Personal Finance Wisdom You'll Hear No Where Else

http://www.freedommentor.com/personal... - The most valuable personal finance wisdom that you probably will hear no where else.

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personal finance wisdom for real estate
investors and in fact this could be for
anyone but since i'm mostly speak to
real estate investors
it's going to be geared directly towards
you hi I'm Phil pussy ops key with
freedom mentor . com
I'm a full-time real estate investor in
real estate mentor to literally
thousands of people at this point many
of which are among the most successful
real estate investors in their
respective areas and in this video I
want to share with you what I have
discovered about personal finance and
how it can apply directly to your plans
of becoming financially free now
i would guess that you watch this video
or came to discover about anything
related to to my program of my videos
through the process of you trying to
improve your personal financial
situation
all right maybe it's some point you were
researching how to become wealthy how to
make more money how to have a home base
but at some point you were trying to
improve your finances and that's how you
may have stumbled upon me and other
people's videos that talk about real
estate investing now I believe that real
estate investing
if done correctly is the best small
business in America by a landslide
but that's not actually going to cover
here what I want to cover is the
different schools of thought on personal
finance that are out there and then
share with you what I have discovered
from all of this experience as well as
trying to test out and apply what I've
learned from others
ok so when I first got started and i
began the journey of becoming a real
estate investor it all weekend because i
just got a college I was flat broke
I had met several classmates in college
whose parents were so well off
financially
I couldn't believe it because these
people have started broke like me when
they were in need to get out of college
I used to think to myself how the heck
did they get there so i went to this
place that's kind of dinosaur these days
it's called a bookstore but they don't
have that many around these days it back
then there
plenty of them and whether this
bookstore I'm and I wanted into the
personal finance section and even today
if you do so i haven't been to one in a
long long time i'm assuming many of the
same title still exists
this is what I saw on for the most part
I saw a bunch of books written by people
like Dave Ramsey
ironically they Ramses from Nashville
run from on a person named Suze Orman
think that's her name in these people
and in many others as well
wrote books are and they have radio
programs and maybe they even put up here
on television and they talk about
creating a better financial picture for
yourself and they all pretty much have
the same advice and this is what they're
going to say they're going to say things
like set a budget
ok so you need to plan and you're
spending so that a budget is a spending
plan how much is going to go towards
your house
how much is going to go towards the car
how much is going to go toward food and
insurance and and you set a plan and you
stick to that plan and ideally you spend
less than you earn you live below your
means live below your means
meaning you don't spend as much money as
you earn
so you save money you save save save
what do you do with that savings well
assuming you've got a budget worked out
you're now living below your means
you're now finally saving money
this is where they're going to teach you
to invest your money and things like
mutual funds
and so you would you would set up a
retirement account and you would try to
max out your retirement account after
you did that when you set up other
accounts and you invest in mutual funds
and or other sorts of quote investments
and this advice right here has been
around for eons and what I want to talk
to you in this video is where this
advice is wonderful but we're also
breaks down
ok so having a budget absolutely
brilliant
you have to have a budget when you run a
business you should always have a budget
personally
now what I do with my budget is I use a
system called mint.com mint.com and it
will keep track of all of your expenses
and so you can put it in the right
categories of the dave ramsey for
example he teaches that you should never
use a credit card ever
no credit cards whatsoever I'm you
should pay everything with cash
at least I think that's what he used to
teach that anyway
even on anymore on well in today's
society you gotta have credit cards to
buy things online and those sorts of
things you might use your debit card but
i recommend you always been on the
credit card
I just in case there's identity theft so
with credit cards minute does a great
job it keeps track of all the expenses
and you can put them in the right
categories to keep your budget budget
wonderful things are called a spending
plan living below your means
brilliant yes you definitely want to do
that because you want to be a day early
in a dollar long you've probably already
heard the other side of that phrase
which is a day late and a dollar short
so living below your means is wonderful
being able to say that is absolutely
wonderful
I had a mentor of mine once tell me he
says is it if you cannot or will not
save fill the seeds of success are not
in you
hey whoa that's pretty serious saving
money is absolutely incredibly powerful
we'll talk more about that in a moment
I'm betting that yeah there i'd advise
seems to trickle down to invest in
mutual funds
ok we'll we'll talk about the pros and
cons there and then no credit cards and
it's you know it's no debt be completely
debt-free and now i should say in debt
free
ok enter a completely different view of
this entire idea
enter robert kiyosaki you may or may not
have heard of this individual
I have one of his books here in the
office and that's a that's a picture
that's a profile picture of them right
