The butterfly effect: How small changes can transform a business

Remember that blockbuster hit from way back in ’04? The one where our friend Ashton Kutcher kept going back in time and making small changes that created a massive impact? 

Well, let’s take a moment to apply that concept to your real estate business. And you know what? Let’s take it a step further and see how it can revolutionize your personal finances, too.

Recently, I had the incredible opportunity to attend a content marketing event featuring the brilliant Jason Cassity, a real estate team leader in San Diego, California.

He shared some remarkable tactical tips on how real estate agents can harness the power of social media channels to level up their business success. 

It got me thinking about the astonishing potential of small actions and their ability to generate significant outcomes. Just imagine attending an event like this, implementing what you learn, and as a result, closing just one more deal in 2023. 

How small changes add up over time

Now, as a Certified Financial Planner specializing in assisting real estate agents in making smart money decisions, my mind naturally starts to wander. 

• What if that one extra closing had a ripple effect?
• What if you took the additional commission income from that extra closing and saved and invested it wisely? 
• What if you continued this pattern year after year until you retired? 

The outcome might astound you.

So, let’s crunch some numbers, shall we?

Suppose you’re currently 30 years old, your average sales price is $415,000, and you invest your 3 percent commission income from each transaction (after saving 25 percent for the IRS) into a common stock market index like the S&P 500. The assumed rate of return for the S&P 500 is 10.24 percent, which is the average return for the index from 1971 to 2022.

Now, let’s keep doing this every year until you reach the age of 65.

Guess what you’d have accumulated by retirement?

An astonishing $2,957,705.

Yes, you read that right. By taking small actions today and consistently making smart financial decisions, you could amass a significant amount of wealth over time. It’s the butterfly effect in action.

Now, I can already hear the skeptics questioning, “But is this really possible?” Well, I’ve got you covered. I’ve prepared a 90-second bonus video that will walk you through the math and demonstrate how these seemingly small changes can lead to such a substantial outcome. 

The key takeaway here is that small changes today can have an incredible impact in the long run. But it all starts with that crucial first step. Attending real estate events that enhance your marketing skills, just like the one I mentioned earlier, can serve as a catalyst for growth and success.

But don’t stop there!

Have you heard of Parkinson’s Law? 

It suggests that work expands to fill the time allotted for its completion. It’s an essential concept to grasp as you manage your time in your business. However, I want to apply Parkinson’s Law to your personal finances.

In other words, our personal spending tends to expand to match the income generated by our business. 

So how can you combat Parkinson’s Law?

It’s simple. Have a plan in place to put your hard-earned commission income to work even before you earn it. And once you have that plan, stick to it.

As your real estate business grows, it becomes vital to leverage that success into personal financial success.

So, go out there and learn from the best. Believe in yourself, create a plan, take action and I genuinely believe you can transform your real estate business and, in turn, achieve unparalleled personal financial success.