Traits of Good or Bad Financial Strategy – Episode 460

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[00:01] Welcome to the Prosperity Podcast. Prosperity thinkers, welcome to the podcast. Today, we’re going to be going over traits of a good and bad financial strategy. So I posit that because here’s what I’ve done. I love researching and looking through different threads and different industries. And so one that I’ve been involved with for a number of years is real estate. So Kim, I think you know, I owned an investment company for a number of years. I even owned a real estate brokerage. So I’m very well versed with this. And I read this Twitter thread last week. That just made me think, how can we use this on the podcast? Are you ready for these questions? Yes, how fun. Thank you. Cool. All right. So here’s how

[00:52] it goes. There are good and bad property owners. And we’re going to turn this over into the financial world. So I would love your take on it says, a good property owner looks for ways to continue to invest in the property over time. A bad property owner neglects their investment and doesn’t cut a single check unless absolutely necessary. How does that relate to finance the challenge of deferred maintenance, which is the proper term for properties that do not have investments continued in them. And it is so interesting, you know, in the whole life space, I’ll teach people how to use whole life as their emergency opportunity fund. And then they’ll try to put in as little as possible. And it’s

[01:40] just mind boggling. It is absolutely as ludicrous as buying a piece of real estate and then hoping that you don’t have to contribute to it anymore. So this idea of ongoing investment or ongoing savings using saving as a verb, ongoing contribution is so important monetarily. But it’s also important in our minds like we need ongoing growth in our minds in our bodies, you know, there’s really no such thing as just flatlining or just maintaining. Because if all you do is just maintain a property, it is going to fall into disrepair now not as quickly as one that’s not even maintained. But upgrading is the necessary thing to be looking at. I’m not talking just at a like a cosmetic level, but an upgraded roof so

[02:35] that you could go for example, from like shingles to a metal roof where you have longer substance and roof that’s going to withstand time. You can do the same thing with your finances. Put your money in things that you know are going to work no matter what the economy is doing. Put your money in things that you know is going to work no matter what the government is doing, the stock market is doing your employer is doing right. I mean, the analogy and the connection there is just endless because as human beings, we have adopted a McDonald’s mentality and it is hurting us, not only in our physical selves, but in things like our real estate and our money, where we are trying to get something for

[03:19] nothing. And if you go to the gym and watch people work out, you can tell the ones that are there trying to get something for nothing, and the ones that are there, just maintaining and the ones that are there to grow. And our finances, our real estate, no different. We can choose and we can choose every single day, how to make a difference and continue growth. And you know, even this idea of aging as it relates to finances, but also as it relates to our body. You know, that is an option. We think of it as either a medical disease or as something that absolutely is going to happen like our body’s decline. That doesn’t have to happen. That’s a choice just as much as you continuing to grow your

[04:06] finances, a choice just as much as you continuing to invest in your real estate is a choice. Whoo, that right there was the soundbite. That was so good. And we just covered point one. I’m excited to see what happens on point two of this. What is said is a good property owner sees tenant relationships as partnerships. A bad property owner sees the tenant relationship as an every person for themselves, zero sum game. So let’s talk about that regarding finances. Holy cow. Well, as many of our listeners know, one of my life’s philosophies is when and I really like that third when and so in this example, not only is the owner getting a win by looking at his tenant as a partner, the tenant is getting a win and the building is getting a win.

[05:00] Well, your finances are really no different and your all of your relationships are really no different. So first of all, as we know, money isn’t everything but money affects everything, which means money affects all the relationships in your life. So if you are looking at relationships as it relates to money and tackling it from a partnership standpoint, or that win win win perspective, you’re going to get so much better results because while there may be challenges, you’ll work together to get through those challenges. And this is true if it’s just you and your money, like, okay, you have too much money is a problem, too little money is a problem. Work at learning about your money, learning about yourself so that you can go into things with

[05:42] money as a partnership. And our relationships are just the same, you know, for looking at things, we’re looking at human beings or at things like buildings, in an adversarial way, we’re going to get the results of that adversarial perspective. Whereas if we look at them as an opportunity for win win win, and we know that continued growth is possible, and that continued growth will benefit all parties, then that’s the kind of results that we’re going to get even if there are setbacks that we have to overcome. So good. You know, it’s funny, one for a listener, I didn’t send this to Kim before. And you’re setting this up for the the next steps that are perfect, because you’re working off of principles. And so when a

[06:29] person is only regurgitating information, the sound by ends at that point, but you’re working off of principles. And so that’s the next piece in this thread, which is a good property owners, hires the best vendors, a bad property owner hires the cheapest vendors. How does that work with finance? I love this. Dan Sullivan has a great saying that he just wants to make more money so that he can hire more of the best help. And this is so true in all of our dollars. And it is true when we use our dollars to hire help. And so as an example, I have a friend that has a lot of real estate. And every time he goes to hire a yard guy or you know, local maintenance for whatever it is that he needs done. He brings them in, they make the bid, he makes

[07:18] the decision. And then he goes to the person and says, I’m going to pay you 10% more than your bid. And I want you to do this job like it was for your mother. And it’s an interesting perspective because he gets awesome results. He gets amazing work done. And we can do this with all of our decisions, all of our relationships. And as it relates to money, how we view our money while we’re working with it is so important. I remember a time earlier in my professional career where cash flow was crazy tight, I had investments that were not doing what they were supposed to be doing business had gone through a change as businesses do. And I just felt like everything was stuck. And kiva.org had just come into the world. And so kiva.org was this place

