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