there robert kiyosaki alright so this
guy came along and wrote a book called
rich dad poor dad
that book has sold I maybe you can
google it and check out the number of
sales and it's over 30 million
it's the most successful personal
finance book ever ready
but this guy is quite controversial
because he not completely but for the
most part just bash this entire idea and
he said that this right here was the
soon
way2wealth he said that doing it that
way you
by the time you have enough money so
that your investments your video
whatever you've done asset why's that
you've built up but a time that that's
paying you enough money to to live off
of your retired and your life is
basically wrapping up so he said that
this was the slow way to wealth and so
Kiyosaki's attitude was by assets not
liabilities start businesses start
businesses invest make mistakes
invest
united states his attitude was go out
there in Ingo be and his his theories
really resonated with a lot of people
and what was so interesting about what
he had done here
was he had also become enemy number one
of mutual funds
he was teaching people not to invest in
mutual funds but to go invest in their
own businesses go buy real estate and go
have complete control over your
investments and if you are invest in the
stock market you better know what you're
doing and by individual stocks or or
play the game the way the other
successful stock investors do like more
about it so he came from a completely
different approach and by so doing I
know you inspired a lot of people to go
out there and basically ignore this
advice
well what i've discovered is that it's
not that this guy is right and these
people are wrong or these people are
writing this guy's wrong
it's actually both ok and I'm going to
put this of what we can see that i just
kind of skin
go on both sides here it's both both
have incredible pieces of wisdom that
you can learn from them going to share
with you here in this video and i'll
tell you where it gets all summarized
it's not from these people or from this
guy
I'll tell you the book here it is the
millionaire mind by Thomas J Stanley
this is a signal if you watch them out
of the videos when I refer to signal i
refer to truth that which is not the
noise
this right here is the single greatest
book on personal finance and almost
nobody knows about it
what they know about what they've heard
about is there more popular book called
the millionaire next door
this is an interesting read the the
authors basically did a study of
millionaires and discovered their their
their habits what they spend money on
what they don't spend money on and I do
think this is helpful
I'm certainly this is going to be
helpful in fact a lot of the principles
you learn in here
talk about budgets living below your
means saving money investing wisely
so you say well how can the same author
Thomas J Stanley talk about this but
then all the sudden incorporate this in
this book right here
well that's the that's the magic in this
book what he does is he breaks down the
seven hundred to a thousand people then
he personally met with in these focus
groups and he takes the lessons he
learned from those people that were
millionaires and incorporates into this
book
I either listen to the audio or read
this book so many times I've lost count
because it's the stories of millionaires
in how they got there and one of the
greatest themes in this book is that the
DECA billionaires people 10 million
dollars or more are business owners
so you're million 22 million people tend
to be your 50 to 70 year olds that had
professional jobs and follow this advice
here
your dekha millionaires also followed
some of this advice budgeting live below
your means and saving but they did have
some debt and they didn't invest in
mutual funds they started businesses
they used debt wisely to buy assets and
they did make mistakes along the way but
they learned how to become successful
investors and business people
so what I believe is the best model of
all is is a combination of the two here
and now this is where things get real
interesting
so there is a dichotomy there is
something and conflict at odds here
so from one perspective from a personal
expenditure standpoint buying things for
your personal use
you want to be frugal
so from a personal level you want to be
frugal but from a business level you
want to be aggressive intelligent you
want to be you want to use your brain
and not just blow money but when it
comes to business and investing you want
to be aggressive
so the more money you save the more
money can go into businesses can go into
assets can go in to investigate can go
into making mistakes on some of those
things because the and that creates an
education for you spent the money you
learn what you what you're not supposed
to do
but that makes you smarter it shows you
opportunities other people wouldn't see
what I've discovered for my own my own
life and my own experiences
is that so often too many people are too
scared to spend any money on their on
assets starting businesses investing and
what ends up happening is they stay in
the safe zone which hey their safety in
this but the problem is they never make
the big returns
now that's that is part of this
dichotomy so yeah you want to be frugal
as you could be our personal standpoint
you need to drive the nicest car in the
biggest house in fact owning a home is
usually a bad idea from a financial
standpoint it's almost always better
rent close I just tell you that to rent
a home as opposed to buy it
yes I invest in real estate only real
estate for you know rental prop purposes
are buying and fixing up and selling it
now you make a killing but your own
personal home is going to be a liability
to you all the things that go wrong the
household things you have to fix up
because taxes insurance mortgage
what it's usually cheaper just to rent
nobody likes to rent but I'll tell you
this there's a gentleman on my name of
chuck feeney he was a he was in the duty
free business