[08:16] where you could donate $25. And it would go to a third world country person that was an entrepreneur that would create amazing things because you can do amazing things $25 in third world countries. And so I donated $25. And it I mean, this was literally a time when I didn’t even really feel like I had that. But it was movement of money. And this is a very specific principle. And that movement of money caused money to move. It caused a shift in my mentality. It caused a shift in my monetary environment. And the things that we were dealing with, none of which I can even remember, all started to shift and the landscape moved in a way that our dollars started to do the good work that they were doing again. And so with our dollars, we are

[09:10] voting. And if we go for the cheapest price every single time, if we go for the lowest bid, we’re voting on a lack of quality, we’re voting on a short term approach. If we choose instead to really look at everything that we’re doing as investments, or as saving, and I love the idea of saving as a verb saving as a noun, because if you invest, that will save you money if you save as a verb that will create investment. So the two while separate and distinct, absolutely have some interplay. And it’s people that we’re talking about people are the assets. And so if we’re paying somebody a little bit more, or we’re offering a higher opportunity, then that gives them a chance to create more value, which then plays itself off down the road in not

[10:09] only the work lasting longer being done better, but everybody feeling like the whole situation is when when when to go back to that. And it’s a vision nearing of a long term result that is going to get you so much better results than any time of any type of short term thinking or any time where we are stuck in not having the long term perspective. You know, the whole life is a marathon, not a sprint approach. It’s true with your money. It’s true with your relationships. It’s true with real estate. It’s true with anything that you view as an investment. And you can get better results by adopting that mindset, which is where it starts first. But then having that play out in what you’re actually doing when you’re hiring people and making

[10:59] decisions. Yeah, you want some really valuable things in there. One the just I was able to picture the friend that you have in the property world willing to pay an extra 10%. And it’s not necessarily the 10% that matters. It’s the prosperous thinking. And then I tied that into Kiva and the movement. And again, if we look at the sum of money of $25, it’s not a sum to most of us that’s going to be life changing. It’s the intention behind it. And so that’s what you’re you’re speaking about is this intention. And that leads to the next point in this Twitter thread, which is I think, perfect for intention. It says a good property owner uses a broker to sell a bad property owner lists the property themselves. How is

[11:55] that of wanting to do everything yourself versus having a partnership, this companionship? How is that different in your financial world? Well, the ability for bringing in an expert in an area that you may have some knowledge, but need that experts time, attention and focus is paramount in the personal financial space. And it is really funny because there is just so much of the do it yourself mentality out there, which is not a bad thing. I love it. You want to go to Lowe’s and Home Depot and learn how to do stuff yourself. That’s valuable until it isn’t. And what I mean by that is, yes, there are some times when gutting through the learning process, and picking things up is super helpful. But the fact is, you can shortcut your

[12:49] learning curve if you bring in experts. And so the hiring of somebody to list a property, it’s not only their expertise, it’s their unique ability, they’re passionate about this work, and you may or may not be. And if they’re not, then go find another one to hire. Well, the same is true in monetary circles. If you want to get good results, and you want to get them quicker, then bring in somebody that’s been there, done that, gone through it has the proper licenses, but most importantly, has the passion, and the time and the intention as well as attention to get the results done. Because you have a unique ability to use another Dan Sullivan term, your innate talents are not in that thing, or you would be

[13:39] doing that thing, and your passion is probably not in that thing, or you would be doing that thing. So when we bring in experts, we shortcut the learning curve, and we get so much better and faster results, because of the passion and the intention and attention that that expert, or that licensed person, or that professional, you know, whatever term you want to use brings to the table. Yeah, you know, this episode is reminding me of one of my favorite candies, which are M&Ms, because we’re talking about movement of money, and the multiplication of talent. So we’ve got the M&M in this right here. It’s been really interesting. What I’ll do is I’ll make sure to put a thread inside of the show notes to this article so

[14:25] people can read. But it’s important to realize that we all have those unique abilities. And you have that expertise, that timeframe. And second is you’ve created this platform for listeners. So for you listening, I applaud you for learning. And then at some point, there’s a time when that learning has to get multiplied. And that’s the movement of reaching out, go to hello at prosperity thinkers.com to get additional movement. And then I would also encourage one of the best ways to learn is to share. So if you like this episode, or the other episodes, you know, hit the share button on your phone and share it with someone else so that they can learn what final pieces do you have? If we take this comparison of that, that

[15:17] property to this financial pace, what can we leave them with again? Well, I’m so glad you asked because the seven principles of prosperity, the sixth is move and the seventh is multiply. And movement and multiplication are results that we can get with our dollars. And they are often not always, but they are often best done in combining life insurance and real estate because those two products work so well together. And the movement of the money back and forth between the two, giving you the multiplier effect, which is $1 doing numerous jobs. I mean, if you pick up a real estate investment property, that’s 6789 jobs right there just by itself. If you pick up a life insurance policy, that too, just by itself, 567 jobs, you put

[16:07] those two properties, those two things together, the real estate property and the life insurance policy, and you’re easily up into the teens like 13, 14, 15, 16, 17 jobs that those two products together are doing with your dollar because of the movement of money. That’s so good. We’ll also put a link to the principles of prosperity so that you can view those. If you have any additional questions, again, go to hello at prosperity thinkers.com. Thank you for listening to the prosperity podcast to take control of your money and have it work for you. Visit us at partners for prosperity.com. If you liked this episode, make sure you subscribe and leave a review.