you’ll do things like putting in numbers, making sure bank records match, and creating financial reports.
Bookkeeping tasks may include:
Recording financial transactions
Categorizing and organizing financial information, such as filing receipts
Producing financial statements
Bank statement reconciliation
Creating financial reports
Processing invoices
Cash flow management
Running payroll
People with virtual bookkeeping jobs work remotely from home, and they do not physically need to go into the office. Bookkeeping is a great option for remote work because all of a bookkeeper’s work can be done online or with computer software.
If you are a freelance bookkeeper, you may have several clients or just one. It simply depends on what type of bookkeeping business you want to run.
Recommended reading: How To Become a Bookkeeper and Make $40,000 Per Year
How much do virtual bookkeepers make?
The amount that a virtual bookkeeper can make will vary.
This is because it depends on how many hours you put toward it each week (do you want to work part-time or full-time, for example), what you’re doing to grow your business, and more.
As an online bookkeeper, you may be able to earn around $40,000 or more each year. This is around 12 to 16 clients each month. Per-hour pay may range anywhere from $60 to $100 an hour.
It’s not uncommon for a bookkeeper to make approximately $300 a month for one client, and that’s working around 4 to 5 hours a month total.
Recommended reading: Online Bookkeeping Jobs: Learn How To Get Started Today
What is Bookkeeper Launch?
Bookkeeper Launch (formally called Bookkeeper Business Launch) is an online course that teaches you how to begin and grow your own bookkeeping business.
It’s sold by Bookkeepers.com and created by Ben Robinson, who has more than 15 years of experience as a Certified Public Accountant, and he used to own a CPA firm until he sold it.
The course covers important areas like basic bookkeeping, starting your business, ways to promote it, and finding customers. When you join Bookkeeper Launch, you’ll learn what you need to start a virtual bookkeeping business and work from your home or any place you like.
Who is Bookkeeper Launch for?
Bookkeeper Launch was created for people who want to either start their own bookkeeping business or improve their current bookkeeping skills. It doesn’t matter if you’re a beginner or already have some experience, the course has useful tools and direction tailored to what you require.
It’s a good fit for people who want a flexible work schedule, like dealing with numbers, and are careful about details. If you’re prepared to establish a thriving bookkeeping business, Bookkeeper Launch could be just the right choice for you.
This course is made for people who are thinking about changing their careers and for those who are already experienced. It helps you learn all the details of bookkeeping and also how to start and expand your own business.
What’s in Bookkeeper Launch?
Below I will be talking about what is in the Bookkeeper Launch course.
What’s included in the Bookkeeper Launch course?
The Bookkeeper Launch course teaches you everything you need to know to start a 100% virtual bookkeeping business from scratch.
There is a lot included in this course from lessons, practice exams, checklists, and more.
Bookkeeper Launch is made up of 3 main categories plus the “Power Units,” each focusing on the 3 key areas of learning about bookkeeping.
Category #1 – 21st Century Bookkeeping Skills is all about becoming a high-quality bookkeeper. You will learn exactly what a bookkeeper does, all about the most important financial statements that you will be creating (Balance Sheets, Income Statements, Statements of Cash Flow), how to create financial reports, and more. You will even learn how to clean up a business owner’s books and organize the worst financial mess.
Category #2 – Clients is where you’ll get your first handful of clients to get your business off the ground. This module is all about how to get clients and find bookkeeping jobs. You’ll learn how to find clients, how to price your services, how to send proposals, and more. There’s even a lesson on “How to Yakkity-Yak” which is how to promote your bookkeeping services without being spammy or annoying.
Category #3 – Business Systems is where you’ll develop the systems you’ll need to succeed (and run your business day-to-day). This module will teach you how to be as efficient as possible with your bookkeeping services so that you can get things done quickly but also correctly. You will learn how to set up and manage your business, how to save money with your business, how to save time running your business, and more.
Power Units are for when you’re ready to grow your business. They will teach you how to follow up with possible new clients, how to get referrals, and more. There is a helpful email template that you can use as well as a follow-up system for email outreach.
You also get to use the Bookkeeper Launch Resource Libraries. This includes guides, templates, worksheets, and more so that you can start a successful bookkeeping business.
When you’ve finished the course and the exams, you will receive the Bookkeeper Launch Certificate of Completion as well as a badge to show on your website or social media accounts.
