Personal Finance Wisdom You’ll Hear No Where Else

 

Personal_Finance_WisdomThe following personal finance wisdom has been accumulated over many years of reading, studying and then applying what other personal financial experts have advised. Chances are, your interest in real estate investing is the result of wanting to improve your financial picture. That was my original reason for looking into real estate. I wanted to be financially free and so I figured mastering my personal finances was an important skill for attaining that goal. Along the way, I made some fascinating discoveries and in this video, you’ll learn what has taken my entire career to understand. I wish someone would have put this video together when I first got started. And if you really like this, feel free to pass this along to friends and family who you think could benefit from the personal finance wisdom.

 

Personal Finance Wisdom for Real Estate Investors

 

In fact this could be for anyone but since I mostly speak to real estate investors it’s going to be geared directly towards you.  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. I would guess that you watch this video or came to discover about anything related to my program or my videos through the process of you trying to improve your personal financial situation. Am I right?

At some point you were researching how to become wealthy, how to make more money, how to have a home based business. At some point you were trying to improve your finances. That’s how you may have stumbled upon me and other people’s videos that talk about real estate investing. I believe that real estate investing if done correctly is the best small business in America by a landslide, but that’s not actually what I’m going to cover here.

 

My Story

 

What I want to cover is the different schools of thoughts 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. When I first got started and I began the journey of becoming a real estate investor, it all began because I just got out of college. I was flat broke. I had met several classmates in college whose parents were so well off financial. I couldn’t believe it, because these people had started broke like me when they were getting out of college. I use to think to myself, “How the heck did it get there?”

 

The Bookstore

 

I went to this place that’s kind of a dinosaur these days, it’s called a book store. They don’t have that many around these days. Back then there was plenty of them. I went to this book store and I wandered into the personal finance section. Even today if you do so, I haven’t been in one in a long, long time, I’m assuming many of the same titles still exist. This is what I saw, for the most part I saw a bunch of books written by people like Dave Ramsey. Ironically Dave Ramsey’s from Nashville, where I’m from. A person named Suze Orman,These people and many others as well wrote books and they have radio programs and maybe they even appear on television, and they talk about creating a better financial picture for yourself. They all pretty much have the same advice.

 

The Advice

 

This is what they’re going to say. They’re going to say things like, “Set a budget.” You need to plan your spending. A budget is a spending plan, how much is going to toward your house, how much is going to go toward the car, how much is going to go toward food and insurance. You set a plan and you stick to that plan. Ideally you spend less than you earn, you 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? 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 in things like mutual funds. You would set up a retirement account and you would try to max out your retirement account. After you did that then you’d set up other accounts and you would invest in mutual funds and/or other sorts of, quote, investments.

This advice right here has been around for eons. What I want to talk to you in this video is where this advice is wonderful, but where it also breaks down. Having a budget, absolutely brilliant. You have to have a budget when you run a business. You should always have a budget personally. What I do with my budgets is I use a system called mint.com. It will keep track of all of your expenses, you can put them in the right categories. Dave Ramsey for example, he teaches that you should never use a credit card ever. No credit cards whatsoever, you should pay everything with cash. At least I think that’s what he … He used to teach that anyways. He may not anymore, I don’t know.

 

Living Below Your Means

 

In today’s society you’ve got to have credits cards to buy things online and those sorts of things. You might use your debit card but I recommend you always put it on a credit card just in case there’s identity theft. With credit cards Mint does a great job, it keeps track of all of the expenses and you can put them in the right categories to keep to your budget. Budget, wonderful thing, or call it a spending plan.

Living below your means, brilliant. Yes, you definitely want to do that, because you want to be a day early and a dollar long. You’ve probably already heard the other side of that phrase, which is, “A day late and a dollar short.” Living below your means is wonderful. Being able to save, that is absolutely wonderful. I had a mentor of mine once tell me, he said, “If you cannot or will not save Phil, the seeds of success are not in you.” I was like “That’s pretty serious.” Saving money is absolutely incredibly powerful. We’ll talk more about that in a moment.

 

Invest in Mutual Funds

 

Their advice seems to trickle down to invest in mutual funds. Okay, we’ll talk about the pros and cons there. Then no credit cards, and it’s no debt, be completely debt free. I should say debt free.

 

Robert Kiyosaki

 

Okay, 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. That’s a picture, that’s a profile picture of him right there, Robert Kiyosaki. This guy came along and wrote a book called, “Rich Dad, Poor Dad.” That book has sold, maybe you can Google it and check the number of sales, it’s over 30 million. It’s the most successful personal finance book ever written. But this guy’s quite controversial because he not completely but for the most part just bashed this entire idea. He said that this right here was the slow way to wealth.

 

Go Big

 

He said that doing it that way by the time you have enough money so that your investments, whatever you’ve done asset-wise that you’ve built up, by the time that that’s paying you enough money to live off of, you’re retired and your life is basically wrapping up. He said that this was the slow way to wealth. Kiyosaki’s attitude was buy assets not liabilities, start businesses, invest and make mistakes. His attitude was, “Go out there and go big.”

His theories really resonated with a lot of people. What was so interesting about what he had done here was he had also become enemy number 1 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. If you are going to invest in the stock market you better know what you’re doing and buy individual stocks or play the game the way the other successful stock investors do, like Warren Buffet. He came from a completely different approach and by so doing I know he inspired a lot of people to go out there and basically ignore this advice.

What I’ve discovered is that it’s not that this guy is right and these people are wrong, or these people are right and this guy is wrong. It’s actually both. Both have incredible pieces of wisdom that you can learn from.

 

The Millionaire Mind, by Thomas J Stanley

 

This is signal. When I refer to signal I refer to truth, that which is not the noise.

