People with highly variable incomes, what's your style?

suicidekings

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I've known people who are in sales, or other highly cyclical businesses where sometimes you're rolling in money and sometimes you're in a broke-ass drought. Do you roll with it that way, feast and famine, boats and toys when you're up and selling stuff off when you're down? Or do you save while you're making money to fund yourself through the down times?

You thinking about branching out on your own and starting an agency???

I can't add any value here as my career has been salaried but I am itching to transition fully into real estate (why I sold my track toy, thought my salary job was in jeopardy). Right now the market is so hot its easy to be successful so I want to do both full time until we hit a down turn. If I can make good money in a down turn then I know im set. If not then Ill be glad I hustled two full time jobs and stacked away all the cash when times were good.

Not to mention I miss the track so I want another track toy!!!
 

Riddick

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It should not make a difference whether you live on a fixed income or commission. Everyone should have a budget and as long as you stay within it you should do fine. I can tell you by not having any debt makes a big difference, car payments and credit cards add up quick. If you pay cash for everything its very easy to know how much income you need to live off of.

Just because you make 200K dollars a year does not mean you have to spend 200K a year. My wife and I both work but we basically live off one pay check. I never got into the whole Dave Ramsey thing but I essentially did my own plan very similar and it has worked very well. The key is to set a budget and stick to it regardless of how much income you bring in.
 

JJackson515

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I suppose you could say I'm 'commission based" as a business owner. A lot of my cars, mods, toys, etc are paid for by the business being in the automotive industry. I take home all profits outside of what I like to have for operating cash. Normally I invest half my take home, put away 1/4 into actual savings and have the rest for the wife to piss away. I like to have 2.5 years worth of bills in cash / savings, so whatever I have over that at the end of the year I transfer into my investment account.
 

Outlaw99

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You thinking about branching out on your own and starting an agency???

I can't add any value here as my career has been salaried but I am itching to transition fully into real estate (why I sold my track toy, thought my salary job was in jeopardy). Right now the market is so hot its easy to be successful so I want to do both full time until we hit a down turn. If I can make good money in a down turn then I know im set. If not then Ill be glad I hustled two full time jobs and stacked away all the cash when times were good.

Not to mention I miss the track so I want another track toy!!!
Exactly what I did. 1st started in real estate back in 2007, and got back in 2015. Pick your agency wisely. Avoid big agencies like Keller Williams and the like. They are designed to make money off you. Go with a smaller agency with good marketing and branding.

Do not buy in to lead provider programs like zilliow. Wake up do the work and you'll be fine. Your 1st 2 years will make or break you. If you survive 2 years you're doing better than 60% of people trying to make it. 20% of the agents here do 85% of the volume.

Sent from my SM-G986U using the svtperformance.com mobile app
 

earico

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It should not make a difference whether you live on a fixed income or commission. Everyone should have a budget and as long as you stay within it you should do fine. I can tell you by not having any debt makes a big difference, car payments and credit cards add up quick. If you pay cash for everything its very easy to know how much income you need to live off of.

Just because you make 200K dollars a year does not mean you have to spend 200K a year. My wife and I both work but we basically live off one pay check. I never got into the whole Dave Ramsey thing but I essentially did my own plan very similar and it has worked very well. The key is to set a budget and stick to it regardless of how much income you bring in.

This man gets it. The amount of money you make doesn't matter. It's called living within your means and setting yourself up for the long game. In the beginning like 20 years ago I bought a cheap 30 year old house and remodeled it myself. It was my first home. Sure I was approved for double what I paid and could have gotten a nicer and newer home with my income at the time but I simply chose to wait. This is the problem American's have. No damned self control.

Fast forward to today and my house payment is less than 10% of my income and I support a family of 4, including myself, on one albeit large income. Wife hasn't worked in 5 years. Not bad considering I had $5 in my checking and nothing else at one point back in 2005 when I first quit my job and starting my self-employment.

To answer the OP. Just keep 3-6 months of income on hand as a buffer. I find that works for me. If the surplus starts to rise then I cut some out and invest or treat myself.
 
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Fat Boss

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Holy balls. 9300/month 7200/month... I wish. I bring home less than 2k and month. Hell to find a job making 3500 month bring home, I’d be ecstatic


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If you're mechanically inclined, go to engineering school until you're making as much as you want. It really is that simple. If you're making twelve bucks an hour you really, really need to get some skills. Hell, you can flip burgers around here and make a LOT more than that.

My pay is partially dependent on the stock market since I work for a tech company that gives us stock. But, it'd be a bad year if I made less than $15k/mo. I plow $4400/mo into my house payment/investment, about $1500/mo into my 401k, and about $2000/mo into the stock purchase plan. I want to be able to retire someday. Just about everyone else I know seems to either sit in their crappy job or industry and not make an effort to do better, earn more, and eventually retire.

SS is the biggest scam in our countries history. I bet on average you see less than 40% before you die that YOU put in and then THEY keep the left overs. TOTAL BS!

One would think it HIGHLY SUSTANABLE being that what you put in is INCREDIBLE MORE than what you get out. Then the question is...WHERE IS IT GOING? Should have never been able to use it as a slush fund and more should go to the contributors and not those who did not contribute.