Bookkeeper Launch also provides a 7-day plan to launch your business. This is a step-by-step plan to get your business started in just one week. You will learn how to set up your business legally, how to onboard a client, and more.
You can see the full syllabus here.
Support and community
A great thing about the Bookkeeper Launch program is that it has strong support and a community. You can get lots of help and tips from experienced bookkeepers in online groups and live sessions when you purchase the course.
There is a support group community for everyone who has taken this course that is hosted on Facebook. There are over 8,000 people in this private group! You can ask questions whenever you like, and learn tips from others in the group.
Once you join the course, you can get help whenever you need it from their team. There is unlimited email support which is great for whenever you have questions. There are also 2 weekly live question-and-answer sessions that they host in their group.
They even have a “Legal Lunch” in their group so that you can get help from a lawyer. Each month, Bookkeeper Launch invites a lawyer into their group consultation call. You can ask any questions on the live call about setting up your business.
How much does Bookkeeper Launch cost?
The Bookkeeper Launch course teaches you everything you need to know to be a successful bookkeeper. It’s split into different sections that cover important topics. There is Bookkeeper Launch Pro, Bookkeeper Launch Premier, and Bookkeeper Launch Team.
You can sign up by making one payment or by paying monthly, which makes it affordable for different budgets.
Free training: They also have free training that you can take. If you are interested in finding online bookkeeping jobs, I recommend signing up for this free workshop that’s all about finding a virtual bookkeeping job. Here, you will learn how to start a freelance bookkeeping business. You can sign up for free here.
Below, I will be talking about each of the Bookkeeper Launch options:
Bookkeeper Launch Pro
With this option, you get the full course (the Bookkeeper Launch System) and access to the private Facebook group of virtual bookkeepers as well as resource library access.
You get the bookkeeping course plus bonus materials such as Hacks & Facts and Profit Maximizers. This comes with unlimited access and updates.
Bookkeeper Launch Pro costs $249 monthly for 12 months, or $2,499 up front.
Bookkeeper Launch Premier
This is your fastest path to becoming a bookkeeper, and you get access to everything in Bookkeeper Launch Pro plus more. You get the full course and the private community plus weekly group coaching to guide you through building your business.
This level comes with 8 group coaching sessions, unlimited open mic sessions, accountability, and more.
Bookkeeper Launch Premier costs $299 monthly for 12 months, or $2,999 up front.
Bookkeeper Launch Team
With Bookkeeper Launch Team, you get everything in Bookkeeper Launch Pro and Bookkeeper Launch Premier, as well as:
The Marketing Machine
Outstanding Processes & People (OPP)
Exclusive “Elite” Community of Bookkeeping Entrepreneurs
Licensed access for 2 of your team members to the 21st Century Bookkeeping Skills section of Bookkeeper Launch (these are called Knowledge Licenses)
Bookkeeper Launch Team costs $4,999 up front.
Bookkeeper Launch refund policy
This course has a 30-day money-back guarantee. So, if you are not 100% happy with the course, you can get a refund.
Pros and cons of Bookkeeper Launch
As someone who is considering the Bookkeeper Launch course, it’s important to think about the pros and cons before making your decision. Below is a list of some key things to consider in order to help you make the best choice.
Pros:
Good income potential – Many Bookkeeper Launch graduates have reported earning $50,000 or more per year as bookkeeping professionals.
Quality content – According to reviews, the course has comprehensive, easy-to-understand lessons that set you up for success as a bookkeeper.
Expert guidance – Ben Robinson, a Certified Public Accountant with over 20 years of experience, teaches the course. His credibility in the field contributes to the course’s value.
Strong track record – Thousands of people have gone through the Bookkeeper Launch program and started successful bookkeeping businesses, attracting high-paying clients in the process.
Cons:
Price – One of the main drawbacks is the cost of the course. Some potential students may find it difficult to justify the expense, especially if they are just starting out in the bookkeeping profession and may have financial constraints.
Time – The course takes around 90 days to complete, as it teaches you everything that you need to know.
Bookkeeper Launch reviews and ratings
No review is complete without looking for feedback from actual course students. The Bookkeeper Launch course has received many positive reviews from numerous students.
People who finished the course really liked what they learned and how supportive it was. A lot of them have started their own bookkeeping businesses, which shows that the course really works. These good reviews make the Bookkeeper Launch course seem even more trustworthy and show that it’s a great start for a bookkeeping career.
