May 1, 2023 • 56 mins
After two divorces and a business failure Rennie Gabriel went from broke at age 50 to multi-millionaire after learning the three secrets of the wealthy (despite failing high school math).
Rennie now donates 100% of the profits from his online programs to a charity, Shelter to Soldier, which trains rescue dogs for wounded military warriors.
90% of the population has been taught nothing about handling money effectively, including CPAs and Financial Planners. With Rennie's program you:
Learn three secrets the wealthy know.
Learn how to have others gladly pay off your debt
Learn 5 things that keep you broke.
Rennie is a TEDx speaker, and his award winning, best-selling book, Wealth On Any Income has been translated into eight languages.
Rennie now donates 100% of the profits from his online programs to a charity, Shelter to Soldier, which trains rescue dogs for wounded military warriors.
90% of the population has been taught nothing about handling money effectively, including CPAs and Financial Planners. With Rennie's program you:
Learn three secrets the wealthy know.
Learn how to have others gladly pay off your debt
Learn 5 things that keep you broke.
Rennie is a TEDx speaker, and his award winning, best-selling book, Wealth On Any Income has been translated into eight languages.
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Transcript
Episode Transcript
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(00:01):
Welcome to Life Mastery Radio with ToddAllen and Jackie Bailey, the show that
dives into the science of higher consciousnesswith inspiring topics such as abundance, intention,
help, manifestation, love and transformation. Join Todd, Jackie and their
guests of leading authors, speakers,coaches and entrepreneurs weekly at ten am Pacific.
(00:22):
Learn to live a peaceful life withintentional Mastery. It's all right here
with stories and messages to support yourwell being and most evocative dreams. Now
here's your hosts, Todd and Jackie. Hey, Hey, hey, it's
another groovy day, and most ofyou know that's because I make it that
(00:43):
way. And it's Life Mastery Radio. Dave highlight of my week. I
know Jackie enjoys the two her andI get together and we bring you some
of the best selling authors, topnotch leaders, all on the cutting edge
of their own becoming. But guesswhat, they're there on that edge to
(01:03):
push you off your edge of yourown becoming with great thoughts and ideas for
you to use on your very ownlike mastery journey. As always, I
have my co host with me today, Jackie Bailey. Hi, Jackie,
how are things in the League project. They're going great, and we actually
(01:25):
have a workshop tonight, not somuch for the kiddos, but for the
adultos. We've got I've partnered witha couple of other speakers, Justine Reese
and Benny Mobley, who are expertsin their fields, and we're putting a
workshop together tonight that's called Reinvent Youat any age. So anyone who's maybe
(01:49):
transitioning between careers or looking for workagain after being out of the workforce for
a while, or even retiring andthinking how can I make an impact on
the world, This is going tobe a great workshop for you, maybe
even someone who's looking for a sidehustle. And Justine Reese is a voiceover
talent, Benny Mobley is a personaltrainer, so we can get you physically
(02:12):
fit and works on mindset as well. And then of course I can help
you to develop your own unique keynotespeech and have it in your pocket for
opportunities that come. So well,that's tonight at time it's four thirty pm
Pacific, and be happy to putinformation into our Life Mastery radio webs or
(02:34):
Facebook page and everyone can take alook. Ye check out our Facebook page
Life master Radio with Todd and Jackieand Jackie'll put a link up there if
you were interested. You should beinterested. Check it out. Be a
fun time. I think both thosepeople have been our guests, or just
Benny. I don't think Benny.I don't think either one of them have.
(02:55):
Benny Mobile hasn't been on the show. I think, okay, we
gotta get him on the show.Jack I'm going to remind our listeners that
today's show page is at wwwlifemastery radiodot com. You can go there and
any links that we talk about withour guests today, we're talking about something
(03:15):
really cool. Everybody has it,everybody uses it, everybody has the ability
to distribute it, but the ideais to hang on to it. So
I think we will be talking aboutthat. But any links that we talk
about about that with our guests willbe on today's show page. You can
(03:36):
sign up for our newsletter while you'rethere. Jackie produces a newsletter every week.
It highlights who's been on the show, who's coming on the show,
and a blog post about the showthat we just did, so you can
stay formed with all things life Mastery. Both of our books are there.
You can follow the links to Amazon, and am I forgetting anything Jackie?
(04:00):
No, sounds pretty complete. Ithink, Okay, let's get ready for
the really big show. And todayis Jackie's guest, so that means she
has the introduction take your way,Jackie. Well, it was so funny
because a few weeks ago I wasspeaking in Los Angeles at the best uxbo
and I had a booth and I'mstanding there at my booth and I see
(04:23):
this hi walking toward me. Andunlike myself because I usually can't remember people's
names in the moment, but Renniecame right to my mind. I said,
Ready, I don't think he rememberedwho I was at the in the
moment, but it was great tosee him, and I thought, this
is a sign that he needs tocome back on the show. He's got
a message that people need to hear. So it is delightful to have him
(04:46):
back here with you. So letme tell you a little bit about Rennie
Gabriel. He, after two divorcesand a business failure, went from broke
at age fifty to a multi millionaire. And this was after learning three Secrets
of the Wealthy. Despite the factthat he didn't do very well in high
school math, and in fact hefailed I think. But Rennie now donates
(05:11):
one percent of profits from his onlineprograms to a charity that's called Shelter to
Soldier, which trains rescue dogs forwounded military warriors. Yea. And he
feels that ninety percent of the populationhas been taught nothing about handling money effectively,
including CPAs who we pay to helpus with our own money, and
(05:36):
financial advisors. So with Rennie's programs, you learn these three secrets that he's
learned of the wealthy, and youlearn to have others gladly pay off your
debt. Hello, and you learnfive things that keep you broke. Okay,
those are good to know. Sohe Renny is a ted X speaker
(05:58):
and his award winning US selling bookis titled Wealth on Any Income. It's
been translated now into eight languages.So he is really spreading his message out
into the world, and we aredelighted to have him with us today.
Welcome Rennie. Thank thank you,thank you, Jackie. What a beautiful
introduction. Blush. I know,sometimes it's hard to listen to your own
(06:25):
ego being boosted, right, butthen again, you go, hey,
I have accomplished some pretty awesome stuff. I think we all need to be
reminded sometimes absolutely well, you're makingan act in the world. So yeah,
And in the introduction you talked aboutsome of the challenges that are Jackie
(06:47):
talked about some of the challenges thatyou went through. But what is it
about money that I mean, peoplemake it, they spend it. It
seems to run through most people's pansand fingers. And I think I heard
earlier today I was watching some ofyour podcasts. You know, we're really
(07:08):
not taught how to handle it.Maybe expound on that a little bit.
Yeah, I mean it's easy tounderstand it when you look at how education
around important items show up or don'tshow up. And if you look at
the situation, you know, asJackie said, ninety percent of the people
(07:30):
have not been taught how to handlemoney effectively, powerfully, even adequately.
And the reason for that is ifyou look at what a parents teach in
the home, well, parents can'tteach what they don't know. If they
learn by trial and error, Imean, that's the best they can do.
If you look at the school system, they don't teach anything about financial
(07:50):
education. I was reading that recently. As recently as like last year,
eleven states in the United States,we have fifty five zero so far.
Eleven of them are now requiring somelevel of financial education before you graduate high
(08:11):
school. Well, now, Idon't know what it includes, but I
doubt that it's adequate. It's probablyhow to balance a checkbook. Right,
No one uses anymore. There wasn'teven in that requirement. I mean,
it's it's a piece of plastic.But but you still got to understand reconciliation,
(08:35):
right, Renny. I mean,you got you because it's like having
a bucket of water, and ifthat bucket has holes in it, you
don't really know where your money's goingexactly. But Todd, here's the difficulty.
When I had a checking account,I don't know, I was probably
about thirty years of age, andI realized I'd never reconciled it and I
(09:00):
wanted to know how to do it. So I went to the bank and
asked an employee at the bank.I don't know it was the teller or
the new accounts person. I said, you know, I get these statements
from the bank every month, andit says to balance my checking account follow
these instructions. I tried to doit. But I couldn't figure it out.
(09:22):
Remember I failed high school math.And the woman at the bank,
the employee whose job it was tohelp people with their finances, said,
oh, I'd like to help you, but I also don't know how to
do it. Oh wow, Soyou're going to the bank that provides this
(09:43):
stuff. Those employees don't know how. You turn to certified financial planners.
It's not taught as a part oftheir education. You go to certified public
accountants, it's not in their programeither. So you talk about balancing a
checkbook. Wo, even if youdo it today, hardly, I don't.
(10:03):
I have one tenant out of twentyseven families that writes a check to
pay their rent. No one's evendoing that anymore. Yeah, I think
go online. You know. Itjust reminds me of what's going on today,
because we just had a huge bankin California, h two of them.
Oh well, two banks in Californiafailed and none of the none of
(10:26):
the staff, none of the staffhad any banking experience, yet they were
they were in control of billions andbillions of dollars. How does that happen?
I mean, that's and that justgoes to show you you know our
mentality in today's society. Yeah,it's pervasive. So anyone who feels guilty
(10:48):
that they don't know how to doa budget, or don't know how to
complete a balance sheet, or don'tknow what to do for a cash flow
statement should not feel guilty because youdon't learn this by osmosis. It doesn't
happen that way. And it tookme years of searching to find the solutions.
And when I did and I startedteaching it, I realized the same
(11:13):
questions came up over and over andover again, which is why I wrote
the book. I'm laughing now asI thought about the process. I've been
doing workshops for ten years, teachingpeople these basic foundational skills, and I
said, you know what, I'mgoing to write a book. I'm going
to put all the questions I've beenasked in the book. I'll have all
(11:35):
the answers, and then people won'thave to come to the workshops anymore.
They won't have to bother me withtheir questions. I was so naive,
because that is not how books work. People have to buy them and read
them, right, well, yes, and then the people who read them
want more and they go to theauthor to say, oh I love what
(11:56):
you had to say. Teach memore, and it's like, no,
that's not why I wrote it.Yeah, it's all in there. That's
funny. Well, well what isthat? So you have a three step
process, and I think we alreadytalked about it, but let's just highlight
a little bit because I think thefirst step, or the first part of
(12:16):
that process is awareness, right,I mean becoming where is the money going?
