How do I remove guilt when spending on leverage?

In the fast-paced world of real estate and entrepreneurship, leveraging resources can be a game-changer. However, many leaders often approach leverage with a sense of guilt. This stems from a scarcity mindset or the fear of not getting an immediate return. But when we pivot our perspective, you can release that fixation on cost and welcome the potential income. In my methodology, I teach this core concept: I’m not here to help you save money, but I am here to help you make money.

Understanding the Types of Leverage

Leverage, in the context of your business, centers solely on ensuring you maximize your productivity and efficiency. Leverage can fall into one of these five categories:

• Time

• Business

• Personal

• Financial

• Relationship

These areas have their unique qualities that, when strategized and planned accordingly, streamline your effectiveness as a leader. This could mean hiring an assistant, investing in marketing tools, or using advanced real estate software. The key is to understand that leveraging these resources strategically enhances your ability to generate more income.

The Scarcity Mindset and Its Impact

A scarcity mindset can impact decision-making by blinding you to bigger and better possibilities. Maybe you grew up in household with fluctuating incomes, or maybe you, over time, developed a fear of never having enough money. This psychology carries over into the different years of our live and can make us hesitant to spend on anything that doesn't have a clearcut return. However, this mindset is also a constraint when it comes to growth.

Shifting the Focus: From Spending to Earning

One of the first steps we can take as we welcome the opportunity to spend on leverage is changing the narrative. Instead of focusing on how much you are spending or how much money is outgoing, focus on how much more you’ll be making with the free time leverage provides. This is what I call the Leverage Formula.

1. Calculate Your Dollar Per Hour Rate

First, determine your average hourly rate and quantify how many hours per week you work.

2. Identify Your Leverage’s Dollar Per Hour Rate

If you hire an assistant at $20 per hour for 20 hours per week, then: 20 hours × $20 per hour =$400 per week

3. Cross-Reference Your Potential Earnings with Your Newly Acquired Free Time

What can you do with 20 hours back every week? Let’s suppose you could close another transaction each month with that additional time. How does that impact your payday?

4. Simple Math Leads to Sizable Income

Finally, compare the cost of leverage with your potential earnings: If your monthly cost for an assistant is $1,600 but you make an extra $10k a month with that freed up time, then your net earnings = $8,400.

Despite it feeling like you can’t afford the leverage, the reality is that you can’t afford not to.

Overcoming Guilt: The Mindset Shift

To overcome the guilt associated with spending on leverage, it's important to adopt a growth mindset. Here are some practical tips to help Ashley and others make this mindset shift:

1. Recognize the Value of Your Time: Understand that your time is a valuable resource. By delegating low-value tasks, you can focus on activities that generate higher returns.

2. Set Clear Goals: Define your goals and an attainable path to reach them. This will help you see the bigger picture and understand how leverage will help you along the way.

3. Track Your Progress: Regularly monitor your progress and recognize the impact of having that additional leverage. Seeing positive results will reinforce the benefits and keep you motivated and focused if you find yourself backsliding into scarcity (and it’s okay if you do!).

4. Educate Yourself: Invest time in learning about successful leverage strategies from industry leaders and coaches. Knowledge can empower you to make the most informed decisions for your situation, and accountable relationships help you along the way.

Embrace Leverage for Greater Success

By understanding the true value of your time and recognizing the long-term benefits of leveraging resources, you can overcome the scarcity mindset and achieve those milestones that transform your business and your life.

Now that you have the tools to shift your mindset, you’ve realized you don’t know how to calculate your dollar per hour rate as a real estate agent. Stay tuned as we’ve got all the resources on how to figure out your dollar per hour rate!