You can read Bookkeeper Launch success stories here.
Bookkeeper Launch course review BBB
Bookkeeper Launch has an A+ rating from the Better Business Bureau. With over 40 reviews, they have managed to maintain an average of 5 stars. This high ranking from the BBB shows that the course has a good reputation and provides excellent value to its students.
Bookkeeper Launch course review Reddit
I browsed Reddit for firsthand reviews of the course and found many positive reviews for Bookkeeper Launch.
One review I found said:
“I highly recommend BL over the DIY/free method. I was a bit skeptical at first, but purchasing BBL (as it was called back then) was one of the best decisions I’ve made. You will learn about much more than just the bookkeeping, and will forever have access to a HUGE network of bookkeeping professionals.” – BookToTheFutureLLC
Frequently Asked Questions About Bookkeeper Launch Course
Below are answers to common questions about the Bookkeeper Launch course.
Is it hard to become a virtual bookkeeper?
Becoming a virtual bookkeeper may seem hard at first, but with the right training and resources, you can develop the skills and knowledge to succeed. It’s important to be dedicated, focused, and open to learning new things as you go through your training.
Does Bookkeeper Launch teach bookkeeping?
Yes, Bookkeeper Launch is a course designed to teach you everything you need to know about bookkeeping, along with marketing and business-building strategies to help you launch your own virtual bookkeeping business.
How effective is the Bookkeeper Launch course?
Bookkeeper Launch has a proven track record, with thousands of people who have successfully started their own bookkeeping businesses and attracted high-paying clients. The course holds an A+ rating with the Better Business Bureau and has received numerous positive reviews from its students.
What is the cost of the Bookkeeper Launch?
Bookkeeper Launch Pro costs $249 monthly for 12 months, or $2,499 up front.
Are there any prerequisites for this course? Do I need to be an accountant beforehand?
No, this course is great for beginners with no prior knowledge of bookkeeping. It starts with basic concepts and gradually progresses to harder topics.
Who is the founder of Bookkeeper Launch?
Bookkeeper Launch was founded by Ben Robinson, a former Certified Public Accountant (CPA) who has dedicated himself to helping aspiring bookkeepers start successful businesses.
Is there a certification provided upon completion?
There is not a certification, but you do get a certificate. When you’ve finished the course and the exams, you will receive the Bookkeeper Launch Certificate of Completion as well as a badge to show on your website or social media accounts.
Is Bookkeeper Launch accredited?
Bookkeeper Launch is not accredited by any educational institution. However, it has an A+ rating with the Better Business Bureau and over 10,000 students have taken the course.
Is Bookkeeper Launch self-paced? How long is the Bookkeeper Launch program?
Yes, Bookkeeper Launch is a self-paced, online course, which means you can go through the lessons and complete the training at your own pace. This flexibility makes it a great option if you have other commitments or are looking for a course that fits your schedule.
Is Bookkeeper Launch free?
Bookkeeper Launch is not free. But, they do have a free training workshop that you can sign up for. Their free workshop is all about how to find a virtual bookkeeping job. Here, you will learn how to start a freelance bookkeeping business. You can sign up for free here.
Are there any discounts or promo codes available?
Discounts and promo codes for Bookkeeper Launch may be available from time to time. It’s best to check the Bookkeeper Launch website or sign up for their newsletter to receive updates on any current promotions or discounts. If you sign up for their free workshop, you’ll be informed of any sales. Also, there is a 30% military discount for active duty or retired service members as well as their spouses.
Is Bookkeeper Launch legitimate and worth it?
If you want to be a successful independent bookkeeper, turning what you know into a real business can be scary. It’s not always easy to figure out how to make it work. That’s why this course for beginning bookkeepers can really help.
A good bookkeeper course covers more than just the basics. It also teaches important things that are sometimes forgotten but really important for starting a bookkeeping business. This includes how to get clients and handle money.
Bookkeeper Launch Review
I hope you enjoyed this Bookkeeper Launch Review.
Bookkeeper Launch is a great course to take if you are looking to start a virtual bookkeeping business. Over 12,000 people have taken this course, and there are many, many positive reviews for it.
Bookkeeper Launch teaches you how to start your own online bookkeeping business right from the very beginning, even with no experience.