Well, yeah, that's actually thesecond step. Oh yeah, but
you're right. The first step isawareness. I call it mindset. I
call it attitude because when I lookedat it and I wrote a second book,
Attitudes of the Wealthy, and ithas like thirty two ways that wealthy
(12:39):
people think and act. It's theirattitudes ordinary people don't understand or aren't even
aware of. And you know,I guess if I were able to institute
all thirty two, i'd be abillionaire instead of a millionaire. But the
point is, it's attitude. Andthat's the first of the three steps,
(13:01):
is attitude. And I'll give yousome examples. One of the things is
that CPA's other financial gurus tell peoplethey should pay off debt before they begin
to invest right, And as faras I can see, that is the
(13:22):
absolute worst possible advice anyone could begiven. Yes, they need to know
how not to create more debt.But the point is if they focus on
paying off debt, they're on aroller coaster where they're paying off the debt
because that's their focus. Something goeswrong, the car breaks down, a
water, heat or bursts, andthen they have to go back to the
credit card again, and they're onthis roller coaster or paying off debt.
(13:46):
It comes back, paying off debt, It comes back, and they get
to age sixty, sixty five,seventy, and now they've paid off their
debt, but they have nothing else. So Todd, let me ask you
a question. You're ready, Toddto be put on the spot. I'm
ready, Okay, all right.So let's say you have no debt.
(14:11):
You have no car loans, youhave no mortgages, you have no credit
card debts, you don't have nodebt anywhere. Now that's all I'm saying,
is your situation that you have nodebt, would you be able to
stop working and would you have financialfreedom? No, I'd have to have
some income. There has to besome stream of income. In order to
(14:35):
pay the light bill. Yeah,or what if you wanted to eat and
buy food? So you're absolutely right. Without the income, you still have
to work. So either you're workingor you have your money working for you.
And the only way that can happenis that as you're earning money,
you're setting it aside to create anincome that will pay you later. And
(14:58):
if you take that money, I'llgive you the best example for me.
I'm age fifty, I'm broke,but I'm at least earning a living.
I'm earning five thousand dollars a month, and so what did I do?
I used a concept that's five thousandyears old, another concept the wealthy or
aware of another attitude that's crucial.I treated myself like I deserve to own
(15:22):
some of this money I'm earning,and I set aside ten percent. So
even if I was short in payingmy bills, I still set aside five
hundred dollars a month. Now withinthree years, okay, I'm aged fifty
three, I've got a whopping eighteenthousand dollars, but I'm married for the
(15:48):
third time. My best, mostwonderful, fantastic have her till I die.
Wife, we've been together twenty fiveyears now. Anyway translations, she
knows this realtor and he says,Rennie, there's this triplex for sale.
It's a fabulous investment. You oughtto get it. I'm sorry, I'm
in Los Angeles. Eighteen thousand dollarsdoes not buy any real estate. So
(16:14):
my wife says, well, hesays, this is such a good deal.
I'll come up with eighteen thousand dollars. Well, now we have half
the down payment. The realtor says, this is such a good deal.
I'll come up with thirty six thousand. The three of us will buy it
together, which is what we did. Now. Had I taken that eighteen
thousand dollars and pay off the creditcard debt from when I was broke at
(16:37):
age fifty, I would not havehad the money to invest in this three
unit property. Well, within fiveyears, my eighteen thousand dollars was worth
one hundred and twenty five thousand.And what I saw is here's another attitude
of the wealthy. They use debtto create wealth. I borrowed more money
(17:03):
to make down payments on apartment buildingswith my wife and the realtor, and
within five years we had forty sevenmore units. Wow. So I went
from broke five years earlier except formy eighteen thousand dollars to now having fifty
(17:23):
apartment units with my wife and thisrealtor and having the level of income.
Or if I chose to work orI chose not to work, I had
a choice. So what I'm gettingat is I used that money to create
wealth, not payoff debt. Rightmade You made the money working for it.
(17:45):
So I guess my question. Somethingmy dad always told me is you
can never go wrong with real estate. If you hold on to it long
enough, you can never go wrong. Is that your number one go to
I would say you can go wrong. You can buy in the wrong area,
You could buy the wrong kind ofreal estate, so you can.
But yeah, if you hold itlong enough, you'll probably be okay.
(18:07):
I mean, there's even a conceptcalled land banking, where you buy raw
land that's in the direction of acity that's growing, and eventually some developer
will buy it from you and you'llhave a profit. So I mean,
there's all sorts of ways of doingreal estate, from many storage facilities to
um apartment buildings to office buildings toDelaware statutory trusts and real estate investment trusts,
(18:34):
and on and on, running outof breath trying to listen all but
keep it simple, right, Ithink that would be your message. Just
keep it simple and and and youknow, look for that good deal.
Yeah, And there are always gooddeals, even in times where it seems
like best deals all right, duringduring during rough times, if you've got
(18:56):
some cash, right that when itis time to look for something, because
that's when the good deals are.If you've got the cat. You're absolutely
right, Todd. And it wasin nineties. Somewhere in the nineties we
had a horrible earthquake in the LosAngeles southern California area, and many apartment
(19:17):
buildings were ruined, and the peoplewho had cash bought those buildings, refurbished
them and had tremendous increases in valuebecause the prices were so depressed due to
the earthquake. So you're right ontrack, Todd. Wow, that's fast.
(19:37):
So you said you said something thatwas curious. You said that this
idea has been around for five thousandyears. Would that be would that be
a little book called the Richest Manin Babylon? Yes, it would be
that little book that translated juniform text. Well shucks. When then you chisel
(20:00):
in stone and tablets, tablets,they discovered the clay tablets. They could
literally trace someone's life. That occurredfive thousand years ago, and it was
like working a twelve step program.The guy got into debt, he fled
the city, decided to come backand make amends and clean up his act.
(20:22):
And that's what it was. Thebasic principle was yourself, like you
matter, keep ten percent of whatyou're earning and that will build your future.
And yes, it's five thousand yearsold. That was the cornerstone of
my creating a multimillion dollar net worth. It's a cool little book and it's
it's still available, and it's it'sreal small and it will it will change
(20:47):
your whole outlook. And so ofRennie's book. Get a hold of Rennie's
book too, because I'm sure itgoes right along that same same thought process.
Absolutely. I talk about that bookin my book, and it was
written about one hundred years ago.So you got to figure two things based
on concepts five thousand years old.It was written a hundred years ago.
(21:10):
It still works, it always will, that's just the way. Well,
Renny if you're taking, if you'regiving yourself ten percent of everything that you
earn, I'm assuming you mean savingit or putting it somewhere into an account
that you don't touch. So arethere different ways to save or should you
(21:30):
invest some of that early on beforeyou start saving it? I mean,
so what do you do with thatten percent? Two things? One of
them is your right. You're settingit aside somewhere where you're going to keep
it and it will be spent onnothing. You're not going to use it
to repair the car or anything else. It is helpful to set aside another
(21:52):
ten percent so you can spend lateron the things you didn't know we're going
to show up. And so,as a rule of thumb, if anyone
lives on eighty percent of what theyearn, it'll all work out. So
ten percent to keep forever, tenpercent to spend later, and eighty percent
to just live on and buy thegroceries and pay the rent and make the
(22:15):
car payments and buy clothing for thechildren and all the rest of that stuff.
So what do you look for then, in a savings program that's going
to give you a good return?Well, taking the consideration my situation of
five hundred dollars a month, there'snot much you can do when all you've
(22:37):
got to invest is five hundred dollars. So what I did was I bought
some individual stocks of companies that Ithought would be around even when I turned
to dust, like General Electric orGeneral Motors, and there were the companies
that make up the Dow Industrial thirty. I figured they're going to be around.
(23:00):
Well, this happened to be whenthe dot com bubble burst and other
people who lost thirty percent of theirportfolios because of their aggressive investing. I'm
ahead by one percent. Okay,it's not what I was shooting for,
(23:22):
but at least still had all themoney right. So when the real estate
opportunity came available, I just soldall the stocks that it turned into be
about my eighteen thousand dollars, andI popped it into the real estate got
it. So it takes a littlebit more than you know, your few
hundred dollars a month. You couldput it into a mutual fund. As
(23:45):
long as it's not something really aggressive. You can put it into a savings
account. You could buy some individualstocks with it of major companies. So
those are some of the things youcould do. Okay, cool. Now,
in first part of your book,you talk about a lot of the
i'll call them the myths, butthere are beliefs that we have about money
(24:07):
that may not necessarily be good beliefto have. Right, So, what
are some of those you'd like tomention today that you know are pretty typical
of people. Well, I thinkthe first one that we've already talked about
is the idea that you have tofocus on paying off debt before you begin
to invest. And, like Isaid, that's the most damaging. Yeah,
okay. A lot of people thinkthe more money they earn, the
(24:33):
more wealth they'll create. But itdoesn't matter if you're overspending just because you're
in more income. And I wentthrough this cycle for decades. I started
off as a school teacher earning sixtyfive hundred dollars per year. Wow.
Yeah, okay, it's not alot of money. So I left teaching
(24:56):
school and went into sales and doublemy income. And when I was teaching,
I was short one hundred dollars amonth. So I figured, oh
my gosh, I've doubled my income. Now a short two hundred dollars a
month, buy more stuff. Right, say that again, Todd, buy
(25:17):
more stuff. Right, The moreyou make, the more stuff I can
buy. You're right, you knowyou're gonna have a better lifestyle. Whatever.
When I passed one hundred thousand ayear of income, now I'm two
thousand dollars a month short. Earningmore money was not the key. Properly
handling what I was earning was thekey. And the first thing I looked
(25:41):
at. Now, this is alittle bit embarrassing, but where I discovered
how to handle the money effectively anddo a budget was in a program called
debtors Anonymous, ally the twelve stepprogram for people who don't know how to
handle money. And that's where Ilearned how to determine what's coming in and
(26:07):
where I'm spending it, and howto properly allocate it. And I not
only wiped out that two thousand dollarsa month shortfall, my income jumped from
one hundred and two thousand to onehundred and fifty thousand. It was like
the universe was saying, Renny,you finally figured out how to handle money.
(26:30):
Here you can have more of it. It. Give some examples of
that. What are some examples ofmaybe not what you found, but you
obviously worked with a lot of people. What is their Shotgunah, when they
discover Wow, look at all thatmoney going out the window. What were
they What were they spending on?What kinds of things are we talking about?
