The Ultimate Expense-Categorization Hack

Slice your overhead costs without the headache.

Author

Steve Stowe
January 27, 2025 • Estimated Reading Time: 8 minutes

Hey there, Real Estate Rockstar! Steve here with another edition of CLOSING THE GAP: Financial and Business Insights for Your Real Estate Business and Beyond. 

This week, we’re diving deep into expense categorization—because let’s face it, those receipts can pile up faster than an open house sign-in sheet. We’ll also explore client follow-up systems that strike the perfect balance between automation and a personal touch, plus how to protect your time (and sanity) during peak season. Lastly, we’ll keep the Atomic Habits momentum rolling—because once January ends, it’s easy to let those shiny new habits slip.

Ready? Let’s save some money, strengthen your client relationships, and keep stress at bay!

— Steve

ACCOUNTANT ANGLE

Expense Categorization 101

Let’s talk about the unsung hero of your financial success: expense categorization.

It may not sound glamorous, but accurately grouping your expenses is like labeling all the shelves in your pantry—everything becomes easy to find, manage, and ultimately optimize.

Start by creating broad categories that align with your real estate business, like “Marketing,” “Professional Fees,” “Transportation,” and “Office Supplies.” Then, break those categories down into sub-categories if necessary—just be careful not to overcomplicate the system.

Many bookkeeping tools (like QuickBooks or Xero) let you customize these labels, which helps you see exactly where the money’s flowing.

The result? Fewer “Where did all my cash go?” moments, and a clearer path to making smart financial decisions—without all the guesswork.

BUSINESS BOOSTER

Effective Client Follow-Up Systems

Got leads slipping through the cracks? A solid follow-up system is your best friend.

Start with an automated sequence—a simple email or text that goes out a few days after meeting someone. CRMs like HubSpot or Follow Up Boss can handle this for you.

But don’t stop there: layer on personal touches just like we talked about 2 weeks ago. After the initial automated message, send a quick video or voice note. Let them know you’re thinking about their specific situation—maybe they mentioned a new job or a growing family. Tailoring your outreach shows you’re more than just a script, and automation ensures nobody falls off your radar.

The sweet spot is mixing efficiency with authenticity. Because guess what? If you’re always top-of-mind (in a friendly, not spammy way), you’re the first call they’ll make when it’s time to buy or sell.

COACHES CORNER

Work-Life Balance—Setting Real Boundaries

“Balance” can feel like a myth when you’re juggling multiple showings, late-night paperwork, and back-to-back client calls. Here’s the reality: setting boundaries is a choice, not a luxury.

First, mark personal time on your calendar just like a listing appointment. It might be a Saturday golf session or Wednesday family dinner—treat it as non-negotiable.

Second, communicate your “off hours” to clients upfront. Yes, real estate can be a 24/7 gig, but letting people know you respond until 7 p.m. sets a healthy expectation.

Finally, learn to say no (politely) when requests clash with your schedule. It’s amazing how much brain space you reclaim when you’re not constantly on call.

Remember: the better you’re able to recharge, the better you’ll serve your clients—and that’s a win-win in anyone’s book.

BOOK OF THE MONTH

“Atomic Habits” by James Clear

By now, those January resolutions might be starting to fade—or you’re tempted to let them slip.

Cue our last visit to Atomic Habits by James Clear. The magic here is consistency. Most folks nail their habits for a couple of weeks, then life happens. Clear suggests anchoring a habit to an existing routine. For example, if you decided to review your budget every evening, tie it to something you already do nightly—like brushing your teeth or making tea.

Another pro tip: track your habits visually. A simple checklist or habit-tracking app turns staying consistent into a tiny game you “win” every day. And hey, if you slip up, don’t beat yourself up—just jump right back in. As Clear says, it’s the repeated small efforts that ultimately lead to massive, game-changing results.

Go ahead and click the image to order the book from Amazon.

NEWS YOU CAN USE

TO-DO LIST

Your Next Move — Turn Insights into Action

✅ Categorize Your Expenses. Create or refine your expense categories in your bookkeeping software.

✅ Automate + Personalize. Set up an automated follow-up sequence, then add a personal note or video.

✅ Mark Personal Time. Block out at least one time slot this week for non-work activities—treat it like a priority appointment.

✅ Revisit Those Habits. Track your key daily habits (financial check, lead follow-ups, etc.) so you don’t lose momentum.

That’s it for this week, folks. Let’s keep closing those gaps—one smart step at a time!

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