 

What they’ve known for is their more popular book called The Millionaire Next Door. This is an interesting read. The authors basically did a study of millionaires and discovered their habits, what they spend money on, what they don’t spend money on. I do think this is helpful, in fact a lot of the principles you learn in here talk about budgets, living below your means, saving money, investing wisely.

 

The Millionaire Next Door

 

You say, “How can the same author, Thomas J Stanley, talk about this but then all of a sudden incorporate it in this book right here?” That’s the magic. In this book what he does is he breaks down the 700 to 1000 people that he personally met with in these focus groups and he takes the lessons he learned from those people that were millionaires and he incorporates it into this book. I’ve either listened to the audio or read this book so many times I’ve lost count, because it’s the stories of millionaires and how they got there.

 

Deca-Millionaires

 

One of the greatest themes in this book is that the deca-millionaires, people $10 million or more, are business owners.Your million to 2 million people tend to be your 50 to 70 year olds that had professional jobs.

 

Deca-millionaires also followed some of this advice:

  • budgeting
  • living below your means
  • saving
  • have some debt
  • didn’t invest in mutual funds
  • They started businesses
  • They used debt wisely to buy assets
  • did make mistakes along the way but they learned how to become successful investors and business people.

What I believe is the best model of all is a combination of the 2 here. This is where things get real interesting, there is a dichotomy. There is something in conflict, at odds here.

 

From a personal level, buying things for your personal use, you want to be frugal.

 

From a business level you want to be aggressive.

 

  • The more money you save, the more money can go into businesses, can go into assets, can go into investing and can go into making mistakes on some of those things.
  • That creates an education for you, you spent the money you learned what you’re not supposed to do, but that makes you smarter and shows you opportunities that other people wouldn’t see.
  • What I’ve discovered from my own life and my own experiences is that so often too many people are too scared to spend any money on assets, starting businesses, investing, and what ends up happening is they stay in the safe zone, which, there’s safety in this, but the problem is they never make the big returns.

 

Renting

 

Now that is part of this dichotomy. Yeah, you want to be frugal as you could be on a personal standpoint. You don’t need to drive the nicest car, have the biggest house. In fact owning a home is usually a bad idea from a financial standpoint. It’s almost always better to rent. Did I just tell you that? To rent a home as opposed to buy it? Yes. I invest in real estate, owning real estate of rental purposes or buying and fixing up and selling, you make a killing. But your own personal home is going to be a liability to you. All the things that go wrong in the house, all the things you have to fix up, that cost taxes, insurance mortgage, it’s usually cheaper just to rent.

 

Chuck Finney

 

Nobody likes to rent but I’ll tell you this, there’s a gentleman by the name of Chuck Finney. He was in the duty free business. At one point he was working over 4 billion and nobody knew it because his wife was a French citizen living in the Bahamas and his entire businesses and assets were in her name so he never paid any IRS, any US taxes. Anyways, Chuck Finney never owned a home, he rented. He looked at the math, it was better to rent.

 

Sam Walton

 

Frugal personally, that means you’re not blowing money, you don’t need to look rich, you don’t need to act rich, you just need to be rich. One of my great examples of this would be Sam Walton, who started Walmart. He drove a beat up pick up truck even when he hit the billionaire status. When Forbes descended upon his property in Arkansas they found a guy with a beat up pick up. They said, “Oh my gosh, you’re a billionaire Sam, why are you driving a pick up?” He does, “Why not? It gets me to where I’m supposed to go. Who am I trying to impress?”

 

Frugal Personally, But Business-wise Be Intelligent and Be Aggressive

 

You may have to take on some debt, that’s okay because if you’re taking on debt to buy a piece of real estate that real estate’s an asset.

  • Make sure cash flow’s positive
  • Make sure you have more equity than you have debt obviously, but the intelligent use of debt can make a huge difference.

 

There is good debt and bad debt.

 

  • Good debt can make you extremely productive financially.
  • Bad debt is a bad thing. Bad debt is going to be boat debt, car debt, anything like that.
  • I own all that stuff outright. All my cars, boat, all that stuff I own it outright because having any sort of loan on a depreciating asset is such a bad idea.

 

Mortgage

 

If you do own a home the interest on your mortgage is tax deductible so some people leave a little bit of a mortgage on their home but again it’s usually better to rent altogether. The best thing to do is probably own your home outright. Those are all personal, right? We want to be frugal personally. Business-wise, we want to go out there, start businesses. We want to invest and 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 save so much on car insurance, ain’t that right? I mean we have rising gas prices, rising food prices. You go to the grocery these days, you drop $300 that fast. The cost to live is pretty high. Your job, your income may not even bring you enough so you can ever budget to live below your means, unless you lived in a house for $100 a month and those don’t even exist really. 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.

 

The Problem with Owning Your Own Business

 

This is a problem. Kiyosaki and others of his attitude their argument was you need to go start some business. You need to become your own business person. If we go back to almost the bible of personal finance, the deca-millionaires were their own business owners. They have started small, they built their own businesses. They give examples of people that own junkyards that are worth over $10 million, all kinds of businesses.

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 2 years just to even get it up and going so it’s making enough money.

Creative Real Estate Investing

 

As you heard me say at the beginning of the video, I believe that creative real estate investing, the way we do it anyways, is the greatest small business in America. Makes incredible amounts of money. It gives you a great level of freedom and flexibility and you can also invest along the way.

But starting a business alone isn’t the end-all-be-all of 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. You still live frugally, you save, save, save, and all that money is poured back into investments.

 

What Kind of Investments?

 

I’m not an investment advisor as they have these different designations for them and 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 into mutual funds and you may consider doing that.