(26:52):
We're not talking about things as muchas the categories. And I'll give
you an example. When I createdthe cash floor form that I have my
clients use, I have a lotof areas where I have little stars that
show the items that don't show upon a monthly basis. You know,
(27:14):
you know what your rent is goingto show up. You know you're buying
food on a regular basis. Butpeople don't plan for things like the registration
fees on their automobile, or thatthe car will break down, or the
property taxes come due twice twice ayear, or maybe they have a life
insurance premium that's annual and there's nomonthly plan to have the money available for
(27:40):
that when it shows up. Andthat's what I saw people. A good
example, I had a legal secretary. She came to me because she had
refinanced her house, paid off allour credit cards, and then a year
later she got the credit card debtagain. So we went through this cash
flow form, and she wasn't settingaside money to buy clothing. She wasn't
(28:04):
setting aside for any repairs on hercar or just maintenance, buying new tires
or whatever it was. And sowhen these expenses came up, she had
to go to her credit card.And she didn't realize about expenses that don't
show up monthly. And I justhad this conversation with the young girl that
(28:27):
we're helping with our go fund me. She said, I'm really good with
my money. I know where itgoes. I plan, I do this,
I do that. Her young daughterwho passed away at age two.
She had no plan to pay forher medications and medicines and things like that
(28:48):
that the little girl needed that shewas buying at the pharmacy. That wasn't
a part of her budget, butshe had to spend the money anyway.
She only looked at what her rentwas, what her food was, what
her car payment was, what hergasoline was, the things that she knew
showed up every month. But shewasn't planning for medications. So people who
(29:17):
even think they're good at it misshuge things. Yeah, so is that
form in your book, then yourcash flow. Yes, it is in
your book, and people can getyour book and then start to take a
look at where those holes are atin their bucket. Absolutely right now something
(29:37):
important because I donate one hundred percentof the profits from my books, from
my programs and things like that tocharity not only Sheltered a Soldier, but
other animal and veteran charities. Ifthey get it from Amazon, a few
cents of profit is created. Butif they get it from my website,
(29:59):
I donate the hire purchase price ofthe book. They could even go because
I have a link to the charityat the top of the homepage. If
they just make a donation of thecost of the book, I'll send the
book out to them for free.Nice so you know, they obviously can't
donate anonymously. I don't know.I don't know who to give the book
(30:21):
to ye, but if they makea donation they let me know that they've
done it, I will send themthe book for free. So as part
of your prosperity plan to also dophilanthropic work, I mean, is that
something that's icy on the cake oris that something that you do at the
same time you're trying to build well, you can do it, and it
(30:41):
doesn't have to be money. WhenI was when I and my children were
young, I didn't have a lotof money to donate to various charities.
But what we did have was time. We would go and work in a
soup kitchen, or we would takeblankets and clothing and deliver them to homeless
shelters. So even though we didn'thave the money, we did other things.
(31:04):
You could work at a food pantry, you could, you know,
volunteer at a school. You couldvolunteer to clean up the beach. There's
all sorts of things you can dobesides the money. But what I found
are the people that are attracted tome are the people who have a desire
to donate or support causes or charitiesthat matter to them. That's called the
(31:30):
law reciprocity. Right, Is thatis that where you're practicing? Is that
where you're you're highlighting? Um,yes, I know I don't use the
term, but yes, but that'sthe idea. But that's what's happening.
I mean, if you look atmy nine step Road to Complete Financial Choice,
which people can get for free,go to my website and give forwards.
(31:51):
Go to wealth on any income dotcom forward slash ted X. They'll
see my ted talk where I talkabout how we've been program to believe it's
better to be poor than to bewealthy. And the cure is the nine
step roadmap, which they can getfor free. In that nine step roadmap,
(32:12):
it says the nine step roadmap tocomplete financial choice and philanthropy. Nice.
So the goal is to get peoplein a financial situation so they can
donate to the causes that touch theirheart. Right, very important, Ranny.
Do you address any situations where oneof the spouses is spending money without
(32:42):
the other spouse knowing it? Andhow I mean? Is there a safe
way to set up accounts? I'mnot I'm not asking for myself. I
was thinking of this recent this recentmurder out of Alabama or something family where
he was obviously addicted to drugs andwas embezzling money from the firm and the
(33:04):
family and the wife I'm assuming hadno idea about it. Now she can't
even testify about it because he murderedher. But I'm just wondering, is
there he addicted of it? Hehasn't, did it? Yes, exactly?
Um? Is there a safe wayto set up some sort of accounting
system with these newly married couples sothat they don't have to they'd be accountable
(33:29):
to each other, I guess,is what I'm saying. Yeah. The
difficulty that I've seen in situations likethat is where one spouse has total responsibility
and the other spouse wants no responsibility, right, And that's how it shows
up because because he was spending Ithink I think I read reports, so
he was spending like sixty thousand dollarsa week on narcotics, which is the
(33:54):
firm. And for your spouse notto realize that that money was just poofing
away, yeah, buggles of money. But then again, it's like you
said, if I don't care whathe's doing with it, you know I
have plenty for me, then whatever, right, right, And that's where
things go wrong. So what Iadvise couples to do is to both be
(34:17):
involved in the process. And Iunderstand how one spouse doesn't want to be.
As an example, my wife doesn'twant to be, but I do
require she at least knows all ofthe accounts we have, knows what the
account balances are, and every oncein a while, maybe a few times
a year, she'll say, doI have enough money in my checking account?
(34:42):
You know that that's about as muchinvolvement as I can get from her.
So I'll say, yes, youdo, let's go over it so
you know. I require that,but I can only go so far.
So she does know. But thepoint is other spouses aren't willing to know.
And if you've got a spouse who'shiding what they're doing, they certainly
(35:07):
don't want the spouse involved, right, right, And that and that leads
that leads to that kind of behavior, right. I mean, if you're
not producing a family P and Lstatement profit loss statement and reviewing it on
like a monthly basis, that justopens a door for nefarious activity. Oh,
(35:27):
absolutely right. And one of thethings that I realized even in our
household, and this is a confessionon my part, I used to use
a little spending register that I wouldprovide to my clients for them to use.
I see your cats stretching in thebackground. The one who messed with
your knobs. He's there every week. It's just amazing. Every every Tuesday
(35:51):
at ten am, that's where youpart. Yeah, and I'm thinking,
oh, do I have ADHD?Can I do anyway, So the spending
register. I have the spending registerwhere I would track all the money that
flows out of my hands, youknow, like into the parking meter,
into the grocery store or whatever.You know. I don't put down the
mortgage payment because that's just once amonth and that's it. But the money
(36:15):
that leaks out I track well.After ten years, I decided I could
stop this practice. I've got ahandle on it. I've got my wealth.
I don't need to track anymore.Then I got involved in a new
business online and I thought, youknow, I got a good feel for
what I'm spending. And I saidto my assistant. She asked me some
(36:37):
questions. I said, yeah,I've probably spent about one hundred and twenty
thousand dollars on my education in thisarea. Says no, Reny, I
think it's much more than that,so that I don't think it is well,
I decided to do the research andsee what I've spent on the various
programs and the masterminds and the coaching. It wasn't one hundred and twenty thousand
(36:59):
dollars. You might have guessed thatI wasn't tracking it in my spending register.
You want you want to take aguess as to what it was.
Oh, that can get pretty spending. I'm gonna say half a million.
You're pretty close, dought. Itwas four hundred thousand dollars. Wow,
it was three over three times.What I thought was why because I wasn't
(37:23):
tracking it well and you didn't realizetoo that you had probably what it was
that you were getting from those kindsof things already. Right, Yeah,
I mean, you know I'd spenttwenty five thousand dollars on a mastermind that
I really didn't get twenty five thousanddollars of value from it exactly. And
(37:45):
so but the key here really isthe consciousness required so that these things don't
happen, and that spending register bringsback the consciousness of where the money's going.
You know, whether I'm spending threehundred dollars to eat out or I'm
spending three thousand dollars as it's beingspent, I know what's going on well.
(38:07):
And that goes back to what wewere talking about in the very beginning
with reconciliation, right are you calling? Are you calling your spending register actual
reconciliation or does it go deeper?It goes a little bit deeper. From
the standpoint of when I'm spending money, I'm also asking questions, and that's
the key to changing behavior. I'masking questions like, is this expended You're
(38:30):
taking me toward my goals or awayfrom my goals? Did I get the
level of pleasure that I just paidfor with this purchase? Is this money
in alignment with my values? Whenyou ask questions as you're spending money,
then it's not just the reconciliation,it's an alignment with who you are and
(38:52):
what you're trying to accomplish. Thatsounds like a lot of work. I'm
not the first one to think,Oh, that just sounds like a lot
of time and work. I evenhad to do that with my Amazon purchases.
Ready, right, I've told myself, now, okay, that looks
(39:13):
really cool, and yeah, youcould really use that, but you can't
instantly buy it. You have tolet it sit there and then you come
back and review it and then askthose questions, Right, is this something
that I really need? Is thisreally gonna benefit me? And am I
gonna be able to get pleasure?Or is it just going to go in
the drawer and sit there? Foreverperfect. Odd, that's absolutely the best
(39:37):
way to do it. You waittwenty four hours, you go back to
it and see if you feel thesame way. Now, I'll give you
a funny example. About three yearsago, no, five years ago,
twenty eighteen. I'm looking at mymotorcycle. Now, I'd rather spend gasoline
to put into a motorcycle in acar. I don't like being in a
(40:00):
car. I'm in Los Angeles,the traffic's horrible. I'd rather be on
a motorcycle. But my motorcycle atthe time was twenty four years old.
It had over one hundred thousand mileson it. You read a lot.
Yeah, I use it instead ofa car. And the last time I
(40:22):
took it to the mechanic, hewas saying, you know, it's getting
hard to find the parts for thisthing. I don't know if the next
time something breaks down, I'm goingto be able to find the parts.
So I started looking at a newbike, and I didn't like the new
ones, and so I didn't buyanything. But I realized I should get
(40:42):
a newer one because the next oneI buy is probably going to be my
last one at my age. Well, I started looking again in December,
and I've found a twenty eighteen thatwas for sale that only had two thousand
miles on it five years old.It's got two thousand, and I'm thinking,
(41:05):
well, let me think about it, and I did, and three
months later I actually bought it.That's a long time to think about it.
Yeah, yeah, because I justdidn't want to give up the old
one. I wasn't ready to pullthe trigger. But the point is I
did what you did, Todd.I didn't jump on it instantly, and
three months later it was still availableand I got it. So now,
(41:30):
right right now I have two.I will sell the old one, but
it's raining here in Los Angeles.I'm not there's no point advertising it now.
