Why does wealth matter? What am I trying to accomplish here?

It is simple; if you are a coach, author or speaker and you have a message to deliver it is difficult to be a shining light to others if you can’t pay your own light bill! I want you to be financially strong to continue to do the work you are here to do.

To continue; as you know, one of the most important keys to creating wealth is the right attitude. That is why I decided to share with you in a series of articles the Attitudes of the Wealthy. This is the sixth article of that series.

Attitudes of the Wealthy #16: The Wealthy Share Their Knowledge

To begin, we will talk about how the wealthy are willing to share how they succeeded. We promote ourselves and our value. We are not stingy with our knowledge.

A simple example of sharing knowledge was in the article where I explained in detail how using debt to purchase a property versus paying cash can increase your rate of return by over 300%. This also can apply to buying solid stocks, investing in your business, or any other area where the return will be greater than the cost of funds.

And I also warned that using debt to grow wealth can backfire. If you over-leverage a piece of real estate and the market turns around, you can lose more than just one property. This did happen to several people that I know personally.

But again, the point is that the wealthy have a prosperity consciousness and are willing to share not only what works, but what does not work.

The other day I was speaking with a coaching client and she told me about her bad experience with a financial advisor. She was being spoken to in a way that confused her with terms that she didn’t understand, and the advisor would not explain. As it later turned out, the planner was stealing money from the accounts of her retired clients and later went to jail.

That is not how the wealthy share information.

I am willing to share the struggles I had in building a real estate portfolio; how the first few years a plumbing bill could wipe out our profit for the month; and how I had to do some repairs myself to maintain profitability. Looking down the road after 20 years, I no longer have to work. I teach what works and what doesn’t work in my UCLA class.

I share with those that want to learn. That is the attitude of the wealthy.

Attitudes of the Wealthy #17: Investable vs Personal Use Assets

Next, we will talk about how the wealthy focus on investable assets instead of personal use assets, and I will explain the difference.

When your CPA or Financial Planner says your house is an asset, yes, that is where you list it on a Balance Sheet, but it is not an investable asset for your financial freedom. It is a personal use asset.

When a wealthy person looks at a Balance Sheet, they are looking to see what investable assets they have. What they are looking for are the assets that generate an income. An asset that provides an income to you allows you to choose to work instead of having to work.

Investable assets are things like money in the bank, stocks you own, bonds that pay interest, real estate investment trusts, triple-net-leases, tax liens you own, life settlement investments, annuities, apartment buildings, office buildings, an operating business and more.

Personal use assets do not provide an income; you use them personally. They are things like your automobile, furniture or jewelry, or as I mentioned earlier, the house you live in.

You might say to me, “I purchased my home for x, and now it is worth 2x. How can that not be an investable asset?” Easy, if you sold it to capture that gain, you still have to have somewhere to live, so you might buy another house.

And any house you own, and live in, generates expenses and not income. Even if your home has no mortgage you still have property taxes to pay, insurance, utilities, and repairs. Your home creates expenses, not income. The exception would be if you rent it out to boarders or for AirBnB use.

The wealthy mindset understands the difference between investable assets and personal use assets.

Create a list of everything you own and measure the amount of investable assets you have. That will give you an idea of how close you are to creating financial freedom, where work becomes a choice instead of a requirement.

Attitudes of the Wealthy #18: The Importance of Language

To wrap up this article in the series we will talk about how the wealthy understand the importance of language; when speaking to others as well as in self-talk.

When my daughter was very young, like 9 or 10 years old, we were skiing at Mammoth Mountain in California. It was about a five hour drive from our home in Los Angeles. We approached one of the downhill runs that was for experienced skiers. My daughter said, “I can’t go down this.”

I turned to her and said, “I will lead the way and you follow me.” After we got down near the bottom of the hill I asked her to turn around and see where we came from. She exclaimed, “Wow, I guess I can do this.” My next comment apparently stuck with her ever since; “I do not ever want to hear you say there is something you can’t do.”

She is now a fortyish mother of two fine young boys. She put herself through law school. And while raising her first son, studied for and passed the bar exam for Massachusetts and became an attorney.

My wealthy mindset said my daughter can accomplish whatever she wants. Her self-talk says whatever she puts her mind to, she can accomplish.

When I talk to my tenants I let them know I want them to be happy and I will serve them. The actions I take mirror the statements I make. They in turn pay their rent on time and help me maintain quality places to live.

My self-talk says I lead a blessed life; I have prosperity, health, and wonderful relationships. I am grateful for what I have been blessed with. If the tapes that play in your head say things like, “You don’t deserve.” Or “You will never succeed.” Then change the tapes. If you cannot do it by yourself, enlist the help of someone else.

Pay attention to your self-talk and align it with the wealthy mindset you want to create.

To your prosperity,

Rennie

Author's Bio: 

As a highly rated instructor at the University of California in Los Angeles (UCLA), Rennie uses his award-winning, best-selling book, Wealth On Any Income, to teach effective money skills from both the emotional/psychological aspects as well as the practical components. His book has been translated into five languages. Rennie is a retired Chartered Life Underwriter (CLU) and Certified Financial Planner® (CFP®) and often adds BFD to his credentials.

His extensive knowledge on real estate and finance is useful not only to those who own or invest in real estate, but to anyone striving for a better life by trying to achieve financial freedom.

His clients range from financial professionals, like CPAs, stock brokers and financial planning firms, to entrepreneurs in the transformational space (coaches, authors and speakers). He also works with large organizations like the FBI, American National Insurance and Toyota Motors.

After 40 successful years in financial services, Rennie now works to donate 100% of the profits from his speaking fees, wealth programs, books and business coaching to charities, the primary one is www.ShelterToSoldier.org where dogs are rescued, trained and donated as service animals for soldiers with PTSD and TBI (Post Traumatic Stress Disorder and Traumatic Brain Injuries)