This is the ninth in a series of articles revealing the Myths that Keep Your Broke. In these articles, I will uncover the many myths that too many people believe. These myths can prevent you from creating wealth and Complete Financial Choice™. Let’s start destroying them.

Myth #17: I Want a Big House

I was recently out to dinner with my teenage grandsons and they asked me how you become a millionaire. My older grandson, who lives in an expensive city where the average home price is close to a million dollars, was trying to figure out how he could afford his own home one day.

To prepare for his high school graduation next year, he was asking about the college majors, careers, and paychecks of the wealthy. I am sure at this point you can imagine what my answers were to paychecks versus building wealth. But then he asked if he is able to buy a million-dollar house, does that make him a millionaire.

Let me explain: When your CPA or Financial Planner says your house is an asset, yes that is listed in the column under assets on a balance sheet, but it is not an investable asset when discussing financial freedom. It is a personal use asset.

An investable asset is something you own that generates income. These are assets that allow you to choose to work instead of having to work.

Examples of investable assets are money you have in your savings account, 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 or an operating and profitable business.

If my grandson buys a million-dollar home one day and lives in it, regardless of whether or not it appreciates in value, that is a personal use asset. If he sells it, even for a profit, he will still need to buy another house in which to live. And even after he pays off the mortgage, he will still have property taxes to pay, insurance, utilities, repairs, and maintenance in order for him to continue to live there and for it to retain its value.

The place where you live creates expenses, not income – unless you rent out some portion of your personal property on a daily, monthly, or annual basis.

I now realize how lucky my seventeen-year-old grandson is to learn now what I didn’t fully understand until I was close to fifty. This is why I feel it is so important to pass this knowledge on to you.

It is never too early or too late to learn how to buy things that make you money and build wealth, not just the things that take your money. In understanding this difference, we are one step further on the road to wealth, rather than just owning things – even if it is a million-dollar home.

Myth #18: I Speak Just Fine

How you speak not only gives others clues on how to treat you, but it also tells you how to treat yourself. Language matters to the wealthy, both in how they speak to those around them as well as in their self-talk.

I recently heard about Tara Westover’s memoir Educated. Tara was raised in rural Idaho by survivalist parents. Her father had a fear of the government, so she and her siblings had very little access to healthcare or education. However, according to Tara, although her childhood was difficult, her parents weren’t cruel. Throughout the book, she is emphatic that her whole family, including her mom and dad, were energetic and talented. Whatever their ideas were, they pursued them. At first glance, Tara’s story seems overwhelming and sad.

Yet it was not only Tara that turned out well. Three of her siblings have Ph.D.s. It was because her father believed in positive self-talk. Even though his descriptions of the outside world seem very negative and cynical, he told his children that they could teach themselves anything, and in turn, anything was possible. And for many of Tara’s siblings, it has become a self-fulfilling prophecy. It doesn’t matter where you come from, it matters how you speak to yourself and others.

Tara also understood that she didn’t know how to speak to others so that they would see her the way she saw herself. So throughout her education, she asked for help from her professors, worked hard on learning to be articulate, and learned how to thoughtfully craft her words in a way that people would really see and hear her. With no early formal schooling, today she is a world-renowned author, respected by people such as Bill Gates and Oprah. How you speak to yourself and others, really is the greatest reflection of who you are and who you want to be.

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 by maintaining 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, just like Tara learned, enlist help to learn to speak in the way you want to be seen.

To Your Prosperity,

Rennie

Author's Bio: 

Often in the media and in a recent TEDx Talk, Rennie Gabriel supports individuals and business owners to create work as a choice, instead of a requirement, just as he did for himself. Rennie had gone broke twice (two divorces), but using the same concepts published in his book, Rennie created more wealth in each recovery than what he had prior.

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 of 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)