This course will teach you how to learn real bookkeeping skills (such as how to prepare financial statements and other tasks you may be doing for businesses as a bookkeeper) and actually find clients so that you can make money and work from home.
The course is self-paced too, which means that you can take the course as quickly or as slowly as you would like.
I have heard great reviews about this bookkeeping course from many of my readers, and I know of many people who have found bookkeeping jobs because of what they have learned through this training.
Do you want to become an online bookkeeper? What did you think of the Bookkeeper Launch course?
The story of the week for mortgage rates continues to be the substantial drop seen on Tuesday in response to the Consumer Price Index (CPI). But that story is a bit less epic and exciting after today’s Retail Sales data.
Retail Sales was the only other economic report this week that was remotely as important to rates as CPI. Thankfully, it’s not AS important or we might be seeing a bigger bounce today.
As it stands, Retail Sales beat forecasts by 0.2%–a margin that could be considered too large to be inconsequential and too small to be highly significant. For the bond market, it was worth unwinding about half of yesterday’s improvement, but mortgage-specific bonds fared a bit better than US Treasuries.
The average mortgage lender moved up less than an eighth of a percent and remains closer to the bottom of this week’s range.
Between now and the first full week of December, there are no other economic reports or scheduled events with the same potential energy as those seen over the last 2 days. That doesn’t mean rates can’t move higher or lower–only that such movement would not be easy to line up with specific times on specific days.
More sellers resorted to doling out more freebies as the US housing market stalled.
Sellers that gave concessions accounted for 35% of sales in the three months ending in October, per Redfin data.
That’s because owners were looking to get their homes off the market as high mortgage rates cooled off demand.
More freebies are being handed out to home buyers, thanks to stalling sales and high mortgage rates freezing the housing market.
That’s because more sellers have resorted to offering buyers concessions – free offerings intended to make a sale more affordable for buyers – in order to close deals. Sellers that gave concessions accounted for 35% of home sales in the three months ending in October, according to Redfin data, surging from 27.6% of sales in October 2021.
“Sellers have become more open to the idea of giving out concessions like cash for repairs and mortgage-rate buydowns, in part because many of them want to get their homes sold quickly due to major life events like divorces and new jobs,” Redfin Premier agent David Palmer said in a statement on Tuesday.
When mortgage rates hit 23-year highs in October, that sidelined prospective home buyers, who also backed out of more sales earlier this year.
According to Redfin, 16.3% of home sale agreements were canceled in September, the highest rate of cancellations since October of last year.
“House hunters are pickier than ever before. It’s really expensive to buy a home today, so they want to make sure they find the right one. Buyers have become increasingly likely to terminate a deal if they don’t get the concessions they want,” Palmer added.
Meanwhile, property listings spent a median 50 days on the market in October, according to Realtor.com, the longest homes have been on the market in about seven months.
But since October, bond yields have plunged, sending mortgages rates tumbling too. That has helped thaw the housing market. On Wednesday, data from the Mortgage Bankers Association showed purchase activity and refinancing have increased.
Mortgage demand for new homes jumped in October as the inventory for existing homes remained depleted.
Mortgage applications for new-home purchases rose 39.7% in October on a year-over-year basis and were up 6% from the previous month, according to the Mortgage Bankers Association (MBA) Builder Application Survey for October.
“Home builders have been able to temper this high-rate environment by offering buyers rate buydowns and other incentives,” Joel Kan, MBA’s vice president and deputy chief economist, said in a statement. “We estimate that the pace of home sales increased for the third straight month to a 715,000-unit annual pace — the strongest sales month since May 2023.”
FHA applications reached highest share of new-home applications since 2013
In October, FHA applications represented 26.3% of all new-home purchase applications as homebuyers turned to new construction for more housing options. This is the highest share of FHA new-home purchase applications in a decade.
Conventional loans made up 63.6% of new-home mortgage applications while VA loans comprised 9.8% of new-home loan applications in October.
The average loan size for new homes was $390,225 in October, down from $397,550 in September
According to MBA estimates, new, single-family home sales were at a seasonally adjusted annual rate of 715,000 units in October. That’s up 12.8% from the September pace of 634,000 units. On an unadjusted basis, MBA estimates that there were 55,000 new-home sales in October 2023, up 7.8% from 51,000 sales in September.
