tmon

Sales Manager

Valued Contributor

Budgeting - Something sales reps take seriously?

I'm a sales leader and I'm always amazed at how folks who earn commissions burn'em as quickly as they earn'em

I offer financial coaching for my sales reps, and I want to get more of them involved if I can - so here's my question, out of curiosity:

Do people here think budgeting your money is important enough to have someone train you how to do it the right way? Or, do you keep it simple & just crush more sales to compensate anytime you need more money?

I seem to have 25% of my team that has a desire to budget their money effectively, and the other 75% just want to YOLO that $$$ as soon as it touches their account - they tend to grow sales #'s, but their wealth stays stagnant, so they're doomed to do this forever (it would seem)

No wrong answer, simply want to gauge how serious the community is about managing money in a way so we sales reps don't have to work until we die (unless we choose to, of course!)

If you think it's important, how would you sell budget training to your team? Or, maybe to your future self?

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54 comments

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CoorsKing

WR Officer

14

Retired King of the Coors Knights

I just follow the same formula: 10-15% 401K, 15% ESPP, 10% misc investments and liquid savings, and then the rest after bills are paid is "fun money", but I never use it all so any left over goes back into the "misc" investment catagory.

tmon

Catalyst

0

Sales Manager

Short & Sweet! If only I could get folks interested in doing the math in the first place haha

paddy

WR Officer

7

Director of Business Development

Yes I think it's important to have a coach for budgeting. Whether or not that's your manager is up for debate. If you have a manager kind of enough to offer this guidance then great but that's also not their main job. That's kind of on you to go out and learn how to budget.

tmon

Catalyst

6

Sales Manager

100%! I started offering it back in 2018 as I saw the burnout increasing on my team. The more sales folks made, the flatter their bank accounts stayed. Seemed to ease a lot of mental/spiritual pressure on folks as they took back control of their money

paddy

WR Officer

2

Director of Business Development

Groovy. You sound like a solid manager

tmon

Catalyst

0

Sales Manager

That's debatable, but I appreciate the vote of confidence haha

Salespreuner

Big Shot

2

Regional Sales Director

Yes me too. Coach helps budget in a wiser and better manner

tmon

Catalyst

0

Sales Manager

Sometimes folks just need a little help & guidance (& some accountability!) when learning this stuff, glad you agree!

Salespreuner

Big Shot

0

Regional Sales Director

Absolutely 💯

Tres

Politicker

3

Account Executive

First of all, amazing job on your part to offer financial coaching for your team. I've never heard of that, but sounds like you're an awesome leader. One thing my parents said: "it's not a saving problem, it's a spending problem" so I would focus on spending habits and ways to treat themselves after a big comish without blowing the whole thing

tmon

Catalyst

1

Sales Manager

Hey, someone has to do it! I'm glad you think it's a good idea, my team (folks who have participated, anyway!) seem to appreciate it.

It's not like we learn about money in school anymore. You're a lucky one to have parents who helped instill great advice early on - many of us just learned the hard way! You're 100% right, if you manage the spending, everything gets taken care of

Rallier

Politicker

2

SDR Manager and Consultant

I have to admit that I'm not where I should be with this. I have a 401k from an old company, a Roth IRA, crypto, and a healthy amount in my savings. But I still feel like I have absolutely no plan when it comes to this kind of stuff

tmon

Catalyst

2

Sales Manager

I'd argue you're way ahead of the game based on what you just laid out! If you're looking for a next step, here's my reco:

- Ask yourself what "Financial Freedom" means to you. Decide on a couple big picture things over the coming weeks. (is retirement important? when? where do you want to live? do you want to work when you want to, or because you have to? what is important financially? what do you want your life to look like before you die?)

- Do an audit of your spending over the last 3 months (everything - all bank/credit accounts, cash, venmo, etc.)

- Figure out the averages you're spending in big, easy-to-understand categories

- Identify low-hanging fruit where you can cut back on spending on things that aren't adding value and move that savings toward your financial goals

Over time, you'll learn to cut out the crap that doesn't bring value into your life financially. Like I mentioned in a previous comment though, for the love of God, BUDGET FUN MONEY!!

