What is an essential step for a new real estate professional preparing for a commission-based career?

Setting a realistic budget, estimating potential transactions, and saving sufficient funds for at least six months is crucial for a new real estate professional entering a commission-based career. Real estate can often involve fluctuations in income, especially at the beginning when building a client base. By preparing financially through budgeting and having a savings cushion, new professionals are better equipped to handle months where commissions may not be flowing in.

This approach allows them to focus on developing their skills, building relationships, and establishing a market presence without the immediate pressure of financial instability. It fosters a more strategic approach to their new career, allowing them to make informed decisions about their time and resources.

Other choices may seem appealing but do not provide foundational support for a new career. For example, establishing a high-interest investment account might not directly address the more immediate financial needs during the startup phase. Focusing solely on marketing strategies without a financial plan can lead to unnecessary stress and pressure. Lastly, spending on luxury business-related items can drain resources needed for essential expenses and does not contribute to stable income management during the initial challenging period in real estate.