However, higher mortgage rates sank builder confidence again in October, which fell to 40. In September, the sales pace of new homes climbed 12.3% compared to August, reaching a seasonally adjusted annual rate of 759,000. The data for new home sales is scheduled for Nov. 27.
MBA’s survey tracks new-home mortgage application volume from mortgage subsidiaries of homebuilders across the country.
Home appraisals play a crucial role in the real estate process, influencing everything from property financing to sales transactions. Whether you’re a first-time homebuyer or a seasoned real estate investor, understanding the basics of home appraisals is essential. In this guide, we’ll delve into the fundamentals of property valuation, demystifying the appraisal process and shedding light on its significance.
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A home appraisal is an unbiased assessment of a property’s market value conducted by a certified appraiser. The goal is to determine the fair market value—the price a willing buyer would pay and a willing seller would accept in a competitive market. Home appraisals cost anywhere between $300 to $500 and can take as long as a few hours to a few days depending on the condition of your home and the appraiser’s schedule.
Property Inspection:
The appraiser visits the property to assess its condition, size, layout, and overall appeal. They consider both the interior and exterior features, noting any upgrades or repairs.
Comparable Sales Analysis:
Appraisers research recent sales of comparable properties in the neighborhood. They compare factors such as size, age, condition, and location to determine the property’s value.
Market Trends and Conditions:
Appraisers analyze current market trends, considering factors like supply and demand, interest rates, and economic conditions.
Property Condition:
Well-maintained homes generally receive higher appraisals. In other words, if your home has nice curb appeal, updated features, and modern amenities then it’s likely it will get a higher appraisal. On the other side, structural issues or deferred maintenance can negatively impact the valuation.
Location:
Proximity to amenities, schools, and public services can influence and increase your property value. If your home is located in a desirable neighbourhood, within walking distance to shopping and parks then it will generally receiver a higher appraisal.
Comparable Sales:
Recent sales of similar properties in the area are a key factor. Appraisers consider the selling prices, conditions, and features of these comparable homes. The age of your home will also factor into its value.
Upgrades and Renovations:
Upgrades that enhance a property’s functionality and appeal can positively impact its appraisal value. Recent renovations should be accurately documented and communicated to the appraiser such as a finished basement, replaced doors and windows, the addition of a fire pit or outdoor fireplace, and a kitchen or bathroom remodel.
Mortgage Approval: Lenders use appraisals to ensure the property’s value aligns with the loan amount requested by the buyer.
Selling a Home: Sellers benefit from appraisals to set a realistic listing price. An accurate appraisal can facilitate a smoother selling process.
Estate Planning: Homeowners may need appraisals for estate planning, tax purposes, or division of assets.
Real Estate Investments: Investors rely on appraisals to assess the potential return on investment and make informed decisions.
Home appraisals are a critical component of the real estate landscape, providing a fair and impartial evaluation of a property’s value. Whether you’re buying, selling, or investing, understanding the appraisal process empowers you to make informed decisions and navigate the real estate market with confidence.
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The housing market in Boise is always evolving. As of the latest data, the Boise housing market presents a somewhat competitive landscape for prospective homebuyers, with houses receiving an average of two offers and being sold in around 21 days. This pace underscores a brisk but not frenetic market, allowing buyers some breathing room to make the right decisions at the right time.
The Boise housing market at a glance
A key indicator of market health, the median sale price of a home in Boise stands at $515,000, marking a modest year-over-year increase of 1.0%. This gentle price ascent reflects a market that is growing steadily, avoiding the pitfalls of sudden spikes or declines that can lead to instability.
Even more telling is the median sale price per square foot, which has seen a slight decrease of 3.8% since last year, possibly pointing to larger homes entering the market or a shift in the types of properties being sold.
The volume of sales tells a more nuanced story. In 2023, Boise saw 227 homes sold, a decrease of 19.8% compared to the previous year. This drop could reflect a variety of factors, including a potential shortage of inventory or a change in buyer sentiment. Nevertheless, the median days on market — a metric indicating how long homes are listed before a sale is agreed upon — has dropped from 34 to 21 days year-over-year, revealing that while fewer homes are being sold, those that are listed are moving quickly.
