Category Archives for "Myths that Keep you Broke"

Myths that Keep You Broke #30

Myth #30 - It’s Too Late:   

This is Myth #30 in the series and the last one. It is also the opposite of the attitude wealthy people have that it is never too late.

While on a brief vacation to Santa Barbara with my wife, we went to a thrift store, which we both enjoy. My large Hawaiian shirt collection has many from thrift stores. Anyway, while in this thrift store, I stumbled across an old book by David Bach, Start Late, Finish Rich.

In this book Mr. Bach says the same thing in about 330 pages; that it is never too late to start on the road to financial abundance.
My friend, Ralf, is one example of the concept; it is never too late. He was only divorced once when we first met around 1992, in a course, through Landmark Education. Later we both coached business owners through a course called the Entrepreneurial Edge.

Ralf sold his manufacturing business to a large national company in exchange for $1 million in stock, and the company later went bankrupt, and his stock was worthless. Ralf went through another marriage and divorced after about ten years. At age 65 his net worth was a negative $250,000. That is a quarter of a million dollars LESS than zero.

But Ralf has a great attitude and is a great business coach. He continued to work, and focused on rebuilding his net worth, which is now over one million dollars.

I’ve written about this often, I started over from broke at age 50, and within a few years was worth a few million dollars, and it continues to grow. This is how I can donate 100% of the profits from my book and online work to the charity Shelter To Soldier.

One of the people in my course is 66, and he is now learning for the first time how to get control over his money. My team continues to get emails from him on how fabulous this is, that for the first time in his life he is building a net worth.

Another course participant is 70, and after going through a bankruptcy he and his wife have been able to buy their own house.

Another participant is about 65. She had been funding her business from credit cards and is now able to generate a profit from her business instead.

The point is that myths, like, it’s too late, or you’re too old, or too young, or not smart enough, are just that: MYTHS. These myths are no more true than the moon is made of green cheese.

What myths have you been telling yourself?

To Your Prosperity,


Myths that Keep You Broke #29

Myth #29 - We Have Problems:    

Language is so important in how we speak and how we talk. I am talking about how we speak to ourselves, and how we talk to others. Do we have problems, or do we have challenges? Would you rather deal with a problem or a challenge? It is all about the language you use.

In the past, I had self-talk that was not supportive of my goals. You may have self-talk that is not supportive or empowering to your goals. You may have self-talk that dis-empowers you instead of inspires you.

Recently I heard someone speak out loud in their self-talk when they made a mistake saying, “I am so stupid. What’s wrong with me?”

Do you think that kind of self-talk will help them, hurt them, or keep them where they are?

You already know the answer: It will not empower them to do better. Wouldn’t it be better to say, “I made a mistake. What can I learn from that?”

I recall my wife looking at a color she wanted to paint a wall in the den and said, “That color is wrong.” A color can’t be either right or wrong. A color is just a color. You might not like the color, but that’s an opinion. It might not be the best color for the job depending on the emotion you want to evoke, but it can’t be right or wrong; it’s just a color.

As I was writing this myth my wife said, “I have to do marketing, and I hate to go marketing.” My reply was, “You don’t have to do marketing. You can order food online, we can order in meals, or we can just go out to eat.” Her self-talk limited choices and was not supportive to her frame of mind. My reply created choices.

Pay attention to your self-talk. Or ask someone to pay attention to your self-talk.

If it does not support you, what words or phrases can you say instead?

To Your Prosperity,


Myths that Keep You Broke #28

Myth #28 - You Have Plenty of Time II:   

Most young people think they have plenty of time before they have to think about setting aside money for retirement.

I don’t like to talk about retirement and in another email, I will talk about the difference between retirement and Complete Financial Choice™. For now, just understand there is a difference.

While a young person might think they have plenty of time, if they want to take advantage of the power of compound earnings, more time produces greater returns.

Someone who starts at age 25 only needs to invest $300 per month at 12% to create a $1.2 million portfolio by age 65. Someone who starts at age 45 has to invest about $2000 per month to produce a similar result.

You may have plenty of time, but would you rather invest $300 per month or $2000 per month?

I started over from broke at age 50, so I had to take risks and massive action. If you are young, or want to counsel someone who is young, then let them know just because they think they have plenty of time, they shouldn’t waste it. Instead, they should have it work to their advantage.

Who do you know with whom you should discuss this?

To Your Prosperity,


Myths that Keep You Broke #27

Myth #27 - Only You Can Do It Right:  

Many of us, and me included, often feel that if we want something done right we have to do it our self.

I see my wife struggling trying to create a resource list for her networking group for the first time using Microsoft Word that looks like an Excel spreadsheet. Things did not line up, extra unwanted spaces were created, people’s names flowed onto an extra page, and more.

But, she felt she had to do it herself. I suggested there are people in her office that already know the program. Just give it to them to complete the form. Her reply, “No, I know what I want and I have to do it.”

