Money mastery is a skill set that all business owners can, and need to, learn to achieve long-term business success and longevity. According to CEO Chris Pollinger, it’s at the heart of creating a true legacy in real estate.

Are you receiving our weekly Teams Beat newsletter? For the latest news, insight and trends on teams, subscribe here.

Money mastery is one of the most important areas for long-term business success and longevity. I have seen those who don’t have a handle on their money management literally lose everything. 

This includes top brokers who once held coveted spots in the top 10 companies in the country. There are six pillars to money mastery that every business owner can and should learn.

1. Cash flow

Great businesses fail regularly due to poor cash-flow management. I’ve seen this be a problem regardless of the GCI a business is running. Those running $250,000 have the same problems in the same area as those who are doing $250,000,000. The only difference is how many zeroes there are in the equation.  

It’s always best to make decisions from a place of strength. Bad decisions are the norm when they are made in desperation. The first step in money mastery is to get your cash flow under control.

Here are a few practical tips while you build significant reserves:  

  • Pay your bills on their due date, not before.  
  • Disable all of your auto-payments and manually schedule when you want to pay each bill monthly.
  • Cut spending to what is necessary. If something doesn’t have a positive return on investment, then it’s on the chopping block.
  • Plan for the seasonality of income.  
  • When things get ugly, prioritize the things that reflect on your credit report and work with your other vendors to avoid service disruption.  

2. Debt management 

I know there is a school of thought that all debt is bad debt. Those who subscribe to this belief tend to lead safer, yet smaller, lives. Risk is a necessary component of reward. Those who build large businesses that tap into the legacy category carry a healthy level of good debt. Balancing risk is the key.

Debt on depreciating assets is generally a bad idea unless there is a 10x return on investment on the item. Your business computers, cars and wardrobe can fall into this category. If it doesn’t have a 10x return and it’s depreciating in nature, don’t do it on debt.

Debt on appreciating assets is a business decision. Buying real estate with a mortgage falls into this category. For your primary residence, it almost always makes sense. For investment properties, as long as they create cash flow, they also almost always make sense. Investments in your personal growth are also usually good decisions that have a positive return.  

3. Emergency funds

The economy is cyclical. The short-term debt cycle, or times between recessions, is typically seven or eight years. There are also long-term debt cycles and unexpected world events that will exacerbate harder times. Just remember, “This too shall pass.” That applies to good times and bad times. The world continues to spin. 

You need to be prepared for the unexpected. If you have nothing saved, start with getting a credit line opened. Then work on having three months of expenses saved, then six, then a year. These funds can and should be invested. But keep the funds in something liquid where you can access them in less than two weeks.

4. Proper protection

There is no need to over-insure everything in the beginning. Get the insurance you need, but work on your getting your cash flow and bad debt handled first. Then get your emergency funds up to the six-months mark. 

Once you get there, you can reevaluate your insurance needs and bump up your limits. When you have the cash reserves, you can raise the value of your policies, while keeping premiums in check by raising your deductibles.

5. Build wealth

As your business continues to generate profit, you are now in a position to expand your empire. Investment in your business or real estate, both directly or via stock, should be your primary wealth builders. Be smart, risk well, and keep speculative investing to a minimum. 

Consistent base hits are much better than the elusive homerun when building wealth. As your wealth builds, so will your access to better and better investments compounding your returns.

6. Preserve wealth

When you have seven figures coming in, it’s time to leave your neighborhood CPA and get a good tax strategist. There is a world of difference between a CPA who records what happened and one who helps you strategize the best way to make things happen. This is also the time when international diversification becomes an important play.

Legacy-level wealth opens doors not available to others. Money mastery starts with managing your cash flow. Getting a handle on debt and building your emergency funds comes next. Most people never get past the first three pillars. 

Protecting, building and preserving wealth follow. Money mastery is a skill set that all business owners can, and need to learn to achieve their long-term business goals.

Chris Pollinger, CEO of RE Luxe Leaders, is the profit whisperer to the leadership elite in the business of luxury real estate. He is a senior sales and operational executive skilled in strategic leadership, driving profit, business planning, sales, marketing, acquisitions, operations, recruiting and culture building.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription