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Wealthy Mindset Series: Wealthy Attitude List

Wealthy Attitude List   

As you know, one of the most important keys to creating wealth is the right attitude. And to that end I created a series of articles listing the attitudes that wealthy people operate by, that the bulk of the population does not.

These attitudes are the difference between you leading a life of poverty, struggle or mediocrity versus leading a life of financial and emotional prosperity and your ability to donate to charity in significant ways.

In this article you will see all the attitudes that I wrote about; most of which I operate by. I guess if I were able to operate by all of them, I would be a billionaire instead of a millionaire. You get to choose.

And while all of them can be accessed here on my blog you will find this list to be helpful in finding an attitude that you might want to refer back to. The first two articles each had two attitudes. Then I realized that I should just do one attitude per article. So you will see there are more than 30 attitudes, but only 30 articles.

Here goes:

Article #1:

  1. The wealthy are willing to ask for help and/or hire help.
  2. The wealthy put a value on their time and know they cannot buy more of that.

Article #2:

  1. The importance of who you hang around with.
  2. Money terms like interest versus earnings and the cost of money.

The remaining articles only have one attitude each:

  1. Ask questions instead of making statements when they hear familiar information.
  2. Big Picture versus details
  3. Use a team
  4. Operate based on your values
  5. Net worth versus Pay Check
  6. Voracious readers
  7. Penny wise versus Dollar Foolish
  8. It’s okay to talk about money
  9. Treat yourself like you matter
  10. Net Worth versus Pay Down Debt
  11. Good Debt versus Bad Debt
  12. Share your knowledge
  13. Investable Assets versus Personal Use Assets
  14. The importance of language
  15. Avoid either/or thinking
  16. Planning for generations
  17. Giving back to the community
  18. Philanthropy and networking
  19. Zero-sum game
  20. Focus on value, not effort
  21. Have money work, not you work
  22. Time versus Priorities
  23. Control versus Hope
  24. Opportunities versus Obstacles
  25. Delegate or outsource
  26. The power of a decision
  27. How the wealthy recharge
  28. It’s never too late

And while all of these attitudes are important, here are the top attitudes you can focus on that that can create your wealth (in no particular priority order):

  1. Operate by your values and treating yourself like you matter
  2. Look at the big picture first and the details second
  3. Ask yourself questions instead of making statements when you hear familiar information
  4. Build your net worth versus paying down consumer debt
  5. Use a team; delegate and get expert input

To Your Prosperity,

Rennie

 

 

Wealthy Mindset Series #30

It’s Never Too Late   

As you know, one of the most important keys to creating wealth is the right attitude. In Series #29 we spoke about how and why the wealthy recharge.

In the series today we will talk about how it is never too late to create financial abundance.

While I planned that my last article of the series would be how the wealthy recharge, after a conversation with a dear friend (and my accountability partner for over 25 years), I decided to add this very important concept to the series; it is never too late.

While the book by David Bach, Start Late, Finish Rich, says the same thing in about 330 pages, my friend Ralf is the ideal 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 near one million dollars. The following is his philosophy:

  • The Secret of Life: There is only time. You are born, you have time, and then you die. What you have is based on where you spent your time.
  • Your "wants" are where you have not spent your time. To obtain your "wants" you must spend your time, or someone else must spend their time for you.
  • The Purpose of Life: Do work you love; to earn money to have a comfortable lifestyle; and to have free time to spend with those you love, doing what you love.

In a previous article I spoke about how Melissa had a plan at age 13 to become a doctor. Ralf started over from broke at 65. I started over from broke at age 50.

It is never too late to create financial abundance if you focus your energies and have a plan.

In the next, and last, article of the series we will list all the attitudes of the wealthy we have covered over the past 30 weeks.

To Your Prosperity,

Rennie

 

Wealthy Mindset Series #29

How the Wealthy Recharge   

As you know, one of the most important keys to creating wealth is the right attitude. In Series #28 we spoke about how the wealthy understand the power of a decision.

In the series today we will talk about how the wealthy recharge. This is good timing from the standpoint that it is the end of the year, and the near end of this series of the attitudes of the wealthy.

First, I hope you are having a wonderful holiday season, regardless of how you might celebrate. And I wish you a prosperous New Year. 2019 can be your most prosperous year if you adopt just a few of the 29 wealthy attitudes that I wrote about this last half of 2018.

I have said it before, and I will say it again; it was adopting the attitudes of the wealthy that took me from flat broke at age 50 to a net worth that puts us (my wife and I) in the top 1% of Americans. We are blessed to donate large amounts to charity because we do not have to work for money; we have our money working for us.

What I will tell you here is NOT to impress you, but to impress upon you how YOUR life can change. Many years ago I had to collect soda bottles and cans to get the refund money to buy food for my family. In 2018, my wife and I were able to donate over $100,000 to charity. That is more money than I used to earn, and now we can donate that to charity.

Many years ago I remember an executive business coach, Dan Sullivan, who said that if you have one vacation per year, you can expect to have one breakthrough in your business. If you take two vacations, you can have two breakthroughs. And if you have three vacations… you get the picture.

He went on to explain this is not limited to a vacation. Other possibilities could be a weekend trip to a resort or spa, or a seminar or workshop, or reading a book each week. The point was to get away from working IN your business and allow your mind the freedom and opportunity to work ON your business.

Thomas Edison had a room where he could go and sit and meditate. Other answers or solutions to business issues can come when you sleep. You can even program yourself to solve problems by implanting the desire for a solution before you doze off at night. I read a book on how to do this. The point is that to grow your business you need to take the time to recharge.

There is an old story, or fable, about two lumberjacks; a young one and a seasoned veteran. On the first day in the woods to cut down trees the young lumberjack started swinging his axe and kept at it hour after hour.

The seasoned lumberjack would pause every hour and sit down for about 10 minutes. After a couple of hours, the young one said to the older one that he was old and lazy because he had to rest every hour.

The older one explained that he took the time out to sharpen his axe and at the end of the day he will have cut down more trees. He told the young one that a dull axe is just not as effective.

Of course you know what happened at the end of the day; the veteran lumberjack cut down more trees. We all do better when we take out the time to recharge, reflect and/or sharpen our axe (or our mind).

What are some of the ways you can, or you do, recharge?

For the next year see how your life can transform; work on adopting or practicing one new attitude per day, or per week, or per month.

In the next, and last, article (#30) of the series we will discuss how it is never too late to start on the journey to financial abundance.

To Your Prosperity,

Rennie

 

 

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Wealthy Mindset Series #28

The Power of a Decision   

As you know, one of the most important keys to creating wealth is the right attitude. In Series #27 we spoke about how the wealthy delegate and outsource certain functions of their life and/or work.

In the series today we will talk about how the wealthy understand the power of a decision.

This is good timing from the standpoint that it is the near end of the year, and we are near the end of this series of the attitudes of the wealthy.

Recently I had the pleasure to tour the southern part of the United States with my wife. While in Nashville, TN, we met with my wife’s nephew, Jeremy, and his wife, Melissa. Both of them are doctors, but they came from far different backgrounds. This email is about a decision that Melissa made when she was a teenager.

Melissa was raised in Kentucky and her family was poor. When I mean poor, I mean dirt poor. She had two siblings, multiple step-siblings, and only one nice dress that she could wear to church each week. All the other children could see it was the same dress each week. And as kids do, they made fun of how poor this family was. I am sure you can imagine the hurt.

They lived in the countryside and too far away from the city to have city services like trash pick-up. So they had two choices, pay a small fee to dump trash in the landfill or burn it. She refers to her step-dad as the “trash burning red neck.” He would wait until the school bus dropped Melissa off at home in the afternoon to burn the trash. This way all the other kids could see how poor they were.

This was her mom’s third husband and not exactly a nice man. Besides the embarrassing trash burning, in one instance Melissa found this beautiful multi-colored lizard. When she showed it to her step-dad, he crushed it with his foot.

At age two and a half she and one sister were sent to live with her grandparents. For a couple of years, until age five, Melissa was influenced by a family that could show a better future. When she was sent back to her mom she became consciously aware of her poverty and did not want that for her life.

Melissa noticed that when her mom graduated as a nurse, the rich people were doctors. It was then, at age 13, that Melissa decided to become a doctor and was encouraged by her mom. As you might expect, this decision was not encouraged by other members of her red-neck family. The rest of her own family made fun of her, because she had goals. They told her she would end up just like the rest of the family; poor and pregnant.

Instead, Melissa made a plan to reach her goals. At age 14 she started to work at Taco Bell. Before she turned 16 she was the manager. She purchased her own car and two years later moved into her own apartment. She applied to college and worked to support herself. She took one year off to work as an emergency room technician, to save more money for medical school.

In the required essay when she applied to medical school, she wrote about why she should be admitted and included information on her past and the decision she made at age 13. She was accepted, and graduated as a doctor with a specialty in obstetrics and gynecology (OB-GYN).

Melissa met her husband when they were both medical students. They now have two children, a lovely home in Nashville, and two excellent incomes.

The wealthy understand there is power in a decision. Melissa made a decision at age 13, to become a doctor. I made a decision when I was broke at age 50. With only 15 years left before most people retire, I had to get busy and create a secure future. For me, the plan was, to invest in multi-unit rental properties, and get the bulk of the funding from other people.

You can make a powerful decision at any point in your life and alter your future. Any struggle you have comes from not making a decision. What decision have you avoided that you are willing to make now?

In the next article of the wealthy mindset series you will understand how and why the wealthy recharge.

To Your Prosperity,

Rennie

Wealthy Mindset Series #27

Delegate or Outsource   

As you know, one of the most important keys to creating wealth is the right attitude. In Series #26 we spoke about how the wealthy look at the opportunities versus obstacles to creating wealth.

In the series today we will talk about how the wealthy delegate and outsource certain functions of their life and/or work.

In an earlier email of the series I said that the wealthy do not have a lack of time because they set priorities. And I mentioned when they have several things that need to be done in a limited amount of time, they will delegate certain tasks to an assistant, or hire someone who may be more skilled at the task. The wealthy pick the task with the highest return on their time.

Here is the paragraph from Series #24 (Time versus Priorities):
And, I think I discussed in the wealthy attitude series of emails that someone else can go to the post office and bank for you. Who says you are the one who has to go?

You may have thought, “He didn’t write about the attitude of delegation.” Well, it looks like you are right; I didn’t write about that until today. So, here is that conversation and why someone else should do some of the things that you might be doing.

You might be able to learn how to use Infusionsoft or 1ShoppingCart, or Lead Pages, or any one of the myriad of programs that can support an online business. You could learn graphic design for Power Point, or typeset a book. But where is your highest and most profitable use of your time?

If you coach a client and earn $100 per hour, or you manage real estate and that earns you $200 per hour, or you practice law and bill out at $400 per hour, should you transcribe your own notes? Would you pay someone $100 per hour to transcribe your notes? That would be a tremendous waste of money when you can hire a quality transcription service for $35 per hour.

Would you pay someone $100-400 per hour to take packages to the post office or operate Infusionsoft, when you can pay someone $25-35 per hour to do that for you?

If you are doing those tasks, then you are using your time ineffectively. It makes more sense for you to make a sales call, book a coaching client, or install orthodontia than to spend that same amount of time going to the post office. You can even outsource your marketing by hiring virtual assistants for as little as $5-10 per hour to do that for you.

This is how the wealthy think. This is the attitude that they operate by to increase their wealth. They do what they do best. They use their time to work on the tasks that make the most money, or the tasks that an assistant cannot do.

Now, if you are looking to scale your business, you need to train others to do the functions that you will no longer do. Or you can hire someone more competent than you, to do the training. These new employees could handle your accounting, sales calls, coaching calls, computer repair, email creation, book appointments, or set up radio interviews.

It is your business. You get to choose what you will do and what you can delegate or outsource. What are the first three tasks you would delegate to someone else? (And it can even be, who would clean your house or cook your food.)

In the next article of the series (#28) we will talk about the power of a decision. You will see how a poor child in rural Kentucky became a doctor, based on a decision she made at age 13.

To your prosperity,

Rennie

 

 

Wealthy Mindset Series #26

Opportunities versus Obstacles   

As you know, one of the most important keys to creating wealth is the right attitude. In Series #25 we spoke about how the wealthy control their money instead of hoping someone else will help them make it grow; control versus hope.

In this series today we will talk about how the wealthy focus on opportunities versus obstacles.

What I am realizing as I write this series of attitudes of the wealthy, and I reflect on my own journey from broke to wealthy, many of these attitudes I adopted are intertwined.