A word of advice, never coach your spouse. It just does not work if you want to maintain harmony in the home.

One of my favorite quotes is from J. Paul Getty. I have said it before, and it is worth being reminded of. He said he would rather have 1% of the efforts of others than 100% of his own efforts.

Not only is this contrary to the idea of doing it yourself, but the idea of doing it yourself suggests that you are the expert in all areas, from marketing, technology, to sales and support.

It was suggested that I update my website, and I came to the realization that was good advice. And this time rather than determining the home page, writing the text, and learning what would produce the best conversion, I took my own advice and allowed a team to support me.

The result: The new web pages and the text are even better than what I would have designed or written on my own. 

Where should you give up doing something yourself and give it to someone who can do it better, faster and maybe cheaper?

To Your Prosperity,


Myths that Keep You Broke #26

Myth #26 - Invest Instead of Save:    

Many people believe they need to start investing right away, and that putting money in a savings account, or a money market account, is a waste of time.

However, if you start investing before you start saving, what if you need money for something as simple as your car breaking down? Where will the repair money come from?

Here is the point: The car never breaks down at the right time, or the water heater never breaks down at the right time. And you have several ways to take care of unexpected expenses:

  • You can use a credit card. Bad – if you make payments instead of paying the balance in full each month.
  • You can just write a check from your checking account. Easy – if the balance is large enough.
  • You can take the money from a “Spending Account” as I suggest in my Wealth On Any Income book. Good idea and easy.
  • If you started an investment account, you can sell off some investments and pay for the expense that way. More complicated. If the market is up, fine, you just give up some of your gains. If the market is down, that would be bad timing. And you cannot plan for the market to be up at the same time as your car or water heater breaks down.

The point is: Life provides surprises. And to be ready you need to plan ahead. That is the purpose behind a “Spending Account”, which is nothing more than a savings account that you can get to whenever life sends you a surprise.

This “Spending Account” will also prevent you from adding to any credit card balances if you carry any from month to month. To create this account, just set aside 5% of your income until you have a balance that would be equal to a few months of your income. Then you can stop and add that 5% to your investment account.

To Your Prosperity,


Myths that Keep You Broke #25

Myth #25 - I Have to Work Hard for Money:       

The myth for today that you have to work hard for money is closely associated with Myth 24that hard work is supposed to pay more. And I explained value pays more than hard work.

In this email, think of the quote from J. Paul Getty, who was one of the world’s richest men. In his book, he said he would rather have 1% of the effort from 100 men, than 100% of his own efforts.

You can extrapolate this out to having 1% of the efforts of 1000 people being ten times what you would earn from 100% of your own efforts.

It dawned on me that is what I created by accident with our apartment buildings. I have about 25 families that go out to work every day. Once per month they share about 25% of their income with me (in the form of rent), and I don’t even have to supervise them.

When I multiplied those two figures, I realized I am earning 625% of what might have been my own income. Yes, I have to pay loans and other expenses, but it still leaves plenty left over.

If you are in a service business, you could receive 100% of your efforts. However, if you marketed your services effectively you could create more clients than you could handle on your own. You could pay others to take care of those clients, and take a percentage for the referrals. Just 25% of the fee from four other people doubles your income.

This is what some coaches do: They market effectively; they create many clients; then refer the clients to a coach on their staff, and they get an override on each client. And if you are in any type of service business, you can be doing the same thing, from accounting, bookkeeping, computer repair, to software sales.

What can you do to bring in more clients than you could handle on your own?

To Your Prosperity,


Myths that Keep You Broke #24

Myth #24 - Hard Work Pays More:                       

Too often I hear someone tell me how hard they work, and it is not producing more income.

What they fail to recognize is that working hard is not the same as producing more value. And the value is in the eye of the customer or client.

My wife sees a woman who does acupuncture and charges $125 per session. My wife feels so much relief and appreciation that she pays $150 instead. The value to my wife is greater than the fee that was requested.

Many years ago I arranged a construction loan for a client after his original bank collapsed. His project was only 50% completed and no new commercial lender would offer the financing to complete his project. The private lender I found charged 10% interest and my client was thrilled.

For my work I was going to charge my client a $750 fee. He asked what would be a fair fee, and instead I asked, “What is it worth to you to finish the construction?”

He offered $1500, and I was silent. (He was offering twice the amount I would have asked for.) He interpreted my silence as my being insulted and asked, “Oh my, did I offend you? Should it be more?”

I said, “No, that’s just fine. After all, you are a great client.”

He paid twice what I would have asked for because he saw more value than I did.

From these two examples I hope you can see, hard work has little to do with the amount of money you earn. It has more to do with the value provided. And you may not be a good judge of the value.

Are you willing to ask your clients about the value you provide?

Try it. You just might be surprised in positive ways. And you could end up with more testimonials if you ask.