Who's going to want to see it? And so but at some point
I will. What I'm getting atit. I took the time. I
didn't jump on it. I waited. And the funny thing is I told
(41:53):
you back in twenty eighteen, Iwas looking at a new one. That's
the bike. It's five years later. I bought a twenty eighteen and it
only had a little It actually hadnineteen hundred and fifty five. It was
broken, just waiting for you exactlybut you like it now. Um it
(42:15):
has an automatic transmission. I'm havingto get used to that. Okay,
yeah, change right, That's theother part of this ranting is change.
We have to change habits. Wecan't order in food, you know,
and if we're trying to save moneyor see where our money is going.
(42:36):
You know, that's a big oneI heard you talking about earlier today is
how how many times a week doyou order in food? Right? It's
become so easy for us to do, and it is so expensive. Yes,
and it benefits certain people like mygrandson who's driving door dash and it's
you know, and other people they'respending the money and wasting it and not
(42:58):
even getting the quality of food thatnourishes their body. They're getting it from
you know, McDonald's or Burger Kingor whatever. So we're heading into a
recession. This is what a lotof people say. If we're not already
there, I happen to believe we'rethere. But so how do you How
(43:21):
does the average person who doesn't havea great knowledge about handling money and saving
and that kind of thing, howdo they get through a situation like a
recession? What advice would you givesomeone they obviously have to really evaluate where
the money is going. It's difficult, you know. I'm going to touch
on the three things that Todd mentionedearlier in the show in terms of the
(43:44):
three secrets, and they're the threesecrets of the wealthy. And we've been
talking about attitude, so we're goingto come back to that. We've talked
about the forms people use, thecash flow form and a balance sheet and
stuff like that. Tools, right, those are tools, that's correct.
And then we talked about the thirdthing, which is investments. You know,
where can the money go? Sowe covered the three secrets. I
(44:06):
just want to let people know wedid cover those three secrets. Attitude,
forms, and investments. AFI hasnothing to do with the American Film Institute.
Okay, So getting back to ifit's a recession, if people have
they're paying maybe one hundred two hundreddollars a month for satellite TV, they
(44:30):
may end up having to cut thecord and just stream what they can stream
on the computer. So it's noteasy when you get to a certain standard
of living on what you want togive up. Two car family doesn't say
well we'll get rid of one ofthe cars, but that's what they might
have to do. Or they're livingin a large house maybe they need to
downsize, or a large apartment,maybe they need to downsize. They're hard
(44:53):
things to do, but they areavailable. So that's the answer to what
do you do in a recession ifyour income is going to be impacted.
Yeah, you know, this relationcame to mind because you were talking about
the price of groceries, and Imean it's I've noticed in almost every instance
(45:15):
when I'm buying something now it's costsmore, but you're getting so much less.
Yeah. The manufacturers, Yeah,they said, instead of buying a
twelve ounce package, you're getting aten ounce package, but it's only a
few cents more. It's the pizzasI noticed, right, the pizzas come
(45:37):
in the box right there. Usedto be that big. Another. Well,
it makes you wonder how much moneyit costs the company to downsize all
the manufacturing portion of that. Ithad to cost them money to do that,
So why would they do that.Why wouldn't they just raise the price
a little bit and continue with thesame amounts they were always doing. It
doesn't well, because it's easier tofool the public. Full job. Yeah,
(46:00):
but is it more expensive to foolthe public. I guess it's my
question. Well, in the longrun, no, because yeah, and
the money that they may have tospend to downsize, the packaging and all
the rest of that stuff, they'llmake it up in the volume. So
yeah, I'm not worried about thelarge companies manufacturing the food going out of
(46:23):
business anytime soon. Yeah, it'sthe households that are going to be struggling.
Yeah, absolutely, And the rentincreases, and yeah, and the
rent increases. Find homes now,so you still own a lot of real
estate. Are they single family homesor are they mostly apartment buildings, duplexes,
that kind of thing. Yeah,mostly apartment buildings. I have a
(46:46):
bias against single family homes as realestate investments because it involves the psychological factors
like see what's the paint job?Like what's the flow of the house?
Like who are your name? Howwhat's the landscaping? Like? That's not
what I'm into with an apartment building. The value is based on the rents.
(47:09):
It's just a multiplication factor. It'scalled the gross rent multiplier. If
your rents are one hundred thousand ayear and you're in an area where the
gross rent multiplier is ten. Thatbuilding's worth a million bucks ten times one
hundred thousand. If I increase therents by ten thousand dollars over the year
(47:32):
and I multiply that by ten,I've just increased the value of the building
by one hundred thousand dollars. Now, I will have to admit I'm not
that kind of landlord. My assistantjust came to me and said, you
know, Renny, the utility costson your building have outpaced your rent increases.
(47:53):
Where I used to figure about eightninety to one hundred dollars per unit
for utilities, she showed me it'scurrently two hundred and seventy eight dollars per
unit. And my rent increases wereover the same time period thirty percent.
So my rent has gone up threehundred my utility costs gone up three hundred
(48:16):
percent, and my rents have onlygone up thirty percent. So are you
going to adjust that? Are yougoing to be the night I'm adjusting as
much as my heart is willing.Yeah, it's tough, but you can't.
You can't pay them to live therefor free, right You have to.
(48:37):
You have to be able to cashflow on it where it's not worth
doing exactly, And so I createda long letter. I'm including a spreadsheet
that shows how our utility costs havechanged, and I'm and so, rather
than giving one and two percent rentincreases, it's going to be five percent.
(48:59):
Do you have most of your unitsfilled or are you finding that it's
hard to get renters right now?I operate at one hundred percent occupancy year
in a year out because of thequality of tenants and how I take care
of them, and they appreciate that. And one hundred percent of my tenants
through the entire pandemic paid one hundredpercent of their rent. There was only
(49:22):
one exception, and she applied forthe government program. They reimbursed the shortage
and then she moved. So again, one hundred percent of my tenants I
received one hundred percent of my rentthrough the entire pandemic because I take care
of my tenants. And then hasa lot to be said for as well.
(49:44):
Oh my goodness, but my friends, we only have about five or
six minutes left. Rennie, isthere anything else that we missed? I
think we talked about the three yourthree tools or three secrets of the wealthy,
Three secrets of the Wealthy. Isthere anything else that we missed or
anything else you would like to highlight? Only just to remind people they can
(50:07):
get a free copy of the bookif they make a donation at the top
of the wealth on any income dotcom website to shelter the Soldier. And
if I send you the link forthe go fund me for this family that
we're supporting. Uh, would itbe okay to post that on your Facebook
pace? Than we can put thatinto blog for you. Thank you,
(50:30):
I'll send you. I think wealready have that link. And that's that's
something we really didn't talk about,maybe in the last couple of minutes.
Is the full length on topic.I have a hard time of that word.
I don't know what ye aspects ofwhat it is that you do,
because you know, we talked aboutthe LIBS reciprocity. I'm all, but
(51:00):
but you give one hundred percent ofthe profits, not the income, but
the profits. How does that work? It made me explain to us a
little bit how that works. Well, it's yeah, I'm glad you asked
that because people say, wait asecond, how could you stay in business
if you're giving away one hundred percentof the profits it's simple. Because of
the real estate investments and other investmentsI have personally that generate all the income
(51:25):
I need to live and more,I don't need the income from my business,
so that I can donate one hundredpercent of that to the animal and
veteran charities, the profits. Andthere's a difference between profit because obviously you
would cover the cost of creating thebooks and reacting the book. That's all
covered. It's the excess the profitleft over that you donate exactly. In
(51:50):
other words, I pay the feesto host the website, I pay for
a virtual assistant. Yeah, afterthose costs are covered, I donate all
the cool Well, thank you fordoing that. So this go fund me
then a separate though from the charitythat you typically right, maybe you can
tell us a little bit about thatyou've taken. You've taken a homeless person
(52:14):
under your wing. This is greatleadership by example. Give us a brief,
brief rundown of what it is thatyou're doing and how people can help.
So we've set up a go fundme to help with her housing and
her school costs. Again, she'senrolled in nursing school. Now, she
just got her first paycheck like aweek ago. But she's got a huge
(52:36):
hole to dig out of for themonths where she was struggling and had no
place to live and was doing hotelvouchers and living in and out of a
shelter with her five year old daughter. But now she's getting back on her
feet, but she has a hugehole to dig out of. So so
far, you know, I've givenher my car to use. So she
was driving for door Dash and workingfor FedEx from one in the morning to
(53:00):
five in the morning to try andmake things, try and make ends meet.
So this is a hard working woman. It's twenty five years old on
him, young girl, woman,mother, whatever, And so she's just
a wonderful human being that my wifeand I are helping. So we've set
(53:21):
up this go fundmate page for her, and yes, I'll send that link
to you. Any amount of adonation directly to that is welcome. It
doesn't matter if it's ten dollars,one hundred dollars. It's going to someone
who can use a hand up.This is not a handout. Yeah nice,
Oh, thank you very cool.You can find more information by signing
(53:45):
up for our newsletter or go toToday's show page at www. Lifemaster radio
dot com and all the links thatwe talked about will be right there.
The be on the Facebook page.Check out our you tube channel. All
of the shows that Jackie and Ido end up on YouTube. They end
up on our YouTube channel and youcan share them, review them. There
(54:08):
are many of them. There's awhole plethora of our past shows up there
with great thoughts and ideas that willinterest you. Rennie, thank you so
much for showing up as you todayand sharing your great thoughts and ideas.
No mistake, my friend. It'sjust really cool you you You've figured it
(54:29):
out, mister, you have figuredit out, and you're sharing it with
us. Thank you, and thankyou for the opportunity to share what I
learned. Yeah. Well, itwas great to have you back, and
it was serendipitous that we ran intoeach other in LA. It's hard to
(54:50):
know how many people you've inspired andhelped today, so I appreciate it.
Oh, thank you, Jackie,Thank you Todd. No mistake again,
my friend. That's about all thetime we have for today. I hope
you enjoyed the show. My biggesthope is that you will tell a friend
about the show. And how coolit is that this Todd and Jackie just
bring on some really cool guests totalk about really cool things that are definitely
(55:13):
going to make a difference in mylife, especially my life mastery journey.
Lastly, please please please make ita great day, because it is all
about choice. Choose to check outyour money and choose to check out our
YouTube channel. Bye bye for now, Oh everybody, and we're done.