If you don't give yourself financial room to have fun, you'll quit on the budget process in about a month

Good luck! Happy to help if you want an extra set of eyes on the process

Rallier

Politicker

2

SDR Manager and Consultant

This is all super helpful! Thank you so much! I haven't done an audit of my spending in a long time so this is a great place to start for me.

BigCheese

Notorious Answer

1

Agency Recruiter

Man, I need to get my budgeting in check. I've been bad with money as of late. The more I'm making, the more I feel I have to spend. Feeling cursed to be successful right now.

tmon

Catalyst

0

Sales Manager

I was the same way for a really, really long time - you aren't alone! Helps tremendously to have a plan, no matter how simple it is. Too easy to work for years on end and have nothing to show for it financially (coming from experience)

tmon

Catalyst

0

Sales Manager

PS: Happy to help on this if you could use a 2nd set of eyes on the budgeting process. It's really more about defining what's important/impactful for you financially, and then working backward from there to set up good habits/systems for reaching those goals!

ChunkyButters

Tycoon

1

AE

I budget. Been doing it since the day I graduated college and had more expense then income. I'm definitely the outlier from my friends and coworkers.

Budgeting really depends on personal goals though. The quality of the budget and use will depend on how much they want to hit targets or save or adjust spending. I'd sell it around the goals (what do they want and when do they want it).

I use YNAB and have been for the last 5 or 6 years. I really like the interface, integrations, and AI. It's made budgeting quick and easy for me. Probably spend 5 mins every 3-5 days adjusting and editing my budget there.

Plug: Have a referral in YNAB if anyone wants to check it out.

tmon

Catalyst

0

Sales Manager

It's like sales: Do you have a goal? If not, you probably won't reach it.

Once you figure out what you want from life, financially, it's easier to get the mindset to manage your money. Glad you have always been on top of it! Life is so much more enjoyable when money is managed well

Chep

WR Officer

1

Bitcoin Adoption Specialist

Got my 401k maxed with the company match, 11% of my paycheck goes to my brokerage account, and the rest I use for bills, enjoyment, etc

tmon

Catalyst

1

Sales Manager

You're way ahead of the game! Great work!! "Set it & forget it" is an amazing thing when you watch what it does over time

Chep

WR Officer

0

Bitcoin Adoption Specialist

Thanks Tmon appreciate the kind words!

Kiona

Opinionated

1

Head of Business Development

A budget is 100% the way to go - at minimum 20% for the future (doesn't matter if its 401K, IRA, Company Shares/Stock, Brokerage that you dont touch, HSA investments) - Unless you still wanna sell from the rocking chair on the porch.

Give yourself fun money too - after the savings are safely stored away and the bills are paid. You dont want to regret your spending and I promise, watching your savings grow WILL FEEL REWARDING.

tmon

Catalyst

0

Sales Manager

You gotta have fun money!! I tell my folks who go through my coaching program that if you don't budget for fun you'll never have any - that's why so many people can't stick to a budget in the long run.

You're on top of it, great work!

TheVanMan

Good Citizen

1

Corporate Account Executive

I use a written budget down to the penny. With that said, I don’t expect everyone to do so. I think the biggest way to help out is silo your money in an automated fashion.

At a minimum you need to be setting aside 10% of your income into a 401k or ROTH IRA, not including your employer match. I do not recommend buying individual stocks because they require a lot of time to manage, specifically during selling hours. ROI is much better on selling than risky day trading.

You should also always have a cash goal in mind, like a new car, home down payment or even something as simple as a new computer. Figure out when you want to complete that goal and have your employer automatically deposit the amount you need to save into a separate account. This way, when your goal date comes you have everything you need to make that big purchase. This creates a really rewarding feedback loop of associating work with personal outcomes.