Competition in Boise’s housing market
Boise’s real estate market competitiveness is further clarified by the Redfin Compete Score™, which rates areas on a scale of 0 to 100, with 100 being the most competitive. Boise scores a 61, illustrating a market where homes often receive multiple offers but typically sell for about 1% below the listing price. Homes categorized as “hot” may sell for around the list price and go under contract in as few as 5 days, showcasing the desirability of certain listings.
Furthermore, the sale-to-list price ratio in Boise is 99.1%, up 1.2 points from the previous year, indicating that homes are selling close to their asking prices, a sign of a healthy market where there is a good balance between buyer demand and seller pricing.
Investing in Boise real estate
For those considering Boise as their next home or investment, these figures paint a picture of a market that is competitive but not overheated. The city’s real estate market is managing to keep pace with demand without succumbing to the volatility seen in other regions. This suggests a sustainable growth trajectory for Boise’s housing sector, making it an equally attractive proposition for buyers and investors.
Find a beautiful house in Boise
The Boise housing market is characterized by a stable yet competitive atmosphere, with homes selling relatively quickly and for near asking prices. While the number of homes sold has seen a downturn, the overall health of the market remains robust, reflected in the consistent sale prices and the competitive nature of listings. As Boise continues to attract attention for its quality of life and economic opportunities, its housing market is poised to maintain its steady course.
Renting in Boise
Turning our attention to the rental market in Boise, it also reflects the city’s broader economic trends and the influences affecting the housing market.
Rental markets in cities like Boise are typically influenced by several factors including the availability of housing, population growth and economic conditions. As home prices rise modestly, it can signal a corresponding shift in the rental market. Potential homebuyers who are priced out of purchasing may turn to renting, which can increase demand for rental properties and, subsequently, rental prices.
Average rent in Boise
In markets characterized by a competitive housing environment with rapid sales and close-to-list prices, rental properties often see high occupancy rates. Landlords and property managers may have the leverage to ask for higher rents, especially if the local economy is strong and the population is growing, which seems to be the case with Boise.
How the housing market affects the rental market
Additionally, when home sales decrease, as noted with the 19.8% year-over-year drop in Boise home sales, the rental market might absorb those who are waiting for the right time to buy or who prefer the flexibility that renting offers. This can lead to a decrease in rental vacancies, further pushing up rental prices.
However, it’s important to note that rental prices are also subject to regulatory changes, like rent control laws and the development of new rental properties, which can increase supply and potentially stabilize or lower rents.
Apartment rent ranges in Boise
$501 – $700: 1%
$701 – $1,000: 4%
$1,001 – $1,500: 29%
$1,501 – $2,100: 35%
$2,101+: 30%
Considering these factors, those looking to move to Boise should be aware of the potential for a competitive rental market. Prospective renters may face quick turnaround times on rental listings and should be prepared for a possibly dynamic pricing environment. Like the housing market, the rental market in Boise is likely to be resilient, reflecting the city’s economic stability and appeal as a growing urban center in Idaho.
Find the best spot for you in Boise
Those considering Boise as their home should weigh the pros and cons of renting versus buying in a market that is robust and thriving, with both sectors offering opportunities and challenges that reflect the city’s desirability as a place to live and work.
If you’re ready to settle down in Boise, find your home in just a few clicks with Rent.
Real estate professionals from RE/MAX Real Estate Solutions will soon host their 12th Annual Thanksgiving Food Drive to support local community organizations in the neighborhoods where they work and live. This year, the need for help is more significant than ever as the food banks serve more families. Agents will accept food and check donations from October 16th to November 15th, 2023.
Ben Hess and affiliated agents are leading the 12th Annual Thanksgiving Food Drive at each of their three offices. The food drive will benefit local community support organizations in the neighborhoods where the agents work and live:
The North Hills Office of RE/MAX Real Estate Solutions, located at 1014 Perry Highway, Ross Township, PA 15237, supports the North Hills Food Bank. Donations in the form of checks should be made payable directly to the North Hills Food Bank.
The Lawrenceville Office of RE/MAX Real Estate Solutions, located at 4020 Butler Street, Pittsburgh, PA 15201, supports Our Lady of the Angels Food Pantry. Donations in the form of checks should be made payable directly to Our Lady of the Angels Food Pantry.
The West Hills Office of RE/MAX Real Estate Solutions, located at 2000 Cliff Mine Rd, Pittsburgh, PA 15275, supports the West Hills Food Pantry. Donations in the form of checks should be made payable directly to the West Hills Food Pantry.