(55:39):
Thank you, sir, thank you, thank you, thank you for the
opportunity, and as soon, thankyou for tuning in too Light. Mastery
Radio joined Todd Allen and Jackie Baileyand their guests of leading authors, speakers,
coaches and entrepreneurs weekly at ten amPacific. Learn to live a peaceful
(56:00):
life with intentional mastery through stories andmessages to support your wellbeing and most ebucket
of dreams. Visit their website wwwdot lifemastery radio dot com, join their
mailing list and be notified about upcomingguests. That's lifemastery radio dot com.
Welcome to Life Mastery Radio with ToddAllen and Jackie Bailey, the show that
dives into the science of higher consciousnesswith inspiring topics such as abundance, intention,
help, manifestation, love and transformation. Join Todd, Jackie and their
guests of leading authors, speakers,coaches and entrepreneurs weekly at ten am Pacific.
(00:22):
Learn to live a peaceful life withintentional Mastery. It's all right here
with stories and messages to support yourwell being and most evocative dreams. Now
here's your hosts, Todd and Jackie. Hey, Hey, hey, it's
another groovy day, and most ofyou know that's because I make it that
(00:43):
way. And it's Life Mastery Radio. Dave highlight of my week. I
know Jackie enjoys the two her andI get together and we bring you some
of the best selling authors, topnotch leaders, all on the cutting edge
of their own becoming. But guesswhat, they're there on that edge to
(01:03):
push you off your edge of yourown becoming with great thoughts and ideas for
you to use on your very ownlike mastery journey. As always, I
have my co host with me today, Jackie Bailey. Hi, Jackie,
how are things in the League project. They're going great, and we actually
(01:25):
have a workshop tonight, not somuch for the kiddos, but for the
adultos. We've got I've partnered witha couple of other speakers, Justine Reese
and Benny Mobley, who are expertsin their fields, and we're putting a
workshop together tonight that's called Reinvent Youat any age. So anyone who's maybe
(01:49):
transitioning between careers or looking for workagain after being out of the workforce for
a while, or even retiring andthinking how can I make an impact on
the world, This is going tobe a great workshop for you, maybe
even someone who's looking for a sidehustle. And Justine Reese is a voiceover
talent, Benny Mobley is a personaltrainer, so we can get you physically
(02:12):
fit and works on mindset as well. And then of course I can help
you to develop your own unique keynotespeech and have it in your pocket for
opportunities that come. So well,that's tonight at time it's four thirty pm
Pacific, and be happy to putinformation into our Life Mastery radio webs or
(02:34):
Facebook page and everyone can take alook. Ye check out our Facebook page
Life master Radio with Todd and Jackieand Jackie'll put a link up there if
you were interested. You should beinterested. Check it out. Be a
fun time. I think both thosepeople have been our guests, or just
Benny. I don't think Benny.I don't think either one of them have.
(02:55):
Benny Mobile hasn't been on the show. I think, okay, we
gotta get him on the show.Jack I'm going to remind our listeners that
today's show page is at wwwlifemastery radiodot com. You can go there and
any links that we talk about withour guests today, we're talking about something
(03:15):
really cool. Everybody has it,everybody uses it, everybody has the ability
to distribute it, but the ideais to hang on to it. So
I think we will be talking aboutthat. But any links that we talk
about about that with our guests willbe on today's show page. You can
(03:36):
sign up for our newsletter while you'rethere. Jackie produces a newsletter every week.
It highlights who's been on the show, who's coming on the show,
and a blog post about the showthat we just did, so you can
stay formed with all things life Mastery. Both of our books are there.
You can follow the links to Amazon, and am I forgetting anything Jackie?
(04:00):
No, sounds pretty complete. Ithink, Okay, let's get ready for
the really big show. And todayis Jackie's guest, so that means she
has the introduction take your way,Jackie. Well, it was so funny
because a few weeks ago I wasspeaking in Los Angeles at the best uxbo
and I had a booth and I'mstanding there at my booth and I see
(04:23):
this hi walking toward me. Andunlike myself because I usually can't remember people's
names in the moment, but Renniecame right to my mind. I said,
Ready, I don't think he rememberedwho I was at the in the
moment, but it was great tosee him, and I thought, this
is a sign that he needs tocome back on the show. He's got
a message that people need to hear. So it is delightful to have him
(04:46):
back here with you. So letme tell you a little bit about Rennie
Gabriel. He, after two divorcesand a business failure, went from broke
at age fifty to a multi millionaire. And this was after learning three Secrets
of the Wealthy. Despite the factthat he didn't do very well in high
school math, and in fact hefailed I think. But Rennie now donates
(05:11):
one percent of profits from his onlineprograms to a charity that's called Shelter to
Soldier, which trains rescue dogs forwounded military warriors. Yea. And he
feels that ninety percent of the populationhas been taught nothing about handling money effectively,
including CPAs who we pay to helpus with our own money, and
(05:36):
financial advisors. So with Rennie's programs, you learn these three secrets that he's
learned of the wealthy, and youlearn to have others gladly pay off your
debt. Hello, and you learnfive things that keep you broke. Okay,
those are good to know. Sohe Renny is a ted X speaker
(05:58):
and his award winning US selling bookis titled Wealth on Any Income. It's
been translated now into eight languages.So he is really spreading his message out
into the world, and we aredelighted to have him with us today.
Welcome Rennie. Thank thank you,thank you, Jackie. What a beautiful
introduction. Blush. I know,sometimes it's hard to listen to your own
(06:25):
ego being boosted, right, butthen again, you go, hey,
I have accomplished some pretty awesome stuff. I think we all need to be
reminded sometimes absolutely well, you're makingan act in the world. So yeah,
And in the introduction you talked aboutsome of the challenges that are Jackie
(06:47):
talked about some of the challenges thatyou went through. But what is it
about money that I mean, peoplemake it, they spend it. It
seems to run through most people's pansand fingers. And I think I heard
earlier today I was watching some ofyour podcasts. You know, we're really
(07:08):
not taught how to handle it.Maybe expound on that a little bit.
Yeah, I mean it's easy tounderstand it when you look at how education
around important items show up or don'tshow up. And if you look at
the situation, you know, asJackie said, ninety percent of the people
(07:30):
have not been taught how to handlemoney effectively, powerfully, even adequately.
And the reason for that is ifyou look at what a parents teach in
the home, well, parents can'tteach what they don't know. If they
learn by trial and error, Imean, that's the best they can do.
If you look at the school system, they don't teach anything about financial
(07:50):
education. I was reading that recently. As recently as like last year,
eleven states in the United States,we have fifty five zero so far.
Eleven of them are now requiring somelevel of financial education before you graduate high
(08:11):
school. Well, now, Idon't know what it includes, but I
doubt that it's adequate. It's probablyhow to balance a checkbook. Right,
No one uses anymore. There wasn'teven in that requirement. I mean,
it's it's a piece of plastic.But but you still got to understand reconciliation,
(08:35):
right, Renny. I mean,you got you because it's like having
a bucket of water, and ifthat bucket has holes in it, you
don't really know where your money's goingexactly. But Todd, here's the difficulty.
When I had a checking account,I don't know, I was probably
about thirty years of age, andI realized I'd never reconciled it and I
(09:00):
wanted to know how to do it. So I went to the bank and
asked an employee at the bank.I don't know it was the teller or
the new accounts person. I said, you know, I get these statements
from the bank every month, andit says to balance my checking account follow
these instructions. I tried to doit. But I couldn't figure it out.
(09:22):
Remember I failed high school math.And the woman at the bank,
the employee whose job it was tohelp people with their finances, said,
oh, I'd like to help you, but I also don't know how to
do it. Oh wow, Soyou're going to the bank that provides this
(09:43):
stuff. Those employees don't know how. You turn to certified financial planners.
It's not taught as a part oftheir education. You go to certified public
accountants, it's not in their programeither. So you talk about balancing a
checkbook. Wo, even if youdo it today, hardly, I don't.
(10:03):
I have one tenant out of twentyseven families that writes a check to
pay their rent. No one's evendoing that anymore. Yeah, I think
go online. You know. Itjust reminds me of what's going on today,
because we just had a huge bankin California, h two of them.
Oh well, two banks in Californiafailed and none of the none of
(10:26):
the staff, none of the staffhad any banking experience, yet they were
they were in control of billions andbillions of dollars. How does that happen?
I mean, that's and that justgoes to show you you know our
mentality in today's society. Yeah,it's pervasive. So anyone who feels guilty
(10:48):
that they don't know how to doa budget, or don't know how to
complete a balance sheet, or don'tknow what to do for a cash flow
statement should not feel guilty because youdon't learn this by osmosis. It doesn't
happen that way. And it tookme years of searching to find the solutions.
And when I did and I startedteaching it, I realized the same
(11:13):
questions came up over and over andover again, which is why I wrote
the book. I'm laughing now asI thought about the process. I've been
doing workshops for ten years, teachingpeople these basic foundational skills, and I
said, you know what, I'mgoing to write a book. I'm going
to put all the questions I've beenasked in the book. I'll have all
(11:35):
the answers, and then people won'thave to come to the workshops anymore.
They won't have to bother me withtheir questions. I was so naive,
because that is not how books work. People have to buy them and read
them, right, well, yes, and then the people who read them
want more and they go to theauthor to say, oh I love what
(11:56):
you had to say. Teach memore, and it's like, no,
that's not why I wrote it.Yeah, it's all in there. That's
funny. Well, well what isthat? So you have a three step
process, and I think we alreadytalked about it, but let's just highlight
a little bit because I think thefirst step, or the first part of
(12:16):
that process is awareness, right,I mean becoming where is the money going?
Well, yeah, that's actually thesecond step. Oh yeah, but
you're right. The first step isawareness. I call it mindset. I
call it attitude because when I lookedat it and I wrote a second book,
Attitudes of the Wealthy, and ithas like thirty two ways that wealthy
(12:39):
people think and act. It's theirattitudes ordinary people don't understand or aren't even
aware of. And you know,I guess if I were able to institute
all thirty two, i'd be abillionaire instead of a millionaire. But the
point is, it's attitude. Andthat's the first of the three steps,
(13:01):
is attitude. And I'll give yousome examples. One of the things is
that CPA's other financial gurus tell peoplethey should pay off debt before they begin
to invest right, And as faras I can see, that is the
(13:22):
absolute worst possible advice anyone could begiven. Yes, they need to know
how not to create more debt.But the point is if they focus on
paying off debt, they're on aroller coaster where they're paying off the debt
because that's their focus. Something goeswrong, the car breaks down, a
water, heat or bursts, andthen they have to go back to the
credit card again, and they're onthis roller coaster or paying off debt.