 

Pie Chart

 

You’ve got to think of it like a Pie chart, you’ve got some in real estate and then you’ve got some in precious metals and then you’ve got some in a mutual fund. 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, invest in some mutual funds, but also invest in assets that you completely control. Real estate’s an example. Your own business is an example.

 

This is an awesome little tidbit:

Andrew Carnegie, one of the wealthiest people in American history, at one point he wrote an autobiography. In that autobiography he makes mention of how confused he is by how may people he knows that are business owners that take the profits from their business and pour them into other people’s businesses. He used to say to himself, “Why don’t they just reinvest the money back into their own business? That’s the one they have the most control over. If your business has tremendous amounts of opportunity, you may want to reinvest it right back in your business, or invest it in my opinion in real estate. I think, and you can watch other videos, as I describe all the power of being a real estate investor.

 

The Key is Both

 

The wisdom of personal finance that I’m sharing here is that it’s not Dave Ramsey versus Kiyosaki, it’s really doing both. On a personal level being very frugal, living below your means, keeping a budget, I use mint.com, I think it’s absolutely fantastic for that. But you know what? Having credit cards, in the real world you’re going to need them. You know what, you should probably know how to use them reasonably, responsibly. It’s a good idea to have credit cards if you’re going to use them intelligently. 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 them, and only there in case you need them to deploy them on an asset.

 

The more you save the more money you can throw back into investing

 

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 the little bit of money they need for the next opportunity they want jump into. They’re always thinking, “All I need is an investor.” Maybe you’ve seen the show Shark Tank, they’re always asking these sharks for 25,000 or 50,000. Man, if they just had that money they wouldn’t need to go begging and give away 30% of their business.

 

The key here is frugal personally, aggressive business-wise

 

If you don’t have enough money coming in to even get to this level of budgeting, living below your needs and saving money, then you have to make some changes. Robert Kiyosaki would argue that the old wisdom of go to college, get good grades, get a good job, make a good salary, he eschews that altogether. He just bashes that. He basically says that that’s what his poor dad taught him.

My attitude, if you have a job and there’s a way where you can continue to earn well in your job and then save, save, save the rest. Fantastic, throw it back into assets. If you’re just starting off and you’re trying to figure this whole thing out, I definitely think the faster you can get into the world of business and become a business owner, understanding how to run a business is a much more lucrative way down the road. The first couple of years, all the people you know that went and got safe, secure jobs, they’re going to be beating you. But over time this is what’s going to happen, they’re beating you and then boom, you knock them out of the park because you explode past them.

 

Taxes

 

Another thing is taxes by the way. If you own your own business and you have assets and you structure them wisely, you can really reduce your tax liability.

People who just have a safe, secure job, you all pay the most in taxes.

  • Employees
  • attorneys
  • doctors
  • high income earn, they pay the vast majority in taxes.

Whereby if a lot of your income is coming from assets, then all of a sudden your income is not taxed as heavily. Which I know that’s unfair, but it is the way it is.

 

Business Owners

 

If you need more money right now, you’re going to need to figure that out. I think the best way to make money in life is to become a business owner, to learn how to make money in business. There’s always new business opportunities out there. There’s tons of them. If you know how to capitalize on them you’re going to be a lot wealthier than those that stay in a job. Again I want to go back to this, The Millionaire Mind, it proves it. It talks about the people that are worth a or 2 million,  the ones that are worth 10 million or more. It’s the people that own their own businesses. It’s just that simple.

You own your own businesses and you invest wisely. In other words we go back to this, it’s both. It’s both these people’s attitude and their teaching, and it’s partly his as well. He’s got a lot of controversy by the way and some of the stuff I completely disagree with what he teaches. Definitely with caution on that side, but the overall framework of what he shares is incredibly valuable, about buying assets, not liabilities and starting business, investing, making those mistakes, getting out there and getting it done.

 

Conclusion

 

I really hope that this has provided you with a level of understanding on personal finance that maybe you’ve never had before. I really wish somebody had put this video together for me about 20 years ago. This would have been really helpful. I had to learn a lot of this on my own and go through that journey on my own and really discover where people were correct and incorrect. Because I went on a binge, I read all these personal finance books. These kind of things like budgeting, living 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 you make the money so you can actually get to this level.

 

Comments

  1. Alan Miltz says:

    I have 30 k to invest and trying to change my life around to get more stable. The problem is every realitor I talk to says 30 k in cash is not enough to get a decent return. Can you help me. I want to get in to Real Estate but I live in LA where Properties is super high and 30k maybe can get me a toilet here. People telling me only to invest locally but I cant in my case. Any advice. I will be a first time buyer and have a full time job for now thats dead end. HELP

    • Phil Pustejovsky says:

      You’ll continue to run into those comments from LA Realtors because they operate in the traditional realm of this business. Take my video course on creative investing to learn how to parlay that $30K into a whole lot more (http://courses.freedommentor.com and use the coupon code “freedommentor” to get free access)

      • Hi Phil, I watched almost all your videos, I do believe everything you say, I really want to follow your steps . My problem is I don’t know how and where because, I don’t have much cash, what I do have is the motivation. Please let me know how you can help me, for some reasons I do have faith on your program.