at one point it was worth over four
billion and nobody knew it because his
wife was a French citizen living in the
Bahamas his entire businesses and assets
were in her name
so he never paid any of any IRS in the
US taxes
anyways um Jeffy never owned a home he
rented it was
the math it was better to rent ok so
frugal personally that means you're not
blowing money you don't need to look
rich don't need to act rich you just
need to be rich
so one of my great examples of this
would be like Sam Walton who sort of
Walmart
he drove a beat-up pickup truck even
when he hit the billionaire status
so in Forbes descended upon his property
in Arkansas
they found a guy with a beat-up pickup
and they said oh my gosh you're a
billionaire Sam why are you driving a
pickup
he goes why not it gets me to where i
was supposed to go
what am I trying to impress so frugal
personally but business-wise the
intelligent be aggressive
you may have to take on some depth
that's okay because you know if you're
if you're taking on debt to buy a piece
of real estate
well that Real Estate's an asset so in
connection and make sure it cash flow is
positive make sure you have more equity
than you have debt obviously but the
intelligent use of debt can make a huge
difference there's good debt and bad
debt and good debt can make you are
extremely productive financially and bad
debt is a bad thing
so bad dad is going to be you know boat
debt card debt anything like that on all
that stuff out right
all my you know cars but all that stuff
I own it outright because having having
any sort of loan on a depreciating asset
is such a bad idea
I'm now if you do own a home the actual
the interest on your mortgage is tax
deductible so some people leave a little
bit of a mortgage on their on on their
home but yeah
again it's usually better to run all
together so the best thing to do is
probably own your home outright and ok
so what those are all personal rights
will be frugal personally but
business-wise
we want to go out there start businesses
we want to invest
we want to make some money now here's
where this also breaks down
okay great to have a budget great to
live below your means but you know what
in the real world
you can only say so much on car
insurance in that right
I think we have rising gas prices rising
food prices go to the grocery store
these days you drop 30
dollars that fast so the cost to live is
pretty high
and so your job your income may not even
bring you enough so you get ever budget
to live below your means unless you
lived in a house for like a hundred
dollars a month and those Reynolds don't
even exist really
so this entire model breaks down when it
comes to the fundamental concept of
bringing in enough money so you can
actually budget so you can actually live
below your means so you can actually
save
am i right this is a problem
so kiyosaki and others of his attitude
they're at their argument was you start
some businesses
you need to become your own business
person and if we go back to almost the
Bible of personal finance the deck of
billionaires with their own business
owners they had started small they built
their own businesses they give examples
of people that own junk yards that are
worth over 10 million and you know just
all kinds of businesses
so starting a business is a great way to
improve your income but it doesn't
improve right away
usually it takes a while to get the
business up and going
it can take a year it can take two years
just to even get up and going up so it's
making enough money now as you heard me
say that again the video i believe that
creative real estate investing the way
we do anyways at the greatest small
business in America makes incredible
amounts of money gives you great level
of freedom and flexibility and you can
also invest along the right but starting
a business alone isn't the end-all
be-all personal finance because what you
want to have happen is you want your
businesses to bring in the money so you
can throw that back into investing
so you still live frugally you save save
save
and all those and all that money is
poured back into investments
what kind of investments now I'm not
investment advisor as they
I guess they have these different
designations form and you go to
you take these classes and courses and
stuff on that my argument is you want to
invest in assets that you have complete
control over
do you have complete control over a
mutual fund
absolutely not you have no control over
that
now there is some value some people
diversify and the mutual funds and you
may consider doing that
so you've got you've got a few things
like a pie chart around a room here
pie chart you know you got some in real
estate and then you've got some in
precious metals and then you've got some
in a mutual fund and you can do it that
way that's fine because I go back to my
theory on both might as well do both
live frugally investments of mutual
funds but also invested assets that you
completely control
Real Estate's an example your own
business is an example
you know this is a an awesome little
tidbit so Andrew Carnegie on one of the
wealthiest people in American history
at one point he wrote an autobiography
and in that about autobiography he makes
mention of how confused he is by how
many people he knows that are business
owners that take the profits from their
businesses and pour them into other
people's businesses need to save himself
why don't they just we invest the money
back in their own business
that's the one they have the most
control over so if your business has
tremendous amount of opportunity
you may want to reinvest the right back
in your business or invested in my
opinion realistic i think you can watch
other videos as I describe all the power
of being a real estate investor so the
the the wisdom of personal finance and
sharing here is that it's not dave
ramsey vs kiyosaki you know it's it's
really doing both on a personal level
being very frugal living below your
beans keeping a budget i use mint.com I
think it's absolutely fantastic for that