(13:46):
It comes back, paying off debt, It comes back, and they get
to age sixty, sixty five,seventy, and now they've paid off their
debt, but they have nothing else. So Todd, let me ask you
a question. You're ready, Toddto be put on the spot. I'm
ready, Okay, all right.So let's say you have no debt.
(14:11):
You have no car loans, youhave no mortgages, you have no credit
card debts, you don't have nodebt anywhere. Now that's all I'm saying,
is your situation that you have nodebt, would you be able to
stop working and would you have financialfreedom? No, I'd have to have
some income. There has to besome stream of income. In order to
(14:35):
pay the light bill. Yeah,or what if you wanted to eat and
buy food? So you're absolutely right. Without the income, you still have
to work. So either you're workingor you have your money working for you.
And the only way that can happenis that as you're earning money,
you're setting it aside to create anincome that will pay you later. And
(14:58):
if you take that money, I'llgive you the best example for me.
I'm age fifty, I'm broke,but I'm at least earning a living.
I'm earning five thousand dollars a month, and so what did I do?
I used a concept that's five thousandyears old, another concept the wealthy or
aware of another attitude that's crucial.I treated myself like I deserve to own
(15:22):
some of this money I'm earning,and I set aside ten percent. So
even if I was short in payingmy bills, I still set aside five
hundred dollars a month. Now withinthree years, okay, I'm aged fifty
three, I've got a whopping eighteenthousand dollars, but I'm married for the
(15:48):
third time. My best, mostwonderful, fantastic have her till I die.
Wife, we've been together twenty fiveyears now. Anyway translations, she
knows this realtor and he says,Rennie, there's this triplex for sale.
It's a fabulous investment. You oughtto get it. I'm sorry, I'm
in Los Angeles. Eighteen thousand dollarsdoes not buy any real estate. So
(16:14):
my wife says, well, hesays, this is such a good deal.
I'll come up with eighteen thousand dollars. Well, now we have half
the down payment. The realtor says, this is such a good deal.
I'll come up with thirty six thousand. The three of us will buy it
together, which is what we did. Now. Had I taken that eighteen
thousand dollars and pay off the creditcard debt from when I was broke at
(16:37):
age fifty, I would not havehad the money to invest in this three
unit property. Well, within fiveyears, my eighteen thousand dollars was worth
one hundred and twenty five thousand.And what I saw is here's another attitude
of the wealthy. They use debtto create wealth. I borrowed more money
(17:03):
to make down payments on apartment buildingswith my wife and the realtor, and
within five years we had forty sevenmore units. Wow. So I went
from broke five years earlier except formy eighteen thousand dollars to now having fifty
(17:23):
apartment units with my wife and thisrealtor and having the level of income.
Or if I chose to work orI chose not to work, I had
a choice. So what I'm gettingat is I used that money to create
wealth, not payoff debt. Rightmade You made the money working for it.
(17:45):
So I guess my question. Somethingmy dad always told me is you
can never go wrong with real estate. If you hold on to it long
enough, you can never go wrong. Is that your number one go to
I would say you can go wrong. You can buy in the wrong area,
You could buy the wrong kind ofreal estate, so you can.
But yeah, if you hold itlong enough, you'll probably be okay.
(18:07):
I mean, there's even a conceptcalled land banking, where you buy raw
land that's in the direction of acity that's growing, and eventually some developer
will buy it from you and you'llhave a profit. So I mean,
there's all sorts of ways of doingreal estate, from many storage facilities to
um apartment buildings to office buildings toDelaware statutory trusts and real estate investment trusts,
(18:34):
and on and on, running outof breath trying to listen all but
keep it simple, right, Ithink that would be your message. Just
keep it simple and and and youknow, look for that good deal.
Yeah, And there are always gooddeals, even in times where it seems
like best deals all right, duringduring during rough times, if you've got
(18:56):
some cash, right that when itis time to look for something, because
that's when the good deals are.If you've got the cat. You're absolutely
right, Todd. And it wasin nineties. Somewhere in the nineties we
had a horrible earthquake in the LosAngeles southern California area, and many apartment
(19:17):
buildings were ruined, and the peoplewho had cash bought those buildings, refurbished
them and had tremendous increases in valuebecause the prices were so depressed due to
the earthquake. So you're right ontrack, Todd. Wow, that's fast.
(19:37):
So you said you said something thatwas curious. You said that this
idea has been around for five thousandyears. Would that be would that be
a little book called the Richest Manin Babylon? Yes, it would be
that little book that translated juniform text. Well shucks. When then you chisel
(20:00):
in stone and tablets, tablets,they discovered the clay tablets. They could
literally trace someone's life. That occurredfive thousand years ago, and it was
like working a twelve step program.The guy got into debt, he fled
the city, decided to come backand make amends and clean up his act.
(20:22):
And that's what it was. Thebasic principle was yourself, like you
matter, keep ten percent of whatyou're earning and that will build your future.
And yes, it's five thousand yearsold. That was the cornerstone of
my creating a multimillion dollar net worth. It's a cool little book and it's
it's still available, and it's it'sreal small and it will it will change
(20:47):
your whole outlook. And so ofRennie's book. Get a hold of Rennie's
book too, because I'm sure itgoes right along that same same thought process.
Absolutely. I talk about that bookin my book, and it was
written about one hundred years ago.So you got to figure two things based
on concepts five thousand years old.It was written a hundred years ago.
(21:10):
It still works, it always will, that's just the way. Well,
Renny if you're taking, if you'regiving yourself ten percent of everything that you
earn, I'm assuming you mean savingit or putting it somewhere into an account
that you don't touch. So arethere different ways to save or should you
(21:30):
invest some of that early on beforeyou start saving it? I mean,
so what do you do with thatten percent? Two things? One of
them is your right. You're settingit aside somewhere where you're going to keep
it and it will be spent onnothing. You're not going to use it
to repair the car or anything else. It is helpful to set aside another
(21:52):
ten percent so you can spend lateron the things you didn't know we're going
to show up. And so,as a rule of thumb, if anyone
lives on eighty percent of what theyearn, it'll all work out. So
ten percent to keep forever, tenpercent to spend later, and eighty percent
to just live on and buy thegroceries and pay the rent and make the
(22:15):
car payments and buy clothing for thechildren and all the rest of that stuff.
So what do you look for then, in a savings program that's going
to give you a good return?Well, taking the consideration my situation of
five hundred dollars a month, there'snot much you can do when all you've
(22:37):
got to invest is five hundred dollars. So what I did was I bought
some individual stocks of companies that Ithought would be around even when I turned
to dust, like General Electric orGeneral Motors, and there were the companies
that make up the Dow Industrial thirty. I figured they're going to be around.
(23:00):
Well, this happened to be whenthe dot com bubble burst and other
people who lost thirty percent of theirportfolios because of their aggressive investing. I'm
ahead by one percent. Okay,it's not what I was shooting for,
(23:22):
but at least still had all themoney right. So when the real estate
opportunity came available, I just soldall the stocks that it turned into be
about my eighteen thousand dollars, andI popped it into the real estate got
it. So it takes a littlebit more than you know, your few
hundred dollars a month. You couldput it into a mutual fund. As
(23:45):
long as it's not something really aggressive. You can put it into a savings
account. You could buy some individualstocks with it of major companies. So
those are some of the things youcould do. Okay, cool. Now,
in first part of your book,you talk about a lot of the
i'll call them the myths, butthere are beliefs that we have about money
(24:07):
that may not necessarily be good beliefto have. Right, So, what
are some of those you'd like tomention today that you know are pretty typical
of people. Well, I thinkthe first one that we've already talked about
is the idea that you have tofocus on paying off debt before you begin
to invest. And, like Isaid, that's the most damaging. Yeah,
okay. A lot of people thinkthe more money they earn, the
(24:33):
more wealth they'll create. But itdoesn't matter if you're overspending just because you're
in more income. And I wentthrough this cycle for decades. I started
off as a school teacher earning sixtyfive hundred dollars per year. Wow.
Yeah, okay, it's not alot of money. So I left teaching
(24:56):
school and went into sales and doublemy income. And when I was teaching,
I was short one hundred dollars amonth. So I figured, oh
my gosh, I've doubled my income. Now a short two hundred dollars a
month, buy more stuff. Right, say that again, Todd, buy
(25:17):
more stuff. Right, The moreyou make, the more stuff I can
buy. You're right, you knowyou're gonna have a better lifestyle. Whatever.
When I passed one hundred thousand ayear of income, now I'm two
thousand dollars a month short. Earningmore money was not the key. Properly
handling what I was earning was thekey. And the first thing I looked
(25:41):
at. Now, this is alittle bit embarrassing, but where I discovered
how to handle the money effectively anddo a budget was in a program called
debtors Anonymous, ally the twelve stepprogram for people who don't know how to
handle money. And that's where Ilearned how to determine what's coming in and
(26:07):
where I'm spending it, and howto properly allocate it. And I not
only wiped out that two thousand dollarsa month shortfall, my income jumped from
one hundred and two thousand to onehundred and fifty thousand. It was like
the universe was saying, Renny,you finally figured out how to handle money.
(26:30):
Here you can have more of it. It. Give some examples of
that. What are some examples ofmaybe not what you found, but you
obviously worked with a lot of people. What is their Shotgunah, when they
discover Wow, look at all thatmoney going out the window. What were
they What were they spending on?What kinds of things are we talking about?
(26:52):
We're not talking about things as muchas the categories. And I'll give
you an example. When I createdthe cash floor form that I have my
clients use, I have a lotof areas where I have little stars that
show the items that don't show upon a monthly basis. You know,
(27:14):
you know what your rent is goingto show up. You know you're buying
food on a regular basis. Butpeople don't plan for things like the registration
fees on their automobile, or thatthe car will break down, or the
property taxes come due twice twice ayear, or maybe they have a life
insurance premium that's annual and there's nomonthly plan to have the money available for
(27:40):
that when it shows up. Andthat's what I saw people. A good
example, I had a legal secretary. She came to me because she had
refinanced her house, paid off allour credit cards, and then a year
later she got the credit card debtagain. So we went through this cash
flow form, and she wasn't settingaside money to buy clothing. She wasn't
(28:04):
setting aside for any repairs on hercar or just maintenance, buying new tires
or whatever it was. And sowhen these expenses came up, she had
to go to her credit card.And she didn't realize about expenses that don't
show up monthly. And I justhad this conversation with the young girl that
(28:27):
we're helping with our go fund me. She said, I'm really good with
my money. I know where itgoes. I plan, I do this,
I do that. Her young daughterwho passed away at age two.
