Not related to the mortgage business... or is it?

I came across a free e-book yesterday that I thought might benefit some of you.  Thriving on Less by Leo Babauta is a condensed version of The Power of Less.  I became intrigued with this concept when we decided, as a family, to spend the summer of 09 in Alaska.  This had been a dream of mine for some time, but the cost and time factors made it seem impossible.  So... through quite a bit of analyzing and research, I came up with a plan to make the trip (without using savings or going into debt).  The whole family was involved throughout the process to live on less for this BHAG (big, hairy audacious goal).  What a wonderful experience it was!  And I don't just mean the trip.  My 14 and 10 year old learned valuable lessons about working hard to earn money, save and limit expenses.  The challenge was difficult and fun at the same time.

I had a number of friends ask if I would go back to my consumerism ways after the trip and yes, I have to some extent, but many of the habits have stayed with me. For that I am grateful.

So WHY do I bring this up on a marketing blog?  I've been in the mortgage business since 1991... and remember specifically in 1993 and 2003 when you could drive by any good-sized mortgage company and the employee parking lot was full of BMW's, Lexus' and other bright, shiny new cars.  Now - don't think I'm knocking nice cars.  There's a Lexus in my garage and I love it. 

BUT - what I have seen that concerns me is the number of originators that live loan to loan, paycheck to paycheck.  When things get busy and loans start closing, they spend like there's no tomorrow.  This is common and actually we've probably all done it to some extent at one time or another.  The difficulty is that in our industry one good month does not guarantee another good month.

Yesterday, I had a great conversation with a loan officer in California (talk about a feast and famine market!)  He said that he feels he is finally running his business in a financially smart way.  He considers refinances to be his gravy and purchases to be his actual paycheck necessary to pay the bills.  So if there aren't many purchases in the pipeline, he gets busy marketing and working on his business.

Where are you financially?  Do you have six months living expenses in the bank?  Every commissioned person should have this - at a minimum.  If you are struggling with debt, use this as a motivator to work harder and grow your business.  We have such opportunity in this industry to create our own income.  There really is no ceiling if you are willing to pay the price with hard work and LOTS of pig-headed discipline and determination!  (favorite quote from Chet Holme's The Ultimate Marketing Machine)

Comments

[iron]

Even I also Struggled in my life. My business ideas are really great. Thanks for sharing such great ideas here int his article.

[Carolyn]

I know I've struggled with this... so yes, it is related to our business and I really appreciate you ideas and your blog!!