        • Phil Pustejovsky says:

          Sounds like you’re starting on a shoestring. Check out this video: Getting Started on a Shoestring

          • steeve chery says:

            Hi,nancy you just gave yourself the solution to your problem and you dont even realize it. FAITH. Without faith you,cant do anything, have faith in God that he won’t let you fall, faith in yourself knowing that your more then a CONQUEROR and faith in this program. When you start there. Millions will start to flow. Be blessed

      • i was talking to a friend and he told me to open a llc is that a good way to go while learning real estate? i watch all your videos and im just starting to do investments on my own

    • Mike L. says:

      Hi Alan, my advice (and I’m by no means a real estate or investment expert) is to buy your first home. There are so many benefits…interest is tax deductible, equity you keep and can borrow against, long-term appreciation, a place to call your own, etc. I don’t really understand Phil when he says that renting is better…I lost him there and would be interested in knowing why he thinks this. There are special programs for first-time homebuyers like lower down payment requirement, and perhaps a lower interest rate. Even if the place is not really what you’re looking for, it’s a good idea to start building equity. If you shop around, you might get a good bargain, like a short-sale or foreclosure…I hope this helps… Mike L., Carmel, NY

      • Phil Pustejovsky says:

        Tons of reasons why buying a home usually becomes more of a liability than a benefit. The BIGGEST exception is if you can buy a home with a ton of instant equity. If you can buy a $150,000 for $100,000 then you are walking into equity that you could get a HELOC which could help launch your investing business. But other than that, if you rent, you reduce your total monthly overall expenditure and you don’t get hit with random huge bills such as a bad hot water heater, bad HVAC, etc. Then, you also aren’t tempted to improve the home and spend your weekends at Home Depot and Lowes making “improvements”. AND, perhaps the most important part is that you don’t get stuck in a home you can’t get out of without a short sale or taking a loss. Single Family Homes don’t appreciate as proven by a 100 year study by Shiller. They barely keep pace with inflation. I could go on. But as rentals or flips, they can make you a killing.

        • Robert A says:

          Also quit falling for the tax deduction LIE, remember the govt always tells the truth and ALWAYS passes laws for your best interest 😉 hahahaha. the standard decution is far in excess of what most people would even dream of paying in interest each year on a home and even if you do eclipse tht amount its only the dollar spent above that limit that becomes your first actual deduction against your slave wages.

        • I can understand the view points for both owning or renting the home you choose to live in. Its just a matter of what your goals are at the time. With renting your more into not having your money tied up so it’s ready to be invested in another deal

    • Utilizing hard money lenders will make it seam like you have more money

    • Hello Mr. Pustejovski, I have been there done that working a job for 30 to 40 years and I am now retired for five years living off retirement income. During employement I incorporated both plans that you spoke of on the personal finance wisdom video and using both Robert Kiyosaki’s viewpoints and the traditional way also. Over the years of experience I have realized that there is a need for finances to start a business which sometimes requires the cooperation of others as well as financial institutions. So my questions are where does the financing comes from without making a business loan? There are very few people that are trustworthy when it comes to money, etc. I am still paying a monthly mortgage and recently was forced to trade my paid off vehicle in for a used vehicle. I have no credit card debt but like you mentioned in the video I use it mainly for things that I need to get done which hinders my ability to save. I have just began to listen to your videos as well as read your book and I would like to becomes one of the decamillionaires you were speaking of in video. Where can I start? Help.

  2. Hi Phil, Thanks for taking the words right out of my mouth. I have read all the books mentioned and i agree with you 100%. through the whole video i kept saying to myself thats what im trying to do.Dave Ramsey coarse says to take your money and invest it and get 12% interest and watch it compound LOL. He fails to mention where he gets 12% interest.
    No credit cards? No debt? i wonder if any millionare got where they are and never used a credit card and never had debt. Robert Kiosaki brilliant a little to the extreme though just like you said…… Thanks for the video in my opinion 100% the truth.

  3. Hi Phil good video.Great presentation,like how you explained everything in detail,and the comparison between the writers.

  4. Hi- I always enjoy your videos.
    I am currently in crossroads: I have a question that I think I know the question to, but want to get your input and advice.
    I currently own a business with my brother-
    Cash flow is up and down- anywhere between $300 to $1000 a weekend (we do photo booths) for parties. I am also a personal trainer- and I am a realtor- I am currently involved in 3 flips (I will net about 25-30k in about 4 months from them).
    I save a lot of my money and invest aggressively- my problem is as you can see, lack of focus and commitment and as a result my personal monthly income from ‘working’ varies but on average about 2 to 3k a month. Some of my friends also 29/30 yrs old have focused in one thing and although they do not know how to save- they do make 100 k to 300k a year. What would your advice be for me? I need you to be ruthless, I won’t get hurt 🙂

    • Phil Pustejovsky says:

      Systematize as much as you possibly can so that you can increase cash flow of your existing businesses without more of your time required. If the business can’t be scaled, then you may be in the wrong business. It’s hard to serve two masters. Sounds like you have 4. So perhaps consider doubling down on the businesses that make the most money with the least effort and that have the most scalability potential.

      • Eric Volkers says:

        Phil we have ok money coming in but it goes to my wife’s medical bills so I need to get assets and increase sales and income. Problem is even the mentors who claim to teach real estate are not practicing what they preach I was with this mentor for 6 months studying with her at her home and we never got a deal and I was working hard 4-6 hours a day 4 days a week. She is known in Los Angeles as the wholesale master little to find out she is not doing it. I know people say go out of your area but with millions of people and different price ranges I feel there is enough in my own backyard what can I do how can I find the right mentor? Even at the club here in Beverly Hills I had a mentor who owns the club and he told me about wholesaling and finding out he told me know one is doing it here even though he was teaching a class on it. :0(

        • Phil Pustejovsky says:

          This business is very competitive but if you know more than everyone else, you’ll succeed. Just like any lucrative business, getting into it is the tough part because the successful, already entrenched competitors don’t want you there.

  5. Arturo Rubio says:

    Hey Phil,
    Thanks for your awesome point of view on personal finance. I got to say, I have read my fair share of personal fiance books which some leaned towards the left side and some leaned towards the right side. From my careful readings, I very well agree on what you just have said. Your video was very well put together. I’m glad i’m part of your program.