She had no plan to pay forher medications and medicines and things like that
(28:48):
that the little girl needed that shewas buying at the pharmacy. That wasn't
a part of her budget, butshe had to spend the money anyway.
She only looked at what her rentwas, what her food was, what
her car payment was, what hergasoline was, the things that she knew
showed up every month. But shewasn't planning for medications. So people who
(29:17):
even think they're good at it misshuge things. Yeah, so is that
form in your book, then yourcash flow. Yes, it is in
your book, and people can getyour book and then start to take a
look at where those holes are atin their bucket. Absolutely right now something
(29:37):
important because I donate one hundred percentof the profits from my books, from
my programs and things like that tocharity not only Sheltered a Soldier, but
other animal and veteran charities. Ifthey get it from Amazon, a few
cents of profit is created. Butif they get it from my website,
(29:59):
I donate the hire purchase price ofthe book. They could even go because
I have a link to the charityat the top of the homepage. If
they just make a donation of thecost of the book, I'll send the
book out to them for free.Nice so you know, they obviously can't
donate anonymously. I don't know.I don't know who to give the book
(30:21):
to ye, but if they makea donation they let me know that they've
done it, I will send themthe book for free. So as part
of your prosperity plan to also dophilanthropic work, I mean, is that
something that's icy on the cake oris that something that you do at the
same time you're trying to build well, you can do it, and it
(30:41):
doesn't have to be money. WhenI was when I and my children were
young, I didn't have a lotof money to donate to various charities.
But what we did have was time. We would go and work in a
soup kitchen, or we would takeblankets and clothing and deliver them to homeless
shelters. So even though we didn'thave the money, we did other things.
(31:04):
You could work at a food pantry, you could, you know,
volunteer at a school. You couldvolunteer to clean up the beach. There's
all sorts of things you can dobesides the money. But what I found
are the people that are attracted tome are the people who have a desire
to donate or support causes or charitiesthat matter to them. That's called the
(31:30):
law reciprocity. Right, Is thatis that where you're practicing? Is that
where you're you're highlighting? Um,yes, I know I don't use the
term, but yes, but that'sthe idea. But that's what's happening.
I mean, if you look atmy nine step Road to Complete Financial Choice,
which people can get for free,go to my website and give forwards.
(31:51):
Go to wealth on any income dotcom forward slash ted X. They'll
see my ted talk where I talkabout how we've been program to believe it's
better to be poor than to bewealthy. And the cure is the nine
step roadmap, which they can getfor free. In that nine step roadmap,
(32:12):
it says the nine step roadmap tocomplete financial choice and philanthropy. Nice.
So the goal is to get peoplein a financial situation so they can
donate to the causes that touch theirheart. Right, very important, Ranny.
Do you address any situations where oneof the spouses is spending money without
(32:42):
the other spouse knowing it? Andhow I mean? Is there a safe
way to set up accounts? I'mnot I'm not asking for myself. I
was thinking of this recent this recentmurder out of Alabama or something family where
he was obviously addicted to drugs andwas embezzling money from the firm and the
(33:04):
family and the wife I'm assuming hadno idea about it. Now she can't
even testify about it because he murderedher. But I'm just wondering, is
there he addicted of it? Hehasn't, did it? Yes, exactly?
Um? Is there a safe wayto set up some sort of accounting
system with these newly married couples sothat they don't have to they'd be accountable
(33:29):
to each other, I guess,is what I'm saying. Yeah. The
difficulty that I've seen in situations likethat is where one spouse has total responsibility
and the other spouse wants no responsibility, right, And that's how it shows
up because because he was spending Ithink I think I read reports, so
he was spending like sixty thousand dollarsa week on narcotics, which is the
(33:54):
firm. And for your spouse notto realize that that money was just poofing
away, yeah, buggles of money. But then again, it's like you
said, if I don't care whathe's doing with it, you know I
have plenty for me, then whatever, right, right, And that's where
things go wrong. So what Iadvise couples to do is to both be
(34:17):
involved in the process. And Iunderstand how one spouse doesn't want to be.
As an example, my wife doesn'twant to be, but I do
require she at least knows all ofthe accounts we have, knows what the
account balances are, and every oncein a while, maybe a few times
a year, she'll say, doI have enough money in my checking account?
(34:42):
You know that that's about as muchinvolvement as I can get from her.
So I'll say, yes, youdo, let's go over it so
you know. I require that,but I can only go so far.
So she does know. But thepoint is other spouses aren't willing to know.
And if you've got a spouse who'shiding what they're doing, they certainly
(35:07):
don't want the spouse involved, right, right, And that and that leads
that leads to that kind of behavior, right. I mean, if you're
not producing a family P and Lstatement profit loss statement and reviewing it on
like a monthly basis, that justopens a door for nefarious activity. Oh,
(35:27):
absolutely right. And one of thethings that I realized even in our
household, and this is a confessionon my part, I used to use
a little spending register that I wouldprovide to my clients for them to use.
I see your cats stretching in thebackground. The one who messed with
your knobs. He's there every week. It's just amazing. Every every Tuesday
(35:51):
at ten am, that's where youpart. Yeah, and I'm thinking,
oh, do I have ADHD?Can I do anyway, So the spending
register. I have the spending registerwhere I would track all the money that
flows out of my hands, youknow, like into the parking meter,
into the grocery store or whatever.You know. I don't put down the
mortgage payment because that's just once amonth and that's it. But the money
(36:15):
that leaks out I track well.After ten years, I decided I could
stop this practice. I've got ahandle on it. I've got my wealth.
I don't need to track anymore.Then I got involved in a new
business online and I thought, youknow, I got a good feel for
what I'm spending. And I saidto my assistant. She asked me some
(36:37):
questions. I said, yeah,I've probably spent about one hundred and twenty
thousand dollars on my education in thisarea. Says no, Reny, I
think it's much more than that,so that I don't think it is well,
I decided to do the research andsee what I've spent on the various
programs and the masterminds and the coaching. It wasn't one hundred and twenty thousand
(36:59):
dollars. You might have guessed thatI wasn't tracking it in my spending register.
You want you want to take aguess as to what it was.
Oh, that can get pretty spending. I'm gonna say half a million.
You're pretty close, dought. Itwas four hundred thousand dollars. Wow,
it was three over three times.What I thought was why because I wasn't
(37:23):
tracking it well and you didn't realizetoo that you had probably what it was
that you were getting from those kindsof things already. Right, Yeah,
I mean, you know I'd spenttwenty five thousand dollars on a mastermind that
I really didn't get twenty five thousanddollars of value from it exactly. And
(37:45):
so but the key here really isthe consciousness required so that these things don't
happen, and that spending register bringsback the consciousness of where the money's going.
You know, whether I'm spending threehundred dollars to eat out or I'm
spending three thousand dollars as it's beingspent, I know what's going on well.
(38:07):
And that goes back to what wewere talking about in the very beginning
with reconciliation, right are you calling? Are you calling your spending register actual
reconciliation or does it go deeper?It goes a little bit deeper. From
the standpoint of when I'm spending money, I'm also asking questions, and that's
the key to changing behavior. I'masking questions like, is this expended You're
(38:30):
taking me toward my goals or awayfrom my goals? Did I get the
level of pleasure that I just paidfor with this purchase? Is this money
in alignment with my values? Whenyou ask questions as you're spending money,
then it's not just the reconciliation,it's an alignment with who you are and
(38:52):
what you're trying to accomplish. Thatsounds like a lot of work. I'm
not the first one to think,Oh, that just sounds like a lot
of time and work. I evenhad to do that with my Amazon purchases.
Ready, right, I've told myself, now, okay, that looks
(39:13):
really cool, and yeah, youcould really use that, but you can't
instantly buy it. You have tolet it sit there and then you come
back and review it and then askthose questions, Right, is this something
that I really need? Is thisreally gonna benefit me? And am I
gonna be able to get pleasure?Or is it just going to go in
the drawer and sit there? Foreverperfect. Odd, that's absolutely the best
(39:37):
way to do it. You waittwenty four hours, you go back to
it and see if you feel thesame way. Now, I'll give you
a funny example. About three yearsago, no, five years ago,
twenty eighteen. I'm looking at mymotorcycle. Now, I'd rather spend gasoline
to put into a motorcycle in acar. I don't like being in a
(40:00):
car. I'm in Los Angeles,the traffic's horrible. I'd rather be on
a motorcycle. But my motorcycle atthe time was twenty four years old.
It had over one hundred thousand mileson it. You read a lot.
Yeah, I use it instead ofa car. And the last time I
(40:22):
took it to the mechanic, hewas saying, you know, it's getting
hard to find the parts for thisthing. I don't know if the next
time something breaks down, I'm goingto be able to find the parts.
So I started looking at a newbike, and I didn't like the new
ones, and so I didn't buyanything. But I realized I should get
(40:42):
a newer one because the next oneI buy is probably going to be my
last one at my age. Well, I started looking again in December,
and I've found a twenty eighteen thatwas for sale that only had two thousand
miles on it five years old.It's got two thousand, and I'm thinking,
(41:05):
well, let me think about it, and I did, and three
months later I actually bought it.That's a long time to think about it.
Yeah, yeah, because I justdidn't want to give up the old
one. I wasn't ready to pullthe trigger. But the point is I
did what you did, Todd.I didn't jump on it instantly, and
three months later it was still availableand I got it. So now,
(41:30):
right right now I have two.I will sell the old one, but
it's raining here in Los Angeles.I'm not there's no point advertising it now.
Who's going to want to see it? And so but at some point
I will. What I'm getting atit. I took the time. I
didn't jump on it. I waited. And the funny thing is I told
(41:53):
you back in twenty eighteen, Iwas looking at a new one. That's
the bike. It's five years later. I bought a twenty eighteen and it
only had a little It actually hadnineteen hundred and fifty five. It was
broken, just waiting for you exactlybut you like it now. Um it
(42:15):
has an automatic transmission. I'm havingto get used to that. Okay,
yeah, change right, That's theother part of this ranting is change.