If you do these two things, you will be miles ahead of materialistically obsessed cryto bro you work with.

tmon

Catalyst

1

Sales Manager

Love it. I agree, 10% of your GROSS income is an amazing number to target - really hard to not save/build tremendous amounts of money over time if you can pull that off.

I also use a written budget w/my wife each month. Very old school, but it works for us! That's the whole deal, figure out what works for you, systemize it, and run with it.

Great idea with cash goals. Get the emergency fund done, but ALWAYS have another goal to chase down! Without setting goals, we'll never reach them.

Thank you for the feedback!

LordOfWar

Tycoon

1

Blow it up

No one wants to save money when you're young and making paper, but later in life you will kick yourself over all the dumb shit you bought and threw away vs putting some money away to grow in smart, tax-free investments.

The book "The Richest Man In Babylon" changed my perspective on this, but so did having a kid and buying my first house. Each person needs to find out WHAT they want as well as HOW to do it. Often one does not occur as close to the other as it would seem.

By providing education and resources to your team means you are setting them up for success when they do want to save. Incentives like employer matching for retirement savings can help swing those on the fence, but there will always be the YOLO-ers out there living paycheque to paycheque.

tmon

Catalyst

1

Sales Manager

Preach! Money becomes more important as your responsibilities rise. But, like you said, if you get ahead of it life is just so (SO) much easier.

We can't help folks who don't want the help, but I'm trying to think of ways to inspire more action on my team so we can help provide more positive financial impact in their lives beyond just their paycheck

We'll see if we can pull it off!

CCP

Opinionated

1

VP, Business Development

I think it depend on life stage... I didn't save a penny in my twenties and had A LOT of fun. Trips, nice dinners, going out with friends etc. And I don't regret it at all. Now at 36 with a very responsible wife I've become a saver/investor. I even got life insurance when my daughter was born. Look at me being an adult!

All that to say, everyone is different and as we age and grow, our priorities shift so there's no right or wrong way.

tmon

Catalyst

1

Sales Manager

#Adulting

No doubt, stage in life makes a huge difference! Priorities for me in my 20's included, in order:

- What bar I'm going to tonight
- What bar I'm going to tomorrow

Now it's more like, when will I be able to work because I WANT to, vs. working because I HAVE to?

That drives most of my financial decisions for our household anymore. Trying our best to build a future where I can spend the majority of my time with the family & working on passion projects, without having to worry about $$$

CCP

Opinionated

0

VP, Business Development

Yeah I hear ya. My priority is providing for the fam. I'm looking to leave a legacy for my daughter. Lots of work ahead but I'm pumped for it!

TheRealTommyCallahan

Arsonist

1

President of Callahan Auto

When I first started selling I just blew my money. I was single and loved the extra income. Now that I've been selling for 7 years I have taken it more seriously and had an emergency fund. This helped tremendously when Covid 19 hit and commission checks dropped for a few months. Just make sure to have a safety net. Make budgets for things you want. Don't just blow that 15k commission check on a new car. I've seen too many people do that and then not make hardly any commissions months after.

tmon

Catalyst

1

Sales Manager

I did the same thing when I started in sales! Earned big & spent large.

Those emergency savings kept us afloat in 2020 as well when COVID hit. Glad to hear you were able to get ahead of it as well! Stick with it, you never know when the next black swan event is going to show up and shock our personal finances

TheRealTommyCallahan

Arsonist

1

President of Callahan Auto

It's hard not to spend big commission checks. Work hard, play hard. Need to make sure to balance it out.

Glad you had that safety net around as well! It definitely scared me at first but now I am all for creating that safety net.

Keep it up!

SDMHGWarrior

Tycoon

1

CEO

I think most sales people have ADHD so shiny new objects are exciting. I think Covid has opened up alot of people's eyes to the fact that shit can happen. We've seen the dot com bubble, the 2008 recession and now Covid. If you fail to plan you are planning to fail

tmon

Catalyst

0

Sales Manager

100%. We can't control these enormous events, but we can control how we manage our money before they happen. If you plan ahead, you can - at a minimum - ensure you have a safety net to get you through the hard times

No one really cares about your financial wellbeing other than yourself, so you have to take control of your money now while you can!