  6. LoAnn McCray says:

    Phil-You are awesome, I like how you think! Please keep those e-mail videos coming to my e-mail as they keep me invigorated! My plan is to get your progam and start investing in Real Estate in Hays Kansas! Thanks for the encouragement! LoAnn 🙂

  7. Gordon Hayden says:

    I know I am supposed to save and save and save some more but that just isn’t sexy at all. I would rather be the Trump of my neighborhood and only than start saving. For me (on disability) its not a question of saving because there is nothing to save. My whole issue to INCOME. My income needs to improve some 50 fold. Than we’ll consider saving.

  8. Charles Colasante says:

    Phil, Your the best. Read your book. I wish we could hand out and have a drink some day. hey, maybe one day when I get were you are some day. I’m from Connecticut. Be cool as you are. by friend.

    Charles Colasante

  9. Great video Phil. I was just wondering what are some of the things you disagree with Robert Kiyosaki’s philosophy of personal finance. I just finished my first year of college and I am really really into Real Estate and I want to have my own business because I don’t think 9 to 5 is my thing at all. So, if that means I have to quit school to start business, I am willing to do that. I want to know what you think about my idea because I really look up to you and I think you are a great teacher. Any advise would be greatly appreciated.

    • Phil Pustejovsky says:

      Kiyosaki is controversial. Leading that controversy is the confusion over who his real Rich Dad was. He isn’t saying and many have surmised that Rich Dad is not a real person at all. That’s problematic on many levels if there is no such thing as a true rich dad person. Most notably, is the issue of real world truth. The Millionaire Mind is the recount of years of studying real life millionaires and what was discovered. That is Signal. However, Kiyosaki doesn’t have that kind of backbone for his advice which creates openings for noise. In going from broke to where I am today, what Thomas J Stanley would refer to as Balance Sheet Affluent, I can speak with authority on this subject. Kiyosaki has done a wonderful job of communicating to power of becoming a business owner and investor but he is very light on specifics. He’s good as a 101 course on becoming rich. But once you progress to 202 and beyond, you need specific, real world applicable wisdom and that is where his stuff falls short. Oh, and what happened in 2012 was a bit alarming. A court of law determined that he owed Bill Zanker $24M for a business deal they did together. Instead of paying Bill, he bankrupted that LLC and avoided paying him. Some may call that smart business. Maybe so, but what if Kiyosaki legitimately owed that person the money?
      The greatest business people I have been around and studied have all had incredible integrity. Tough but militantly ethical.

  10. stuff Phil. I started with Rich Dad course about 5 years ago looking to get more financial literacy.I have recently purchased a mobile home park, and AM in the process of creating my own ATM machine.have you done any mobile home park investing?

    • Phil Pustejovsky says:

      Well done! One of my former apprentices got into buying those. He spends all his time raising money since commercial lenders will only fund on the land, not the homes and most mobile home park deals include purchasing the land and some of the homes. I’ve done so well with what I do that I haven’t had the need to venture into MHPs. They can be cash cows though so more power to you for acquiring that kind of asset.

  11. K. C. Chin says:

    Hi Phil,
    I am impressed with your ideas, quest and ingenuity in exploring real estate investment. However, some of your personal creative opinion makes you a gem.

  12. Thank you Phil, I wish more people would take the time, and care enough to take time to help.
    JLR from Phx, Az

  13. Positive knowledge is the FULE to success. Thank for the video 🙂

  14. Sherman Peters says:

    Phil, you truly knock this one out the park guy. I could only wonder where you were the moment this inspiration hit you and took a tremendous hold on you. I must commend you for two incredible gifts if not many others, and that is your love for the enjoyment in doing business in real estate and the love you have with a wholly deep passion to share your experience and passion with others. Keep knocking them out the park Phil Pustejovsky, and thank you for continuing to fuel the inspiration and drive, we as willing to succeed investors need. Thank you man.

    Info Real Investors
    Rancho Cucamonga CA

  15. Gudelia says:

    Good advice Phil .the bravery and confidence in life and money matters only comes when your older and mature.youth gives us knowledge but youth does not give you urgency ,mind focus and discipline .tho there are those who are challenge by competition and severe need.when you’re older tho it seems like you’re running out of time.there is no room for too much mistake and indecision .

  16. Rose Pachura says:

    Phil,
    What an excellent job on this topic! I have mentioned this for years to our children is to save, save for a rainy day, but in today’s world, people like to spend for material things, instead of investing. My husband and I learned from our parents to save save to buy a home or a car so no one can take this away from you, like forclosure’s. Today’s world is spend, spend for material things no matter what the cost is.
    Keep up the good education to your students as a mentor we will learn a lot from this.
    .

    • Phil Pustejovsky says:

      It has definitely fallen from popularity to save. Did you know that 70% of pro athletes are BROKE within 5 years of their playing days? It’s tragic. They go through millions of dollars because they don’t want to save. Watch the ESPN 30 for 30 called “Broke”. Fascinating.

  17. Martín Alfredo Garache says:

    Hi Phil I am 100% agree with you : Step #1 Be a owner of that business that produce cash flow. Step #2 Invest in Real Estate. Keep posting more Advises, we need them.
    Thank you and I wish you the best.

  18. Marcus Davidson says:

    Hi Phil! I’m starting a new job making 46/hr and I to start investing my money in real estate instead of just wasting money spending it on any and everything. I was wondering if I can get some help so that I’ll be successful and won’t become frustrated and want to give up.

  19. Robert McLead says:

    Great stuff Phil! You are the most down to earth, no B.S., tell the real story, teacher out here. I’m 2 months into listening and studying dozens of “gurus” methods. And I’m on the verge of having the courage to find my first deal.

