Professional Documents
Culture Documents
Keith Weinhold
Copyright © 2017 by Get Rich Education, LLC
ISBN: 978-1521461983
Table Of Contents
Introduction: Why Read This? 5
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Introduction: Why read this?
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7 Money Myths That Are Killing Your Wealth Potential
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If it’s alright with you, I’d ask like to ask you two
personal questions in an innocuous way about your
parents’ iteration of scarce beliefs:
“How did that work out for their wealth?” and “How is
it working out for yours?”
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But yet that’s exactly what nearly everyone goes out and
does—they live a small life replete with small amounts
of free time, small travels, small impacts on others,
small money, small flexibility to create fulfillment,
all of which is reinforced with a commensurately
small ambition.
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“You are the average of the five people you spend the
most time with.”—Jim Rohn
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Fear
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Myth #1: Live below your means
Truth: Expand your means
I’m not telling you to live above your means either, but
rather to focus on expansion.
Pay attention to how high you set the bar for yourself.
Okay, this will be fun. Let’s look at some examples
of living below your means versus expanding
your means:
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Spend 1 hour...
Below:...mowing your own grass when the
neighbor’s kid would do it for $30.
Expand:...in research to find your next income-
producing property.
Spend the next three years…
Below:...staying at home so that you could
save money and hope you’ll live better
“someday”.
Expand:...on ten memorable family vacations
and five seminar trips, paid from your
income properties.
Spend the next ten years…
Below:...working overtime because your idea of
income production is trading time for
dollars over and-over-and-over.
Expand:...having both the time and money to
attend your daughter’s piano lessons and
ice skating exhibitions.
Spend 30 years…
Below:...commuting to work. You sell your time
for money at a work-a-day job that you
might not even like.
Expand:...enjoying durable passive income
streams. Use your extra time to find
fulfillment or create memories with
loved ones.
Spend 40 years…
Below:...being a landlord. Every tenant has your
phone number.
Expand:...checking on your income properties
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That’s why most people die around age 25. It’s just that
they’re not buried until age 85.
about the death. It’s about the fact that the deceased
person was afraid to fully live while they were alive.
They lived a life based in fear. They spent their life with
their head down, grinding at a soulless job, settling for
less, and living life below their means. They never even
tried to create the time to discover what fulfilled them.
For your own kids, would you rather that they learn to
live below their means, or expand their means? Do you
want to produce children so that they can live below
their means? No. No one really does.
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Myth #2: Get your money to
work for you
Truth: Get other people’s money (OPM) to
work for you
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Myth #3: Be debt-free
Truth: Be financially-free
Bad Debt
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Good Debt
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In fact, I have the ability to pay off our home right now,
but I won’t. That would be one of the more reckless
financial decisions that I could make!
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Let’s say I would want to undo what I’ve done and pay
off our home. Let’s look at how that would hurt us.
“It ain’t what you don’t know that gets you into
trouble. It’s what you know for sure that just ain’t
so.”—Mark Twain
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Those people are hoping for a pile of cash near the end
of their life. That’s speculating.
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That’s freedom.
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Myth #4: Compound interest can
make you wealthy
Truth: Leverage can make you wealthy
Well then, why doesn’t that 10% return from the S&P
translate into your return?
Since real estate is less liquid than stocks, you see, there
is no “panic selling” in this investment. Real estate
investors are hedged against emotional losses.
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Leverage
If you just understood this for the first time, you are
now experiencing a light bulb moment. It’s the same
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Return On Investment
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Yes, really.
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Myth #5: Millionaires have
got it made
Truth: Millionaires are not financially wealthy
Why not enjoy the fruits of your labor while the fruit
is still ripe? Enjoy the fruit (your life) while it’s ripe.
Otherwise, what good is the fruit?
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Myth #6: Home equity is a smart,
safe, and sound investment
Truth: The rate of return from home equity is
always zero. It is also unsafe and illiquid
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So even when you “pay off ” your home, it’s not going
to “feel as good” as you think.
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Myth #7: Retirement plans are wise
investment vehicles
Truth: Retirement plans reduce your salary
and ravage your life
Pick one of those two and we’ll hook you up with your
choice right now. Which one is it going to be?
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401(k)s only defer your tax day until later. They don’t
eliminate it.
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But one factor that’s larger than all of those is also one
that you actually exert influence over. It’s your rate of
pay today.
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Conclusion: Your answer to
financial freedom
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Yet at the same time, they’ll buy stocks and they don’t
even know what state the company is located in. That
stock investor often doesn’t understand quarterly
earnings reports, P/E ratios, analyzing intrinsic value,
or the very basics about stock investing.
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Great News
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Additional free resources:
Actionable
Investments
www.GREturnkey.com
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Keith Weinhold:
Founder of GetRichEducation.
com. He is the newest Contributing
Writer at the Rich Dad Advisors
blog. He writes about real estate
investing, finance, and cultivating
an abundance mindset at www.
GetRichEducation.blog.
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