To Your Prosperity,


Myths that Keep You Broke #23

Myth #23 - Wealth Is Not Fair:

You may remember the protests in the streets about how unfair it was to have so much money in the hands of 1% of the population. The protesters were in the 99% of the population.

You may have heard it said, that if all the money in the world were divided equally among everyone, it would not take long for the wealth to be redistributed just the way it was before. And I believe this.

Most people have been taught nothing about money, and most people lack the attitudes to create wealth.

This is why I devote my time to writing and speaking about how to handle money effectively and adopt the attitudes of the wealthy. I can donate 100% of the profits from my books, speaking, and programs to charity because I have adopted those attitudes.

You can become wealthy, just as I became wealthy if you adopt the same attitudes, learn about money, and invest money.

You and I have been programmed from an early age to believe, that only the poor people are the kind and noble. Hollywood movies, TV shows, fairy tales, and even the scripture promotes the idea that only the poor are good and noble and the wealthy are greedy and heartless.

Consider Titanic with Leonardo Dicaprio vs. Billy Zane; Game of Thrones with the Starks vs. the Lannisters; or Dirty Dancing with Patrick Swayze vs. the parents. There are so many more when you just look for it with new eyes.

The fairy tale Jack and the Beanstalk or Aladdin or anything by Charles Dickens sends the same message; that the poor are better people than the wealthy. The scripture about Moses and the Pharaoh reinforces this same message.

In addition to your parents, look at what you have seen and read with new eyes and recognize how you have been influenced about money and wealth.

Is it fair that the wealthy have different attitudes about money than you? Not when you can adopt those same attitudes.

Where do you see you’ve been influenced about money and wealth?

To Your Prosperity,


Myths that Keep You Broke #22

Myth #22 - I Can’t Be A Philanthropist:   

In Myth #19I said many people live with either/or thinking. This idea really goes hand-in-hand with your thinking about what you can, and cannot do in the area of philanthropy.

In Myth #20I addressed the idea that you might feel like you cannot afford to donate to a charity or charities that might touch your heart. This comes from a scarcity mindset.

In an earlier email, I spoke about being selected to do a TEDx talk, and it is based on philanthropy. To practice, I have been delivering it to various service clubs in the Los Angeles area, like Rotary and Kiwanis. This has been very helpful in supporting me to memorize my 12-minute talk.

In constructing the talk, my daughter reminded me how I have been philanthropic in my actions before I had the money to be philanthropic with dollars. When I was a young parent, struggling to meet our bills, I would take my children to homeless shelters to donate blankets, clothing, or help serve food. She reminded me, how I would go around the neighborhood and pick up trash, paint out graffiti, plus foster and provide basic training to dogs that became service dogs for the blind.

Children are a great reminder of who you were when you were younger, whether good or bad! The point is, that before I had the money to donate large amounts to charity and call myself a philanthropist, I was getting involved with my time, when I barely had any money at all.

I’ve mentioned it often, at one time in my life, I had to collect soda bottles and cans to get the refund money to buy food for my family. I still pick up cans and bottles (plus collect them from our apartment buildings), but give them to our housekeeper as extra money. It’s surprising how this money can add up.

Wherever you are financially, you have the ability to be philanthropic. If not donating dollars, you can donate time and attention to those less fortunate.

Who are the people that touch your heart? Or what animals or causes are important to you? How can you contribute to their mission, besides money?

Then just do it.

To Your Prosperity,


Myths that Keep You Broke #21

Myth #21: Plan for Saturday Night

There is a quote that is attributed to Gloria Steinem, that goes something like this:

“The wealthy plan for generations, and the poor plan for Saturday night.” *

Unfortunately, this myth appears to be real, and not a myth. It does appear that the poor, or those with a scarcity mindset, make very short-range plans.

When I was in my 30s, I was a partner of a pension administration company that created tax qualified retirement plans for closely held businesses. There might be one or two owners, and 10, 20 or 100 or so employees.

I would hold meetings to talk about the options available to employees if the company was going to close out their tax qualified retirement plan and distribute the assets. Unfortunately the owners would transfer their money to another tax deferred retirement vehicle, like an IRA, while the employees wanted their money as soon as they could get it.

Even though this money would be taxed as income, AND include an additional 10% penalty for withdrawing the money early, they still wanted it now. They wanted to buy a new TV set, or pay off credit cards, or make a down payment on a newer car.

It was so sad for me to see 95% of the employees blowing the money that was meant for their retirement. And it was then that I realized, I was seeing the picture of how most people handle money in this country, and probably the world. They are slaves to money, and not the master of it. Instant gratification was how the majority handled money.

However, you don’t have to personally participate in this myth. You have the ability to wake up and look to your future and determine what actions will allow you to have a choice of working or not working when you are in your 50s, 60s, 70s, 80s or later.

What actions will you take to secure your financial future?

To Your Prosperity,


* The actual quote I found is this:

“Planning ahead is a measure of class. The rich and even the middle class plan for future generations, but the poor can plan ahead only a few weeks or days.”

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