In the first email of the series I spoke about how the wealthy are willing to ask for help, and they turn to experts for guidance. They do not expect to know everything themselves. And this ties into the topic of the previous attitude about control versus hope.

Another example is looking at the Big Picture first and the Details second (Series # 4). I can see how I focused on the opportunity from buying multi-unit real estate instead of the obstacles of not having enough money, which is the topic for today.

At the same time, I realized, I have some control issues, and that plays into both where I invest, and how willing I am to delegate certain tasks to others. Hopefully you can see, how there are both complements and contradictions to some attitudes. Nothing is all black and white; everything has shades of gray. (But not 50 shades!)

Living in Los Angeles I could see we had a growing rental market. Regardless of the regulations or obstacles to starting a business here, people want to live here. Yes, it is tough if you are poor. Yes, there can be overwhelming regulations to operate multi-unit rental housing, but the benefits and opportunities outweigh the obstacles.

The opportunity of investing in rental real estate was to see properties increase in value and for rental income to increase. The obstacle was that I had no money to invest after two divorces and a business failure. The opportunity was to pay myself first (Series #11) and not attempt to do everything myself (Series #1).

In the next email of the series we will talk about how the wealthy delegate and outsource certain functions.

To your prosperity,

Rennie

 

 

Wealthy Mindset Series #25

Control versus Hope   

As you know, one of the most important keys to creating wealth is the right attitude. In Series #24 we spoke about how the wealthy do not have a lack of time, instead they set priorities.

In this series today we will talk about how the wealthy control their money versus hoping someone else can make it grow.

One of the wealthy people I know talks about the “park and pray” method of investing. She says that many people, maybe even you, hand their money over to a stock broker and hope they can make it grow.

One of my favorite investors is Warren Buffet, and he commented that it was odd how the guy who drives up in a Rolls Royce hands his investment money to a stock broker who had to take the subway to work.

Early on in my life, I recognized, I had some control issues, and I also see how that has served me well. As an example, if I were to purchase some stock, let’s say with General Motors, they will not pay any attention to my suggestion on where to have a production facility, how to design a car, what features I think would be good, how to market it, what commercial to air or even who to hire.

However, when it comes to investing in multi-unit residential properties, I can pick where I buy. I can select how I want to improve the property, paint the exterior or interior, or re-model (as long as my wife agrees). I can choose the tenants. I can choose to keep the building or sell the building. I can choose to defer the taxes under IRS Section 1031, or pay the taxes on the gain, on and on and on. I am the one in control; not a stock broker or the board of directors of some public company.

If you have your own business, you are in control. You choose how you want market your product or services. You choose your pricing. You choose how it will be manufactured or delivered. You choose the hours you will work. You choose the technology you will use. You choose whether you want to rely on cold leads or referrals. You choose your employees and how you will train them, on and on and on.

When you look at the wealthiest people, like Warren Buffet, Bill Gates, Michael Bloomberg, Sam Walton, or many others, you will see how they were in control of their companies and their fortunes.

What is the area where you can be in control of your business and/or your money?

In the next email of the series we will talk about how the wealthy focus on opportunities versus obstacles.

To your prosperity,

Rennie

 

Wealthy Mindset Series #24

Time versus Priorities

As you know, one of the most important keys to creating wealth is the right attitude. In Series #23  we spoke about how the wealthy focus on how to have their money work for them instead of them working for money.

In this series today we will talk about how the wealthy understand there no such thing as a lack of time; only a lack of priorities.

You have probably heard of the Pareto Principal, more commonly known as the 80/20 rule. This is where you can see that 20% of your efforts or customers can produce 80% of your results.

By the same token, 20% of your customers or clients can produce 80% of your headaches. They are NOT the same 20% that produce 80% of your results, but that’s a conversation for another day.

Let’s say you have one hour and four tasks to handle or complete:

  1. Take the mail to the post office (30 minutes)
  2. Drop checks off at the bank (30 minutes)
  3. Call your best client for a referral (5-15 minutes)
  4. Work on a marketing brochure (1-2 hours)

First, you will notice that working on the marketing brochure can take up the full hour or more. Going to the post office and the bank will also take a full hour. But calling your best client will probably not even take 25% of the hour.

