Do You Talk Like A Poor Person?
Time for a reality check. I hear people all too often repeat the same old phrases that reflect their limiting beliefs that are holding them back from becoming wealthy.
The fact is, you can’t keep following the herd unless you want to become like them. If you want to be in the 1% of financially successful people, you have to start thinking and talking differently. So, let’s talk through the top nine poor people’s sayings and why you should stop repeating them.
1) It’s Cheaper to Do It Myself
Let’s take a step back for a second. What do you do for a living? Do you think that I could step in and do your job to save a few dollars? Would I be as efficient as you? No, of course not. In fact, it would probably end up costing me a huge amount of time, effort, and money to even come close to your level of work.
The same thing applies to your properties. If the property needs repainting, hire a painter. If you need to get a loan sorted, get a mortgage broker to help you. If you want to find the best opportunities to invest, ask a team who does the research, such as mine.
Just because you might end up paying someone $100 an hour to do a job for you, doesn’t mean you’ll save that same amount by DIYing. The same job might take you three times as long to complete it to half the standard they’d have done. All you’ve done is waste your time, create yourself a part time job, and take your focus off actually making money. Your time is more valuable than that.
2) I’ll Just Grab the Info and Cut Them Out
This comes from the same belief that you can save money by DIYing. I’ve seen lots of people do this – they get an expert to help them, they grab the advice and information, and then they cut them out of the process.
It’s not the wisest decision, because if you want to become wealthy, you need trusted, experienced people around you who can advise you, look for opportunities on your behalf, and make sure everything is flowing smoothly for you. Once you cut these people out, they’ll stop sharing their knowledge and advice with you and you’ll be stuck on your own. If you really want to grow your wealth, you’ll keep the right people around you.
3) I’ll Screw Them Down for A Better Deal
There is a saying in wealth creation that the top 1% always pay full price. If you have a poor man’s mentality, it probably doesn’t make sense to you. But the wealthy person looks at the bigger picture.
Think about it…if I was paying you to do something for me, and I screwed you down, and I asked to pay half of what you normally charge, would you want to work for me again? Would you do your best job for me? Would you look out for me? No, of course not. If I didn’t respect or look after you, why would you look after me? The wealthy person knows that they need a team of loyal people looking out for them, and working towards their success, and for that, they are willing to pay full price.
4) My Home Is My Most Valuable Asset
No, it’s not! Real assets generate income. Your home will be a liability till the day you die, even if it’s paid off, because you’ll still be paying for maintenance, rates, and other expenses. Until you buy real assets that produce passive income, you will stay poor, even if you’re mortgage free on your home.
5) Debt is Bad
It’s time to start getting comfortable with debt – it’s not all bad.
Debt that is used to acquire real assets is GOOD debt. Why? Because the interest on your loan (and the expenses associated with the asset) are actually covered by the income the asset brings in. So, debt on an investment property that is covering its expenses, or even generating a passive income, is very good debt indeed!
6) I Only Want Top Dollar Rent
If you’re renting out a property and struggling to get tenants in, chances are your rent is too high. If you’re holding out for the higher possible rent and tenants who are willing to pay it, you’re probably costing yourself more money than its worth.
If your property has a tenant and it’s listed at $10-$20 cheaper per week than comparable properties in the area, your tenant will stay, and if they need to move out, your property will get filled again immediately. Because you offer the best value for money, you won’t experience extended vacancies.
Renting for $20 more per week for a year only comes to an extra $1,040, but if your property is renting for, say, $400 per week, it only takes 3 weeks of vacancy each year to cancel out the extra money you’d have gained from the extra rent. Vacancy is the enemy, not lower rent!
7) Money Won’t Make Me Happy
Poor people like to repeat this one as an excuse that makes them feel comfortable with being poor. But money is necessary for lots of things you need (and want) that are going to improve your level of satisfaction in life. Things like going on holidays, working less, paying for good healthcare, giving money to charity, and all of those things need money. Would not having to stress about how you’re going to pay the next bill make you happy? You bet!
I’m not saying you have to aim for crazy rich, but get comfortable with being wealthier than you are now, because you do need more money, especially if you plan to retire on your current income.
You also need to start thinking about the worst-case scenario. You need a contingency fund. You need more money so that you can set some aside in case there is a fire in your home, you get a debilitating sickness, or some other problem that you couldn’t have foreseen.
8) Money’s the Root of All Evil
Money can be used for good or evil. Money itself is not evil. Money simply amplifies what a person already is. If you’re evil and you get more money, you’ll probably do bad things with it. But if you’re good and you get more money, you’ll be able to do more good things with it. Good people use their money to support others who need it, donate to charities, help educate their kids (and other people around the world), and bring about more good in the world. If you’re not evil, then money isn’t going to make you evil.
9) Rent Money Is Dead Money
This is an interesting one. A lot of people use this excuse to buy their own home instead of continuing to rent. But if you actually think about it, the interest on your home loan is actually dead money – it doesn’t go anywhere! So, you might be better off renting your own home and buying investment properties elsewhere (in locations that are positioned to boom). Then at least you can claim the “dead money” that is interest on your investment properties as an expense on your tax return.
So, please make sure you’re not saying any of these expressions. They’re holding you back. Remember, you have to think like the minority, the 1%. And that includes talking like them too.
Daimien J Patterson
Daimien Patterson is the CEO of Integrity Investment Properties, a property investment company based in Australia. He regularly produces books, blogs, and videos on the topic of property investing. Head to [integrityinvestmentproperties.com.au] for your free copy of Daimien’s book, Safe as Houses.