  20. Thomas Parsons says:

    I love getting the knowledge and wisdom from others that have been down that road. Thank you Phil this will be another book that I add to my collection. Something I do want to suggest to those that get frustrated and yes this also came from Phil. It’s the DESIRE to be financially free and the DESIRE to be successful. But you need to focus on that desire. Read the book Think and Grow Rich by Napoleon Hill. He emphasizes that word DESIRE which makes things a reality. It has helped me to get where I am today and pushes me to do better for the future.

    • Phil Pustejovsky says:

      You can benefit even more by studying those who have truly achieved remarkable feats. Napolean Hill was about broke towards the end of his life and had it not been for W Clement Stone picking him up and throwing him on motivational speaking stages, he would have stayed broke. Napolean talked the talk but didn’t quite walk the walk like the people he studied (Andrew Carnegie, Henry Ford, etc)

  21. DeAndre Simpo says:

    I’ve been following you for the past few years and I’d like to personally say thank you for your wisdom and your guidance. You’re awesome ! I’m 27 years young and I have a ways to go concerning being a high level real estate investor like yourself but with individuals like you around and the knowledge I’m gaining through my studies I’m sure I’ll reach my goals. Thanks again Phil and may God continue to bless you and yours.

    Take care,
    DeAndre

  22. This is better than you teaching real estate, tks much. I’m only struggling to bridge the gap between steady income and starting new business/investments.

  23. Hey Phil, I just want to say I like the way you think. I’ve read your book and watch your videos and this one really connects with me! I’ve finally positioned myself- at a job-so that I have time to invest in myself. I do own a home, but I bought it as a short sale and I have at least 30k in equity. I fear that taking a Heloc will push me in over my head. I’m open to many re strategies, but which one could get me the best or fastest return on this heloc so I can pay it back? (If I get the heloc, it would not fit in my spending plan)

    • Phil Pustejovsky says:

      If the HELOC allowed you to do a deal and earn you $30,000, then it would be spending, but investing. I agree that you have to be cautious, but when a good deal is a good deal, it’s a good deal.

  24. Hi Phil,

    I`m enjoying your videos but I do wish you would use a microphone so that the room you`re in does not play a factor in the audio which can be a bit irritating.

    Thanks,
    EBNY

  25. Sadiki Coppin says:

    Great information on having Financial Freedom… I got a hold of this at a timely point in my life. Thank you for taking the time out to create this youtube clip…

  26. Thanks for this tip. I wished this information was available 30 years ago. Now that I am retired, looking to do real estate, just lack the financing and mentoring.

  27. Hi Phil,

    I have owned personal houses for 30 years, I now have been renting for the last 2 years and you are absolutely correct in saying when you rent you do not want to be buying things to fix up someone else’s house. Mind you we keep it clean and organized although if something breaks ( which is rare) I just call the management company.

    I have to say even though I am a contractor and do most of the improvements on my houses myself, I have saved a lot of money and TIME in the past 2 years because I am not buying towel bars, tile, plumbing fixtures, etc.

    My advise to anyone looking to buy a house is to start with a duplex it is still your place with an income and right offs and If you can’t deal with the issues associated with tenants right next to you then find a single family home and rent out the entire duplex, if purchased properly they will always have a positive cash flow.

  28. Hi phil, a ‘m enjoying every material I got from you, the real estate has been in my mind for a long time but it had not shown up as it is now, one more step and I will crash the nut!

  29. Hi Phil
    I am in college in my third year of study, I really cant wait, to get into real estate business after my studies. I like every part of your educational materials, this will help me to move in life with the right. thank you ones more.

  30. Hi Phil,
    I have enjoyed your presentation. I believe in everything you said. I have not put it into practice. I was looking for courses on how to become a real estate investor when I came across you. Thank you for your words of wisdom.

  31. this guys amazing

  32. Chris Horvath says:

    Great video, great advice

  33. Phil not many people understand what you teach. Thank you for some wonderful insights.

  34. Hello Phil
    I have seen many of your videos that you have posted. This one about reinvesting into your own business makes a lot of sense. I really enjoyed it thank you. I have a question thats not about this video though. Where does/can one find investors that will purchase the property I find. (Starting with probate properties) Is there a website where i can find them? Or will I need to continue legging it out. I hear that probates properties are a good way to start in real estate investing. Although I am a total beginner when it comes to real estate investing. Thank you for your time.

    • Phil Pustejovsky says:

      Just like any skill that is incredibly valuable, it isn’t usually as easy as just going to a website. First and foremost, you must secure great deals before you will be able to find investor buyers. Although a more fundamental question is…why sell to investors when in some cases, you can sell straight to a retail buyer? Furthermore, finding good deals from the probate list is a long row to hoe. It can take a year or more for that list to bare any fruit. Good luck with that!

  35. Hey Phil, you gave me a wealth of education. I’m a big Robert kiyosaki follower and was just opened minded to putting it all together which makes sense.. I am taking your course now online and want to thank you for guiding me in the right direction!!!

  36. Hi Phil, I stumbled across your book “How To Be A Real Estate Investor” on the Internet and was blown away by the wealth of knowledge so eloquently presented by you. My situation is that I am now retired, I purchased a property with my life savings with the idea of supporting my retirement from a rental income. That proved to be both unreliable and risky. The property is currently valued at $60,000. A realtor introduced me to what is called “Flipping” which has cought my interest, the only problem is that the realtor would like to have full control over the negotiations because I lack the experience, well, to me this is also risky as I would certainly want to know the ins & outs of what’s taking place.Please tell me if I’m wrong, if not, I would greatly appreciate any help that you may have to offer.

