How to Ensure Your Financial Future w/ Phil Town | Brian Tracy

Hello, I'm Brian Tracy, and today I'm here with my friend Phil Towne. Phil and I have been friends for 20 years, and I've learned so much from him over the years. And we're here to help you learn how to ensure your financial future. If you want to live your life without worrying about or stressing about money, what Phil teaches is going to make you financially independent. Before we get into today's video topic, I wanted to quickly remind you that I have a special giveaway going on right now for my recent milestone of hitting 1 million subscribers on YouTube. Click the link in the description for details. And to sign up for a chance at some great prizes. Building financial freedom is an essential part of living your best life. The worst thing in life is worrying about money. That gut feeling. And it's about 70% of Americans or more think about money when they go to bed and think about money when they get up. And they think about money all day. And they don't think about having too much. They think about their bills and where they're going to get the money. And it's not necessary. We are living in the most affluent country at the most affluent time in all of human history. When I started studying money, before I met Phil, there were about 5,000 millionaires in the United States. Today, there's 30 million millionaires in the United States. And somebody becomes a millionaire by investing their money carefully every eight minutes in this country. And your job is to be one of them. So if you dream of a future that isn't hindered by financial worry, so that you can order in the restaurant without looking at the right hand column to see how hungry you are, If. If you want to live your life without worrying about or stressing about money. What Phil teaches and what he's taught me over the years is going to make you financially independent. Eventually, it's going to make you rich. Phil teaches you every single one of these critical skills of money. And if you compile them all together, then there's nothing that can stop you from becoming financially independent. And if you don't follow his advice, there's nothing that can help you. It's a great challenge, you know, there's nothing that can help you. So, Phil, what does financial freedom look like?

I think financial freedom is being able to do what you want to do. And if I were to put it in terms that I like, I would say that you have the ability to be in your dharma, just smack dab on the center of the flow of your life, because you have the financial wherewithal that gives you the time to pursue figuring out what that is. And when you figure out what it is, you know, then work is no longer work. Right. Then you're living a passionate life and life is good. So financial freedom can be achieved, I think, by anyone. But you gotta follow a certain set of rules, as you will know.

Right.

Gotta follow. And you gotta. I think the first thing maybe is you just gotta realize you can do it.

Yes.

A lot of people are blocked by, I don't know, people who love them in their life telling them that the aspiration to become financially independent is, you know, you're not smart enough, you're not, you know, you can't work hard enough. It's only for other people. But I don't believe that for a minute, do you?

No. The most powerful affirmation which I teach in my seminars and I taught for 40 years, is to say to yourself, whenever you have a goal or objective financial freedom, I can do it. I can do this. I can do anything I put my mind to, I can do it. I can do it, I can do it. And whenever you have self doubts, and we all have self doubts, or whenever you make mistakes and fall back, you say, wait a minute, I can do this. And if you have children, tell your children you can do it. You can do anything you put your mind to, your spouse, your friends. The most wonderful person in the world is a person who encourages and inspires people to believe that they can succeed at these goals. So you have to believe it's possible to be financially successful. And if you believe it, then the only question you ask is how? And there are hundreds of ways to achieve it. And there are some ways that are actually tested and proven and they work 100% of the time for everyone. And that's what you teach, which has been very helpful to me over the years.

Well, thank you. And I'll tell you, I wish I could take full credit for that, but you know as well as I do that those lessons on how to do this come from a long line of successful people, as you just said. Yes. There's another path. Yes, that. That I got wealthy on. And that you've been really good about being on and made you money on it. And that is this path beaten down by Ben Graham, Warren Buffett, Charlie Munger, and now Monash, Babrai Guy Spier. Many other guys like this are now doing what we call rule one investing. And that's what we teach.

Yes.