Agents from the three offices will accept food and check donations from October 16th to November 15th, 2023.
Currently Needed Items:
Orange, Apple, and Cranberry Juice
Canned Black, Garbanzo, Kidney, and Navy Beans
Canned Beets, Carrots, Pumpkin, and Sauerkraut
Canned White Potatoes and Yams
Dry Noodles and Macaroni
Saltines, Ritz or Wheat Crackers, and Cookies
Gravy and Broth in Cans
Manwich, Ketchup, Mayonnaise, Mustard, and Salad Dressing
Plain Tomato Sauce, Paste, and Diced or Crushed Tomatoes
Boxed Potatoes – Scalloped, Au Gratin, or Instant Mashed
Oil, Flour, and Sugar (1 lb. or 2 lb. size)
Cake Mix and Frosting
Jell-O and Pudding
Canned Applesauce (No squeeze, individual cups, or large jars)
Tea and Coffee (Ground – no whole beans or Keurig Cups)
Plain Water – not flavored or sparkling
Toiletries – Hand Soap, Deodorant, Shampoo, Toothbrush/Toothpaste, personal items
Laundry Detergent and Cleaning Supplies (Windex, Comet, Pine-Sol, etc.)
In addition to the Thanksgiving Food Drive, all RE/MAX Real Estate Solutions offices participate in the Children’s Miracle Network “Miracle Offices” Program (CMN). Agents voluntarily donate some of their commissions to CMN, benefiting the Children’s Hospital of Pittsburgh of UPMC. Since 1992, RE/MAX agents have donated over $200 million to Children’s Miracle Network Hospitals®. Every dollar donated stays local.
RE/MAX Real Estate Solutions is a franchise of RE/MAX, LLC, a global real estate organization with over 140,000 sales associates in 115+ countries.
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Mihaela Lica Butler is senior partner at Pamil Visions PR. She is a widely cited authority on public relations issues, with an experience of over 25 years in online PR, marketing, and SEO.She covers startups, online marketing, social media, SEO, and other topics of interest for Realty Biz News.
The third quarter of 2023 shows significant shifts in the performance of teams reflecting both the decline in housing sales activity and the pressure on margins occurring throughout the brokerage business, according to the StreamlinedQuarterly Team Benchmarking Report, which looked at the financial performance of more than 200 teams across the nation.
This report covers the period from April 1, 2023, to June 30, 2023. In five of the six size categories of teams both gross profit margins and net income margins declined from the second quarter 2023 results.
Steamlined, based in Arizona, has a roster of hundreds of U.S. real estate teams and individual agents as clients for their accounting and bookkeeping services. The firm confirms actual financial and operational details of these businesses and assemble the data in useful benchmark studies to help their clients assess how effectively they are operating.
“This is extremely valuable information, not only for teams but also for the brokerage firms with whom they are affiliated,” says Steve Murray, senior advisor to HW Media. “A clearer understanding of the performance of teams helps everyone understand the impact of the growth of the organization and performance of teams.”
The latest financial insights for the residential real estate teams and agents present a picture of resilience and strategic adaptability, even in the face of shifting economic landscapes.
To note, the financial data sets analyzed in Q3, 2023 are the same number of data sets in Q2, 2023. This consistency is a testament to the solid foundational practices that these businesses have established, which is crucial for long-term sustainability.
Despite the anticipated reconfiguration in revenue streams—with a notable contraction in the number of teams closing between $800,000 to $1.5M in annualized revenue—the broader context remains one of continued activity. This realignment can be viewed as an evolution in market dynamics, with sales dispersing into lower revenue categories (Gross Commission Income), teams and agents are still running profitable companies. For those managing real estate businesses, this signals an environment ripe for strategic repositioning and diversification.
Most teams saw a decrease in gross margin
Teams in five of the six size categories saw a decrease in Gross Margin (GM), with the smallest sized teams (annualized revenues of less than $300,000) having the greatest decline from 83% to 76%.
Teams with annualized revenue between $800,000 and $1.5 million were the only category that experienced an increase, with their GM rising from 65.1% to 67.2% from the second quarter to the third quarter.