    • Phil Pustejovsky says:

      Learn how to do this business on your own. The agent will suck huge portions of your profits from the deals you do.

  37. Merlin Speaks says:

    I agree with your comments that both methods can work. My father was very much like Kiyosaki’s poor dad in that he was in education and drew a pension. However, he was middle class with a nice pension till his 80’s. He was happy. Kiyosakis poor dad apparently lost his money from risky uneducated investments and losing his educator job and pensions. Sounds like he bet the farm on a downhill slide. Doesn’t have to be that way as in my middle class father’s case.
    Anyway, the work, slave, entitlement system will soon fail when the economy collapses. Kiyosaki is right to be concerned about the millions of retired people dependent on that system – what happens to them when social security collapses? Death panels.
    So we all don’t seem to have much choice but to venture in the Kiyosaki realm with businesses and investments. However, it is impossible for the masses to succeed at this because of the crony capitalism. Most money is made by big monopolies controlled by the elite. Until crony capitalism is ended there is just no way that the masses will avoid the coming great depression. Entrpreneurs can be the exception. Some will succeed, 80% will fail.

    • Phil Pustejovsky says:

      It probably won’t be either extremes. But running your own business and taking responsibility for your finances is critical.

  38. ill take lucky... says:

    Wow this stuff really works. I seen a friend today and got three more leads. Finally got some capital to go along with this so transitioning money from one hand to the next is is much easer than I thought. My question is what if anything do I need to qualify myself as a broker.

  39. de cagle says:

    Hi

    Great video. I have read suze and dave and robert….so this was a good way to blend them together because all have some nuggets of wisdom. Im gonna get Millionaire mind on audio. Thanks

  40. Reynold Paria says:

    Hi Phil thanks very much for all of your advice,guidance and your support I reaĺly do appreciate these very informative sessions.I am new into real estate investing anf i am trying my best to follow your advice . Thank you and god bless.

  41. D. Arlan says:

    Hello Mr. Phil… and MY BEST to you in all your real estate endeavors. My name is David, and since April 3rd, 1963, I have studied most of the various real estate genre’s. It began with mortgage & escrow and in 5 years I opened my own company. We continued adding land development/ builder financing & take out loans. I added a real estate brokerage div. but, at that time, I felt there was a conflict of interest so I let it lay dormant for a while. Next I added residential construction, new and multi-family, then commercial and industrial. I’ve continued as a Real Estate Consultant with my last client being an International Non-Profit Corp. I’ve had a wonderful career and, although I am mostly retired, I maintain a CDEI teaching designation. Real estate has, in many ways, changed a lot over the past 50+ years, and in other ways, no real changes, just different ways, (more complicated), of doing them. I’ve taught real estate at the college level and find that there is no real “One Way” to approach the subject. However, I am opposed to those who would “Flip” each real estate property they see… it tells me they really have learned NOTHING at all. I encourage you to continue to teach those who are honest and sincere. And to tell them that Real Estate is not a “job”…it is a Life Style. It provides the GREATEST OPPORTUNITY in the world. However, there is a “Right Way” and hundreds of “Wrong Ways” to approach it.
    Again, My BEST to you~! The world can ALWAYS use a Good Instructor.

    david a.

  42. Joy Beacham says:

    I’m heading to the library first thing tomorrow to borrow “The Millionaire Mind” in hard copy and audio formats. I can’t remember the last time I was this excited about my financial future. Thank you, Phil.

  43. Lashon Poitier says:

    Wow! You probably just blew my mom’s advise out of the water! She has been bugging me about buying my own home especially because of my age (50). I am a teacher and love what I do but I still want financial freedom. I would probably still teach because of the rewards of investing in lives. Anyway, at first I mainly came into this as a means of having enough for a down payment for my new home. You are saying (along with a lot more that you said)I should aspire to own my home outright. Wow! Dare to dream! I have your program and if this works out, then dinner’s on me! Lol! Anyway,Thanks for the advice!

  44. Rebecca U Karlin says:

    Hi Phil,

    I watched you two or three times now and I am gaining more and more knowledge on how to improve my finances. I am now retired but I would really like to start buying and selling real estate. I live with my boyfriend but I would really like to have my own home. I just rely on my social security income and I have a small job with McDonalds just to pass the time.

    I live in a small town of Stanley in Wisconsin and there are small homes with characters. They are as old as 100 to 150 homes and ever so often I’d pass them when I am walking and they would have a for sale sign. Would you maybe talk about some creative way of buying as I do not have lots of money for down payment but I could probably afford to pay a mortgage for a two bedroom home. What do I look for before I get myself to invest into one of these?

    Land might be easier and cheaper to buy here but building a home on it would probably costly as utilities far.

  45. Wallace Paul says:

    Really felt motivated after watching your video.Working on a path to be a successful businessman.

  46. I really appreciate the balance. I ‘m currently on my way with real-estate, and I appreciate the heads up of Millionaire Mind. I will read it as well as my children. Thanks!

  47. Keith Riley says:

    Thank you so much Phil for that personal finance video! Going to get books by authors you mentioned and use what you showed. This will not be the last you hear from me! Lol. ..next time I’ll be steps further towards your apprentice program. Thanks again!

  48. Vusi Pinkoane says:

    Thank you for all the honest and sincere advice Phil. God Bless You.
    Vusi. South Africa

  49. Thank you so much Phil.I agree with you..

  50. I like the video and how Phil explains pros/cons of the teaching of Robert and Dave

    I attended many seminars in financial and I discovered that real state is the best investment to make million. You just need to love it and learn continuously by attending seminars and reading books.