We have to change habits. Wecan't order in food, you know,
and if we're trying to save moneyor see where our money is going.
(42:36):
You know, that's a big oneI heard you talking about earlier today is
how how many times a week doyou order in food? Right? It's
become so easy for us to do, and it is so expensive. Yes,
and it benefits certain people like mygrandson who's driving door dash and it's
you know, and other people they'respending the money and wasting it and not
(42:58):
even getting the quality of food thatnourishes their body. They're getting it from
you know, McDonald's or Burger Kingor whatever. So we're heading into a
recession. This is what a lotof people say. If we're not already
there, I happen to believe we'rethere. But so how do you How
(43:21):
does the average person who doesn't havea great knowledge about handling money and saving
and that kind of thing, howdo they get through a situation like a
recession? What advice would you givesomeone they obviously have to really evaluate where
the money is going. It's difficult, you know. I'm going to touch
on the three things that Todd mentionedearlier in the show in terms of the
(43:44):
three secrets, and they're the threesecrets of the wealthy. And we've been
talking about attitude, so we're goingto come back to that. We've talked
about the forms people use, thecash flow form and a balance sheet and
stuff like that. Tools, right, those are tools, that's correct.
And then we talked about the thirdthing, which is investments. You know,
where can the money go? Sowe covered the three secrets. I
(44:06):
just want to let people know wedid cover those three secrets. Attitude,
forms, and investments. AFI hasnothing to do with the American Film Institute.
Okay, So getting back to ifit's a recession, if people have
they're paying maybe one hundred two hundreddollars a month for satellite TV, they
(44:30):
may end up having to cut thecord and just stream what they can stream
on the computer. So it's noteasy when you get to a certain standard
of living on what you want togive up. Two car family doesn't say
well we'll get rid of one ofthe cars, but that's what they might
have to do. Or they're livingin a large house maybe they need to
downsize, or a large apartment,maybe they need to downsize. They're hard
(44:53):
things to do, but they areavailable. So that's the answer to what
do you do in a recession ifyour income is going to be impacted.
Yeah, you know, this relationcame to mind because you were talking about
the price of groceries, and Imean it's I've noticed in almost every instance
(45:15):
when I'm buying something now it's costsmore, but you're getting so much less.
Yeah. The manufacturers, Yeah,they said, instead of buying a
twelve ounce package, you're getting aten ounce package, but it's only a
few cents more. It's the pizzasI noticed, right, the pizzas come
(45:37):
in the box right there. Usedto be that big. Another. Well,
it makes you wonder how much moneyit costs the company to downsize all
the manufacturing portion of that. Ithad to cost them money to do that,
So why would they do that.Why wouldn't they just raise the price
a little bit and continue with thesame amounts they were always doing. It
doesn't well, because it's easier tofool the public. Full job. Yeah,
(46:00):
but is it more expensive to foolthe public. I guess it's my
question. Well, in the longrun, no, because yeah, and
the money that they may have tospend to downsize, the packaging and all
the rest of that stuff, they'llmake it up in the volume. So
yeah, I'm not worried about thelarge companies manufacturing the food going out of
(46:23):
business anytime soon. Yeah, it'sthe households that are going to be struggling.
Yeah, absolutely, And the rentincreases, and yeah, and the
rent increases. Find homes now,so you still own a lot of real
estate. Are they single family homesor are they mostly apartment buildings, duplexes,
that kind of thing. Yeah,mostly apartment buildings. I have a
(46:46):
bias against single family homes as realestate investments because it involves the psychological factors
like see what's the paint job?Like what's the flow of the house?
Like who are your name? Howwhat's the landscaping? Like? That's not
what I'm into with an apartment building. The value is based on the rents.
(47:09):
It's just a multiplication factor. It'scalled the gross rent multiplier. If
your rents are one hundred thousand ayear and you're in an area where the
gross rent multiplier is ten. Thatbuilding's worth a million bucks ten times one
hundred thousand. If I increase therents by ten thousand dollars over the year
(47:32):
and I multiply that by ten,I've just increased the value of the building
by one hundred thousand dollars. Now, I will have to admit I'm not
that kind of landlord. My assistantjust came to me and said, you
know, Renny, the utility costson your building have outpaced your rent increases.
(47:53):
Where I used to figure about eightninety to one hundred dollars per unit
for utilities, she showed me it'scurrently two hundred and seventy eight dollars per
unit. And my rent increases wereover the same time period thirty percent.
So my rent has gone up threehundred my utility costs gone up three hundred
(48:16):
percent, and my rents have onlygone up thirty percent. So are you
going to adjust that? Are yougoing to be the night I'm adjusting as
much as my heart is willing.Yeah, it's tough, but you can't.
You can't pay them to live therefor free, right You have to.
(48:37):
You have to be able to cashflow on it where it's not worth
doing exactly, And so I createda long letter. I'm including a spreadsheet
that shows how our utility costs havechanged, and I'm and so, rather
than giving one and two percent rentincreases, it's going to be five percent.
(48:59):
Do you have most of your unitsfilled or are you finding that it's
hard to get renters right now?I operate at one hundred percent occupancy year
in a year out because of thequality of tenants and how I take care
of them, and they appreciate that. And one hundred percent of my tenants
through the entire pandemic paid one hundredpercent of their rent. There was only
(49:22):
one exception, and she applied forthe government program. They reimbursed the shortage
and then she moved. So again, one hundred percent of my tenants I
received one hundred percent of my rentthrough the entire pandemic because I take care
of my tenants. And then hasa lot to be said for as well.
(49:44):
Oh my goodness, but my friends, we only have about five or
six minutes left. Rennie, isthere anything else that we missed? I
think we talked about the three yourthree tools or three secrets of the wealthy,
Three secrets of the Wealthy. Isthere anything else that we missed or
anything else you would like to highlight? Only just to remind people they can
(50:07):
get a free copy of the bookif they make a donation at the top
of the wealth on any income dotcom website to shelter the Soldier. And
if I send you the link forthe go fund me for this family that
we're supporting. Uh, would itbe okay to post that on your Facebook
pace? Than we can put thatinto blog for you. Thank you,
(50:30):
I'll send you. I think wealready have that link. And that's that's
something we really didn't talk about,maybe in the last couple of minutes.
Is the full length on topic.I have a hard time of that word.
I don't know what ye aspects ofwhat it is that you do,
because you know, we talked aboutthe LIBS reciprocity. I'm all, but
(51:00):
but you give one hundred percent ofthe profits, not the income, but
the profits. How does that work? It made me explain to us a
little bit how that works. Well, it's yeah, I'm glad you asked
that because people say, wait asecond, how could you stay in business
if you're giving away one hundred percentof the profits it's simple. Because of
the real estate investments and other investmentsI have personally that generate all the income
(51:25):
I need to live and more,I don't need the income from my business,
so that I can donate one hundredpercent of that to the animal and
veteran charities, the profits. Andthere's a difference between profit because obviously you
would cover the cost of creating thebooks and reacting the book. That's all
covered. It's the excess the profitleft over that you donate exactly. In
(51:50):
other words, I pay the feesto host the website, I pay for
a virtual assistant. Yeah, afterthose costs are covered, I donate all
the cool Well, thank you fordoing that. So this go fund me
then a separate though from the charitythat you typically right, maybe you can
tell us a little bit about thatyou've taken. You've taken a homeless person
(52:14):
under your wing. This is greatleadership by example. Give us a brief,
brief rundown of what it is thatyou're doing and how people can help.
So we've set up a go fundme to help with her housing and
her school costs. Again, she'senrolled in nursing school. Now, she
just got her first paycheck like aweek ago. But she's got a huge
(52:36):
hole to dig out of for themonths where she was struggling and had no
place to live and was doing hotelvouchers and living in and out of a
shelter with her five year old daughter. But now she's getting back on her
feet, but she has a hugehole to dig out of. So so
far, you know, I've givenher my car to use. So she
was driving for door Dash and workingfor FedEx from one in the morning to
(53:00):
five in the morning to try andmake things, try and make ends meet.
So this is a hard working woman. It's twenty five years old on
him, young girl, woman,mother, whatever, And so she's just
a wonderful human being that my wifeand I are helping. So we've set
(53:21):
up this go fundmate page for her, and yes, I'll send that link
to you. Any amount of adonation directly to that is welcome. It
doesn't matter if it's ten dollars,one hundred dollars. It's going to someone
who can use a hand up.This is not a handout. Yeah nice,
Oh, thank you very cool.You can find more information by signing
(53:45):
up for our newsletter or go toToday's show page at www. Lifemaster radio
dot com and all the links thatwe talked about will be right there.
The be on the Facebook page.Check out our you tube channel. All
of the shows that Jackie and Ido end up on YouTube. They end
up on our YouTube channel and youcan share them, review them. There
(54:08):
are many of them. There's awhole plethora of our past shows up there
with great thoughts and ideas that willinterest you. Rennie, thank you so
much for showing up as you todayand sharing your great thoughts and ideas.
No mistake, my friend. It'sjust really cool you you You've figured it
(54:29):
out, mister, you have figuredit out, and you're sharing it with
us. Thank you, and thankyou for the opportunity to share what I
learned. Yeah. Well, itwas great to have you back, and
it was serendipitous that we ran intoeach other in LA. It's hard to
(54:50):
know how many people you've inspired andhelped today, so I appreciate it.
Oh, thank you, Jackie,Thank you Todd. No mistake again,
my friend. That's about all thetime we have for today. I hope
you enjoyed the show. My biggesthope is that you will tell a friend
about the show. And how coolit is that this Todd and Jackie just
bring on some really cool guests totalk about really cool things that are definitely
(55:13):
going to make a difference in mylife, especially my life mastery journey.
Lastly, please please please make ita great day, because it is all
about choice. Choose to check outyour money and choose to check out our
YouTube channel. Bye bye for now, Oh everybody, and we're done.
(55:39):
Thank you, sir, thank you, thank you, thank you for the
opportunity, and as soon, thankyou for tuning in too Light. Mastery
Radio joined Todd Allen and Jackie Baileyand their guests of leading authors, speakers,
coaches and entrepreneurs weekly at ten amPacific. Learn to live a peaceful
(56:00):
life with intentional mastery through stories andmessages to support your wellbeing and most ebucket
of dreams. Visit their website wwwdot lifemastery radio dot com, join their
mailing list and be notified about upcomingguests. That's lifemastery radio dot com.
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