This is where you measure priorities against time and look at the 80/20 rule. What has the highest likelihood of growing your business NOW? It is not the marketing brochure or the other two tasks. It is calling your best client for a referral. That is the highest priority, so if you only have one hour, that is the action to take first.

And, I think I discussed in the wealthy attitude series of emails that someone else can go to the post office and bank for you. Who says you are the one who has to go?

And for the marketing brochure, should you work on this alone, or with an expert? Someone else who has expertise in marketing can get it done in probably less than one hour and do a better job. And if you focus on getting more clients and customers, you will have the money to pay your assistant and the marketing expert.

Hopefully, you can see how no one has a lack of time, only a lack of priorities. Whether is it you, me, or the leader of a country we all have the same 24 hours in a day to achieve our goals.

Can you see how by using the 80/20 rule and setting priorities, the results you produce can shift dramatically within any time constraint?

In the next email of the series we will talk about how the wealthy control their money versus hoping someone else can make it grow.

To your prosperity,

Rennie

 

Wealthy Mindset Series #23

Have money work, not you work

As you know, one of the most important keys to creating wealth is the right attitude. In Series #22 we spoke about how the wealthy focus on output or value versus input or effort.

In this series today we will talk about how the wealthy focus on how to have their money work for them instead of them working for money.

When I was in my 30’s I had to work for money, and it did not seem like there was enough to set aside and save or invest after making a house payment, paying bills and raising a family. For about a year I paid myself first $300 per month from my $3000 per month income, and after 10 months saved $3000.

Then I completed my tax return and owed $3000 to the IRS. That was so discouraging that I stopped paying myself first for another eight years until I re-read The Richest Man in Babylon. Paying myself first was really the key to creating wealth.

Now my money works for me, instead of me working for money. Here is how you can have money working for you instead of you working for money:

Example #1: In 2001, I purchased a tri-plex with my wife and her real estate partner. My $18,000 down payment grew to $130,000 in six years while the tenants paid down the mortgage and the other expenses with their rent payments. This was money working for me at about 40% compounded annually.

Example #2: Several years ago we re-financed our house at 3% and invested the money with a private lender and earned 7%. That allows us to make our loan payments and provides a profit of $670 per month. Our money is working for us.

Example #3: Recently I met a couple of young ladies creating a short term rental business. They were profitable and wanted to grow. Loaning them money at 8% interest is helping them grow, and has money working for me.

There are many businesses that are profitable and can grow faster with more money. Until you pay yourself first, or create an account for saving and investing, you will not be able to take advantage of those opportunities and have your money work for you.

What opportunities have your seen, or currently see, where your money can work for you, instead you just working for money?

In the next article of the series we will talk about how there no such thing as a lack of time; only a lack of priorities.

To your prosperity,

Rennie

 

 

Wealthy Mindset Series #22

Focus on value, not effort

As you know, one of the most important keys to creating wealth is the right attitude. In Series #21 we spoke about how the wealthy recognize that wealth creation is NOT a zero-sum game, and that the amount of wealth is not a fixed size, but it can expand. Your increase in wealth does not come at my expense.

In this series today we will talk about how the wealthy focus on output or value versus input or effort.

Many people have jobs that pay them on an hourly basis. Regardless of the amount of work they complete they will receive an income based on their input of time, not value. They might have expended a lot of effort during that time and produced great results, but that will not change their hourly pay.

The wealthy mindset focuses on the output, or value or result produced instead. As an example, if you make a suggestion to a client that results in an increase in their productivity you could set up a compensation agreement that says you get 10% or 20% of the additional revenue produced from that increase in productivity.

I have a portfolio manager who only gets paid when he exceeds the “high water mark” value of my portfolio each month. If my portfolio is worth $1,000,000 at the end of October, and worth $950,000 at the end of November, he is paid nothing. If my portfolio is worth $1,050,000 at the end of November, he gets paid 20% of the gains. He is paid based on value or results produced.

It does not matter how much time he put in, or the effort he expended: He will only get paid based on the results he produces. This has worked out well for us and for him as well.

J Paul Getty said in his book “How to Be Rich” that he would prefer to have 1% of the efforts of 100 people than 100% of his own efforts. (You can tell what my reading list is like.)

In the next article of the series we will talk about how the wealthy learn how to make money do the work instead of them doing the work.

To your prosperity,

Rennie

 

 

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