Finance

Member

1

sales

Way to be an awesome boss! So many high-earners end up getting themselves into trouble by the time they reach retirement or if a major emergency happens. Thanks for addressing this!

Being someone who is licensed to advise and coach people on their money, I can say there's no empirical evidence that shows budgeting works. . .

That said, to the effect of what you're saying and what I'm seeing in the comments, what does work is: setting up a system that's out-of-mind and out-of-side with systematized savings strategies for retirement, liquidity, and/or capital plays are ideal.

Technically is what I'm saying budgeting, eh, yeah, but managing a budget is what does not work in the long-run.

tmon

Catalyst

0

Sales Manager

For sure. The act of budgeting is tedious, but it isn't terribly hard. Sticking with it over the long-haul is what's so damned difficult (coming from personal experience). That's where systems & habits come in to save the day.

My hope is more people will take control over their money! It takes a lot of pressure off you as a sales rep for sure.

I've found that folks who manage their money processes well tend to crush it in sales. They never get the "commission breath" out of desperation for money. This is a huge advantage, and lets you play the long-game with your prospects

SiliconBBQ

Politicker

1

The Metal Rooster

I think understanding personal finance is critical to success and general wellbeing in life. Keeping up with the Joneses is an easy trap to fall into when you get big ole commission checks.

tmon

Catalyst

0

Sales Manager

It's so true. Helping people focus on themselves & their own path is critical, or else we start trying to match the online lives of those around us (& we all know how accurately those online personas match us in real life!) in our modern attempt to keep up with the Jones'

travelling_salesman

1

Sales Manager

Earn it to burn it was my attitude when I started in Sales. I don't regret it but I do wish I had someone who mentored me with budgeting/financial management earlier. I'm a 27 y/o if that helps you with demographic mapping

tmon

Catalyst

0

Sales Manager

Same! I think about how far I've come since managing my finances intentionally, and can't help but think about how much further I would have gone had I started a decade earlier.

Thanks for the demo info! It does help a lot, many of my reps are in their late 20's, so maybe the natural timing will help me build a sense of urgency

Rigeyyy

Opinionated

1

Account Executive

Yes.

AssistantToTheRegional

Politicker

1

Enterprise Account Executive

While this is a huge issue in sales, it's a larger issue brought on by the fact that most people due to the fact that the American education system poorly teaches budgeting / finances.

I agree once you have enough money you might need a coach but for the most part it's super basic stuff to get started.

Top 3 tips:

Pay off all debt in order of most interest

Build 6-12 month emergency fund (you'll sell better knowing you can afford to get fired aka sell because your solving problems not because you need commission)

Max out your 401k, your ESSP and Pay yourself before you pay others.

tmon

Catalyst

0

Sales Manager

It's true, we're dropping the ball in a huge way educationally regarding personal finances. You used to be able to "learn from your parents", but that only works if your parents know what they're talking about too! Mine didn't, and I know many others grew up in a similar household

Great tips, simple & incredibly effective!

elhandsomediablo

Good Citizen

1

Sales Development

I like to invest as much as possible from my bi-weekly paycheck. Commish? whats that.... haha. Only salary for this badboy. So I guess Dogecoin tooooooo da mooon.

tmon

Catalyst

1

Sales Manager

🚀🚀🚀

SheWOLF

Opinionated

1

TC Sales

It is especially important to coach the kids fresh out of college on budgeting. Gotta paint the big picture down the line for them as well.

BCD

Politicker

1

BDR

I think it's super important

PhlipOut

Politicker

1

Account Executive

Just wanted to say: great thread! too many people in Sales inflate their lifestyle at the same pace as their earnings

tmon

Catalyst

0

Sales Manager

Truth. Hard to get ahead if your spending grows with your income.

Its fine to spend commissions as you earn them, until it’s not 😂 budget today, build wealth tomorrow.

Thanks for hopping into the thread!

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