    I have 3 properties for rentals now, but need to improve it quickly with the help of experience mentor like Phil

    • Phil Pustejovsky says:

      I haven’t found that books or seminars help someone go from zero to a million in real estate. Usually, it takes a mentor and a whole lot of real world action.

  51. Dominique says:

    How do you go about being a deal finder? Once I find a great deal, who do I know to contact? Finding investors. How do I judge the price of the deal?

  52. Before I make my first real estate investment, should I either form a LLC or Incorporate my new business?
    Which do you recommend? LLC or Incorporation?

  53. Hi Phil. I reside in the UK and I wanted to find out if your mentoring programme would be beneficial to me in the UK property market. I’ve watched a few of your videos now and I have gleaned alot from it. However most of the videos have seen, seems to focus on the USA market.

  54. KarGrecia Robinson says:

    Hi I’m Ms. Robinson and I’m looking to invest in Real Estate. I live in Quincy, Florida and there are some old torn down but great potential homes that I will want to flip, and have investors help me flip them and sale them. However, I do not know where to begin, and if I will need money because I’m starting back my savings account. Is it possible to get the investor without having money, and if so where do I go to find these Real Estate Investors?

  55. Thank you

  56. Hi Phil! I’ve been watching a ton of your videos, GREAT information! You know what floors me though? Most of it is just plain common sense, like this video. It’s the ‘fear factor’ that’s causing problems for most people. They’re afraid they might lose their butts in a business, myself included. That’s where the ‘nothing ventured, nothing gained’ saying comes from. I’m just starting in investing, attending a 3 day class this weekend, Nick Vertucci, are you familiar with him? Any opinions? I’m loving everything you’re saying and I’m hoping so much I can get into this and be successful at age 51 and pooped out! Thanks for all the great information! Maybe I’ll sign up to be on your ‘team’ at some point, ya never know!

  57. Phil, I recently moved my $27 K Simple IRA out of the Stock market and now its just sitting there doing nothing in a money market account.
    1) Would it be foolish to cash out and pay all the taxes and fees and invest in real estate instead?
    2) I will be testing for my Realtor exam this week so I will hopefully be able to save the commission on the listing side of my deals. Is it better NOT to have a real estate license when becoming a real estate investor?

  58. Robert Streetman says:

    How are you, Phil? I am Robert Streetman. I had a gunshot wound 27 years ago. My ex-girlfriend shot me. I had read Robert Kiyosaki ” Poor Dad, Rich Dad” but I am total disabilities. I have a car and a driver license. Thank you, Sir.
    Warmest Regards,
    Robert Streetman

  59. Francisco says:

    I’m moving to Dominican Republic. Do you have any training that helps with real estate investing out of the US?

  60. Nadeen Griffin says:

    I loved listening to this. My husband just started his own business and we want to look into real estate investing in the side. Right now we are trying to budget, but one disagreement that my husband and I have often is about owning or leading a car. Since you brought up about renting a home I’m curios what you think about that. Now we are a family of 5 so I need a larger vehicle with trunk space. Do you ever lease? Some people think it’s a horrible idea but spending $900 on new brakes and a new tire and a couple other things was not in my budget.. Thanks! Look forward to your response.

    • Phil Pustejovsky says:

      Most car leasing deals require a down payment and a monthly payment that is the same or more than getting a car loan. Plus, they cap the number of miles you can drive. I have never been able to make the car leasing math work out.

      • I really enjoy watching your videos, I wish I had them 20 years ago you are helping a lot of people including me. Thank you very much

  61. Wow, it really impressed me, I did not about the stuff like this way u explained. Thank you, u are my rule model

  62. That really was impress with how clearly you speak about every subject you talk and the explained Thank you for all you teach us I would like to meet with my wife and I if is possible.

  63. Thanks. I appreciate this a lot. Keep them coming!

  64. Stephen Moore says:

    Hi Phil,
    I really appreciate your presentation on personal finance. I am in Liberia and I have great desire to start my own business and invest in real estate. I have few pieces of land that i intend to build my own houses for lease/sale. What do you think about this in my own environment?

  65. Very good video the information you give out is priceless, I have spent so much money on scams, thank you for honest advice it is appreciated.

  66. Isabel Caminata says:

    HI! VERY USEFUL. THANK YOU,, ISABEL CAMINATA

  67. Brilliant. Thanks for the video. 1question Phil, Im from Canada, how similar is the real eastate market of United States to Canada. I would like to foloow your teachings and implement it in Canada. Is it possible? Thanks

  68. HI Phil

    Thanks for the great video and educational material you provide. I’ve recently joined to your audience and really am enjoying and profiting from them. BTW, how can I access to resources (educational I mean) about how to raise capital for a real estate investment? I live in Canada and specially with recent market regulations passed by government about minimum down payments and stress checks bank will perform to qualify a potential buyer for a mortgage, answer to this question seems to become critical. in other words: how to start a real estate investment with minimum money. I appreciate your comment and view on this.

  69. laura morrow says:

    Thank You Phil extremely informational. I appreciate you taking the time to help me get what I need to be successful. Again Thank you

  70. Mark Spencer says:

    Excellent video, Phil. I’m getting married and want real estate investing to be our home based business. I am very interested in your Mentorship program.
    Mark Spencer

  71. Frank Banell says:

    I’m going to locate Millionaire Mind and give it a read.

  72. Hello Mr. Phil Pustejovsky, I want to thank you for your video’s/books with so much information for a new beginner in real estate investing. How we must first find what our motivation is and find a good mentor.

  73. Thank you for your common sense approach. Been re-wiring my mind, in preparation to using money wisely!

  74. Tajudeen Towolawi says:

    Thanks Phil for your provoking thought on personal-finance-wisdom. It makes lot of sense. I have read your book,watched your video and attempted the quiz.

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