During my 18 years in the mortgage business, I have seen many ups and downs and we have all felt the feast or famine cycles. After working with thousands of originators on their marketing and production goals, one of the primary struggles I see has nothing to do with marketing or even production. It has to do with SAVING.
Many of you are doing very well right now and your paychecks will reflect this. But remember that THIS WILL NOT LAST. The very best piece of advise I can give you is to think long-term. Here is a formula that I have used with my coaching clients and myself that has proven to be extremely effective.
1. Figure out the minimum you need to pay your bills and living expenses each month.
2. Estimate the number of loans needed to close to reach this goal. This is your MINIMUM production each month.
3. When you close MORE than this, put half of that income into a savings account.
4. Use the other half for paying down debt, vacation, toys (usually the kind with motors), etc.
5. Do NOT go into debt for vacations, toys, etc. thinking you will continue to have high income and be able to make the payments. Do NOT increase your monthly debt load. This creates unnecessary stress when production goes down.
There are many in our industry that have lost their homes over the last year. I am amazed at the sad financial stories that involve people with mortgage backgrounds.
By following this simple formula, you will feel more in control of your business and be able to continually work on your production in a healthy way. You won't worry about slow times and your confidence will translate into less wild swings of income. Your focus will be helping others get into a home rather than just feeding your family. And believe it or not, this will make you a better originator.
OK.. enough nagging. Go get some more loans!