WTF are you talking about? The average person gets a LOT more out of SS than they put in. The exceptions are people who die early.
 

Adower

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I am not in that situation as I am paid salary. However, if I were I would probably look at my several years of income and take the average of those two years. Set a budget based off whatever number that is with the cookie cutter percentages that you can find on the internet.
 

Adower

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This man gets it. The amount of money you make doesn't matter. It's called living within your means and setting yourself up for the long game. In the beginning like 20 years ago I bought a cheap 30 year old house and remodeled it myself. It was my first home. Sure I was approved for double what I paid and could have gotten a nicer and newer home with my income at the time but I simply chose to wait. This is the problem American's have. No damned self control.

Fast forward to today and my house payment is less than 10% of my income and I support a family of 4, including myself, on one albeit large income. Wife hasn't worked in 5 years. Not bad considering I had $5 in my checking and nothing else at one point back in 2005 when I first quit my job and starting my self-employment.

To answer the OP. Just keep 3-6 months of income on hand as a buffer. I find that works for me. If the surplus starts to rise then I cut some out and invest or treat myself.

I agree. Most American's cannot resist instant gratification, thus the credit card was born...lol
 

suicidekings

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Exactly what I did. 1st started in real estate back in 2007, and got back in 2015. Pick your agency wisely. Avoid big agencies like Keller Williams and the like. They are designed to make money off you. Go with a smaller agency with good marketing and branding.

Do not buy in to lead provider programs like zilliow. Wake up do the work and you'll be fine. Your 1st 2 years will make or break you. If you survive 2 years you're doing better than 60% of people trying to make it. 20% of the agents here do 85% of the volume.

Sent from my SM-G986U using the svtperformance.com mobile app

Ive been in Real Estate for 10 years now. Just always did it on the side when I needed extra fun money. Its how I built my 85 was off all my RE commissions. I make decent money for putting nothing into lead generation so now I've put some effort into it I got 5 clients right off the bat.

But yes, I have been with a small outfit for quite some time and I love it.

No, it's just something I've always been curious about.

Ahhh, Roger that.
 

mysticsvt

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If you're mechanically inclined, go to engineering school until you're making as much as you want. It really is that simple. If you're making twelve bucks an hour you really, really need to get some skills. Hell, you can flip burgers around here and make a LOT more than that.

My pay is partially dependent on the stock market since I work for a tech company that gives us stock. But, it'd be a bad year if I made less than $15k/mo. I plow $4400/mo into my house payment/investment, about $1500/mo into my 401k, and about $2000/mo into the stock purchase plan. I want to be able to retire someday. Just about everyone else I know seems to either sit in their crappy job or industry and not make an effort to do better, earn more, and eventually retire.





WTF are you talking about? The average person gets a LOT more out of SS than they put in. The exceptions are people who die early.
Maybe the average person you know, lol. I seriously doubt anyone who puts into it for 40+ years will get half back.
 

blk02edge

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My ups and downs are based on overtime which is sometimes there and sometimes not. They ask me daily right now and to come in early or work late. I could have 12 hours days every day if wanted but I'd like to live a little. Thank God Bosch is an employer where more than 12 hour days is against policy and does not happen. Boeing worked me 4 months straight 8-16 hour days. SCREW BOEING. That being said...I worked some overtime this last pay period and my gross pay on tomorrow's check is 3400 for two weeks. My take home is 2k due to all the DAMN taxes, 401, Dental...and God knows what else. My Military retirement pay the 2k house payment so usually I'm only broke from buying toys.
Wow thats more tax than I pay in canuckistan
 

Fat Boss

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Maybe the average person you know, lol. I seriously doubt anyone who puts into it for 40+ years will get half back.

Look it up. There's estimates all over the net. The more money you make and pay in, the less you get out, but you still get more out ON AVERAGE.
 

Rct851

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100% commission. I’m 32 and the only thing I really care to buy at this point is retirement so I spend as if all I’ll ever make is my worst month and pretend like that’s all there is.

To accomplish this I do prioritize paying off my house far more aggressively the. I would assume the average salaried person on a 40 year career path would care to do. Luckily in 10 year at the job I’m at we’ve never seen a time too terribly lean but you never know if that’s next month 3 years 10 years etc. so not having any debt including house and transportation would be a lot more security for me.
 
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mysticsvt

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Look it up. There's estimates all over the net. The more money you make and pay in, the less you get out, but you still get more out ON AVERAGE.
I spent some time earlier check it out. Those who make min wage or less tend to get more than they put in on average. Obviously it isn't based off what you've put in but what they think people should get. Not sure I agree with that, rather socialistic. I doubt however I will even break even. What, you draw out at 62 and the life expectancy of a white male is 75.3 years. So I'll drawl 12-13 years of SS. Let's hope I start eating better. Curious if I will drawl less because of my Military Retirement.
 

blk02edge

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It's not just ta
Not just taxes, but mostly.
2 Weeks
Fed 340.00
SS 208.00
Medicare 50.00
State 194.00
Yea, im counting our ei and pension as well. Im in the highest tax bracket too. I guess it varies state by state by quite a lot.
 

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