on
but you know having credit cards in the
real world you need them
you know you should probably know how to
use them um of reasonably responsibly
it's a good idea of credit cards if
you're going to use them intelligently
if you're going to be you know what if
you're going to master personal finance
you need to be able to have the
discipline to have big credit cards with
no balances on and only there in case
you need them to deployment asset and
the more you say the more money you can
throw back into investing and the more
that you have access to
I'll say this the older I get the more I
realize how many people don't have just
a little bit of money they need for the
next opportunity want to jump into and
they're always thinking well all i needs
an investor and maybe you see the show
shark tank they're always asking these
these sharks for for 25,000 50,000 when
they just had that money they would need
to go beggin and give away
thirty percent of the business so the
key here is frugal personally aggressive
business-wise
now if you don't have enough money
coming in to even get to this level of
budgeting live below your means and
saving money you have to make some
changes
now I robert kiyosaki would argue that
the old wisdom of go to college get good
grades get a good job making a good
salary and he has choose that all
together he just bashes that and he
basically says that that's what is poor
dad toddy and uh okay
my attitude if you have a job and
there's a way where you can continue to
learn well in your job and then say save
the rest
fantastic throw back in assets on if if
you're just starting off you're trying
to figure this whole thing out
I definitely think the faster you can
get in the world of business and become
a business owner
understanding how to run a business is a
much more lucrative way down the road
and you know the first couple of years
all the people you know that wouldn't
got safe secure jobs they're going to be
beaten yet but over time this was going
to happen there beat you then boom you
just you knock them out of the park
because you just explode past them other
thing is taxes by the way now if you own
your own businesses and you have assets
and you structure and wisely you can
really reduce your tax liability
people who just have a safe secure job
yet you all pay the most in taxes on
employees attorneys doctors high-income
earners
I mean they just pay the vast majority
in taxes whereby if a lot of your income
is coming from assets then all of a
sudden I'm your your income is not as
taxes is is heavily which I know what
that's like
unfair but it is the way it is right so
if you need more money right now you're
gonna need to figure that out and I
think the best way to make money in life
is to become a business owner to learn
how to make money and business
there's always new business
opportunities out there there's tons of
them
you know if you know how to capitalize
on them you're gonna be a lot wealthier
than those that that stay in a job and
again i want to i want to go back to
this you know the millionaire mind
it proves it you know it talks about the
people that are worth a million or two
million worth of the ones that are with
10 billion more
it's it's the people that own their own
businesses it's just that simple
so your own businesses and you invest
wisely and so in other words we go back
to this
it's both it's both these people's
attitude and they're in their teaching
and it's partly is as well you know he's
got a lot of controversy by the way and
so in some of the stuff i completely
disagree with what he teaches so I
definitely with caution on that side but
that the overall framework of what he
shares is incredibly valuable about
buying assets not liabilities and
starting businesses investing making
those mistakes getting out there get it
done and I really hope that this is
provided you with a level of
understanding on personal finance that
maybe you never had before
I really wish somebody put this video to
get it for me about you know 20 years
ago this has been really helpful
I had to learn a lot of this on my own
and kind of go through that journey on
my own and really discover you know
where people were correct and incorrect
is that I just went on a binge I read
all these personal finance books and on
these kind of things like budgeting link
below your means
this stuff is incredibly valuable it's
what most personal finance books talk
about but very few of them talk about
how the heck do you make the money so
you can actually get to this level well
one of the greatest ways to make money
is to be a business owner and start your
own business
all right well I'm feel pretty a ski
with with freedom and tour.com i'm a
real estate investor and then in mentor
and I didn't talk much about real estate
in this video but i think this is very
important that it applies to just about
anybody who is investing in real estate
and that is you know where you on the
right path or you're on the right plan
and my argument is if you're trying to
get into real estate
that means you're trying to start your
own business that's fantastic it's a
great place to be learning those skills
will help you become a lot more
personally financially sound then that
anybody else you know and that's what
happened for me
all right y'all thanks so much for
watching if you if you like this video
if you any questions comments to
definitely down below here i try to
interact as best I can with my schedule
I'm pretty busy these days but every so
often I get back inside YouTube and i'll
respond to comments those sorts of
things
also if you want to you can check out my
book how to be a real estate investor
it's an Amazon bestseller and really
breaks down if you have interest in real
estate investing it really breaks it
down for you so you can discover exactly
how to do it how the other good guys are
doing it how it actually works in the
real world and thanks so much for
watching y'all happy investing in good
luck
mastering personal finance