Episode 36: Rennie’s Story– Transcript

Hi Folks, Welcome to the Wealth On Any Income podcast. This is where we talk about money tips, techniques, attitudes, information and provide inspiration. I’m your host, Rennie Gabriel.

In the previous episodes I spoke about your five year financial goal; the difference between good debt and bad debt; how good debt can support you to create wealth. We discussed how to complete a Balance Sheet and determine your net worth so you know how close you are to Complete Financial Choice®. For the Income and Expense form, when you focus on expenses first you’re rewarded with more income. We discussed how to measure the level of pleasure based on where you spend your money.

In the last episode we covered the story of Jack and Jill and way it is not good to pay off debts before saving and investing. You heard about how to avoid investment frauds and fraudulent charities. And I completed reading the Wealth On Any Income book with the conclusion.  

Today, you will hear the details of how I went broke by age 50 and what I did to create Complete Financial Choice®. When I started the previous 35 Episodes of the Wealth On Any Income podcast audio book it probably appeared like I was bragging. You need to know that I struggled with money most of my life, and finally turned things around big time. This episode will short at less than 10 minutes.

I could stumble over some words. I am not a professional voice over actor so please forgive me if that happens.

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I said I was broke first in 1982. And following two divorces I was broke for the third time at age 50. Here are the details of where I started on the road to financial independence. The point is that if a guy like me, who fails high school math, can create Complete Financial Choice®, so can you.

In 1981, my mom died. It was the day after I turned 33. My dad had died when I was 11, so now both my parents were gone. Besides a half-sister on my father’s side who lived about 1,000 miles away, all that remained as my closest blood relative was my mom’s first son (my half-brother), Larry. I inherited $17,500 and half interest in a four-unit apartment building with Larry. It had profit of about $650 per month. I didn’t feel very good about my ability to manage personal finances, so Larry held on to my $325 per month until I needed it.

At the time I was in the pension administration business. I sold and consulted with small corporations all over southern California on qualified retirement plans. This is when I started doing continuing education programs for CPAs and attorneys. I also had some art galleries in California and Arizona. For the four years I had them up to that point, they had doubled in business each year.

When my mom died, I realized I didn’t want to be in the pension business and decided to leave effective January 1, 1982. With the $17,500 inheritance and an already existing business, I decided to go into art galleries full time. Well, in 1982 the economy was pretty bad, much like 2009. Businesses were more concerned about paying their phone bills than decorating their offices with art.

By September 1982 I was broke. The $17,500 was long gone. I was another $28,000 in debt on credit cards and business loans. I was three months behind on my mortgage payment and the bank was about to foreclose on my home. I was about to go down the tubes financially. I collected soda pop bottles and cans to get the refund money to buy food for my family. I remember I envied the man who delivered the Sparkletts water to our house because he had a job, and I didn’t have the $14 to pay for the water he delivered. To give you some idea of my intellect: I looked at my situation and figured out what I was doing wasn’t working. Smart man, right?

I decided to get back in the pension business. At least there I knew how to earn a living. I had ruined my credit by paying 60 and 90 days late, but I was determined to have two things: one, no more consumer debt; and two, not have to work for a living. I paid off my credit card debts in eighteen months after getting back into the pension business.

In 1983, with two other people, we established our own pension administration firm. Again, I did not do this alone, I had two partners, and we had staff. If you recall from the first section of the book on achieving your goals, allow other people to support you. I did that and we were able to grow a company quickly and larger than I would have been able to do on my own.

In 1985 my brother died, and I inherited the other half of the four-plex. The profit from the rental income after expenses was now at about $700 per month.

By 1987 our pension company had grown large enough we could sell it, and we did, to a division of a public company.

I went from envying the Sparkletts man in 1982, to having a choice of working or not working in 1987. The things I did, paying myself first, setting long-term goals, not doing it by myself, are the tools I’m sharing with you. I have first-hand knowledge that this stuff works. And if you knew me, you’d know you don’t have to be intellectually gifted to do it. I can’t even pick out clothes that match.

My next relationship lasted about ten years before my second divorce. If I had taken the advice of my longest-term friend, who was also a divorce attorney, it would not have been as bad as it turned out. I lost half of my assets with the second divorce and had to start over again.             At least this time I knew I could rebuild my net worth. About a year later I met my current wife. We have been together since 1998 and I’m in my last and best marriage. My life is better than ever and I used the concepts I read to you to create a multi-million dollar net worth with apartment buildings, starting with $18,000 that took me three years to save up at $500 per month.

I still cannot pick out clothes that match, but I can create a structure to produce financial results, I can ask others for help and support, and I can take action. I bet you can, too. You’ve already demonstrated that by listening up to this point in the audio book.  This is true even if you haven’t yet filled out the forms.

The reason I do the UCLA classes, other public workshops, the corporate training, and some individual coaching is to assist other people in creating financial freedom and become philanthropic. This is why I created CD programs, books and online programs.

As a reminder, because I created Complete Financial Choice® I now only work to donate 100% of the profits from my books, programs, and coaching to charity, primarily ShelterToSoldier.org.

It can be done and I’m proof of that. Others I’ve worked with have also proved how powerful these concepts are so you don’t have to go through what I went through.

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Here’s your opportunity to grow: Send an email to Rennie@WealthOnAnyIncome.com and put All Forms in the subject line to get all of the forms I spoke about. Or, buy a copy of Wealth On Any Income from my website instead of Amazon because profits from any book purchased from my website are donated to the charity Shelter To Soldier.
Go to www.WealthOnAnyIncome.com/books

If you would like an audio book version, please send an email to Rennie@WealthOnAnyIncome.com and put Audio Book in the subject line.

Listen to the Wealth On Any Income podcast on your favorite platform and please rate, review and subscribe.

Until next week, be prosperous. Bye, bye for now.

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