“It is normal to have gross margin decline during the course of a calendar year,” says Steve Murray, founder to RTC Consulting and a senior advisor for HousingWire. “As agents grow their volume during the course of a year, the share of gross revenue paid to them rises under most commission plans. This is also in line with what occurs among brokerage companies, in general. The only category that saw a rise ($800,000 to $1.5 million) is also the category that had a significant decline in the number of teams in the category.
“We suspect two things may have happened,” says Murray. “Some teams in this category suffered disproportionately from the decline in sales and dropped down in size leaving a smaller group of better run teams.”
On the other side, a number of these teams grew larger and moved into a larger category. “Weaker firms shrank and stronger teams grew faster than the market,” says Murray. “The remaining teams in the category were the strongest of the category.”
Net income declines
In five of the six categories Net Income (NI) declined with the smallest category of teams seeing the largest absolute decline from 49.3% to 40.6%.
In terms of percentage decline, however, both the smallest teams and those teams with annualized revenues of $1.5 million to $3 million had roughly the same decline of approximately 20%.
The correlation seen in the first two quarters of 2023 remains true for the third quarter. The smallest teams have the highest NI percentage while the largest teams have the smallest NI percentage.
“The combination of the decrease of gross margins and the increase in operating costs had the expected impact of lower profit margins for teams in five of the six categories. The decline in annualized existing home sales also had an impact that may have been the biggest impact.
“The third quarter of a calendar year is normally the highest sales period of the year, but this year, we saw housing sales decline versus both Q2 2023 and Q3 2022,” adds Murray. “Given all these factors it is surprising how durable the results were.”
Shift in teams in each category
One interesting outcome of the Q3 2023 results was the significant shift of the number of teams in each category. For instance, teams in the size category of revenues between $800,000 to $1.5 million declined from 66 in the Q2 2023 to 46 in Q3 2023. Other big movements were that the number of teams with annualized revenue or $300,000 to $550,000 increased by 14, going from 30 to 44. Teams with annualized revenue of $1.5 million to $3 million also increased by eight, going from 45 to 53.
“The significant shift of a large number of teams out of medium-sized teams to both smaller and larger team categories would seem to indicate that not all teams are alike,” says Murray.
“Under the stress of declining home sales and fewer leads at the top of the funnel, some teams owners are as likely to step up their own listings and sales to generate the income to finance their team and their lifestyle. This is not unusual for teams or any real estate agent’s practice.”
Some teams will prosper in this kind of a downturn and others will seek to optimize profit in the short run by cutting costs and increasing personal production rather than by investing scarcer dollars into growth for growth’s sake.
Teams in all six categories had an increase in their operating costs. Teams which had the largest increases in costs were those with annualized revenues between $550,000 – $800,000 (costs up 2.8 points from 30.7% cost of operations to 33.5%) and teams with annualized revenues between $1,500,000 – $3,000,000 which saw their operating costs rise from 29.0% to 31.5%)
Strategic financial oversight at play
The trend towards decreased profitability percentages does not overshadow the evident strategic financial oversight at play. Businesses are clearly demonstrating proactive expense management, an essential skill in ensuring business health. This foresight is particularly evident in the way companies have leveraged the scalability of their variable expenses, ensuring they remain positioned to maintain profitability. This ability to pivot and adapt cost structures in response to revenue fluctuations is a hallmark of agile and forward-thinking businesses.
As presented in the data, an increase in operating expense percentages across all tiers is certainly a challenge; however, it also reflects a calculated investment in two critical growth areas: Salaries and Lead Generation.
By maintaining these areas, businesses are investing in their workforce and future sales pipelines, laying the groundwork for future growth and market share expansion.
Moreover, the minimal fluctuations in general and administrative expenses reveal a tight control over the day-to-day running costs, with businesses showing they can keep a lid on the majority of their expenses despite a tougher economic climate.
Overall, the narrative here is not one of decline but of calculated adjustment and strategic realignment. The real estate businesses that are holding their ground in these times are those that are demonstrating agility, financial acumen, and a commitment to investing in their core assets—people and prospects.
With these strategies in place, there’s every reason to be optimistic about the capacity for real estate businesses to navigate current market shifts successfully and emerge even more resilient.
Streamlined, RTC Consulting and HWMedia are teaming up to share this data with our readers to help create transparency in the results of over 200 teams. We will publish these results on a quarterly basis roughly 45 days after the end of each calendar quarter.
David Pittiglio is the CEO of StreamlinedBusiness Solutions.