And what it means is you build basically to know that you're starting here at the beginning and you're saving money and you're getting out of debt and you're doing all the right things without knowing the path is a kind of a difficult state to be in. Right. Because if you grew up in a family that wasn't a Patel family, no one was teaching you how to be wealthy, then you've got this problem is that, okay, I'm doing the things they taught me. Dave Ramsey's right. I should get out of debt. Right. Brian Tracy's right. Get out of debt and then start saving and then start investing properly. And then right there you run into. The first problem is, okay, I'm not in a job that's making $300,000 a year. If I save all the money I can possibly save. I'm not even at 7 or 8% a year. I'm not going to be able to be financially independent. You have to do more.

Yes.

And if you do more, that means you're going to have to learn how to do this investing stuff. And so that's why we teach it. I mean, it's. It's basically that if you don't, if you're not going to be independently wealthy by just saving your money, putting it in the market, don't worry about it, you know, then you're gonna have to do more. And the more that I would recommend people do that I've talked with you for 20 years about, is getting on the fastest rate of return you can get with low risk.

Yes.

That's available to you out there. You don't want to do things that are going to cause you to lose that heart.

Are you going to tell us rule number one? You've written your.

Yeah. Rule number one is. Warren Buffett famously said, rule number one is one of two rules of invest, two rules of investment. There's just two. Please tell us rule number one. Don't lose money.

Yes.

Rule number two, don't forget rule number one. That's right.

When in doubt, refer back to rule number one. Number one, whenever you get tempted to do something with your money that may not be safe is go back to.

Rule number one, lose money.

Now, what do you do with. With your clients?

What do we do?

Yes, please tell us.

Well, with our students, what we do is we teach them four things. Yes. It's really four basic things. If you're going to do this yourself, you want to do it so that you don't violate rule number one. You don't want to lose money, so you do it the way you would do it if you were to buy a townhome or a condo to rent to someone else.

Yes.

You would know absolutely that 20 years from now it's going to be worth more than you bought for.

Of course.

Okay, so that's the first thing. And in real estate, that's about location.

Right.

So location to this condo, that's a competitive advantage to buying a condo in Detroit. All right? So you've got location, and that gives you certainty that 20 years from now that's going to be worth more than it is today. And that gives you the confidence to go ahead and make that investment with all of your money.

Right.

You put it all in there. You notice that people. People don't worry about diversifying when it comes to buying something. They understand. Yes.

Right.

So the first thing you do is you make sure you understand this business the way you would understand that real estate deal.

Yes.

Every fact about the business, everything there is, and. And understand it well. Which means for me, I'm pretty capable of investing in a real estate deal like that. Buying a condo or.

Well, here's an important point. Everybody who is successful in real estate or stocks, bonds, everything else, at one time, knew zero about the subject, knew absolutely nothing. And most of them had made enormous mistakes because they didn't know what they were doing. This knowledge of what you're doing is a turning point in your life.

Yeah. And saving the time of making the mistakes yourself.

Yeah.

Okay. So we learned from the masters. Right. The grandfathers. So the first thing is understand. And so I can understand a burrito company. Right?

Right.

Maybe I don't understand Microsoft.

Right.

Okay. So burritos are good for me. Now you have to have a business that can be competitive for a long period of time.

Right.

So it has to have some kind of value intrinsic to it.

It's gonna have something special.

Something special that can protect it. Like a railroad company has tracks.

Yes.

And you can. Can't compete because you can't get tracks. So you have a competitive advantage, and then you have a management team that reflects your values. And this is so important, Brian, because I want to own companies I'm proud of. I don't want to own companies where they're ripping off the employees or they're. They're ripping down the environment or the things that are important to me. I want to be able to tell my kids, look, we. When I buy one share of a company, I want to feel like I own the whole thing. So if I buy one share of Chipotle, Mexican Grill. It's because I like the values. I like the burritos they make. I like the way they have. Are pressuring farmers to raise their pork in a more. That is ethical way.

Important that you buy into a company that produces products and services that you like and use yourself.

And use yourself.

It's astonishing how many people think they can make money on something that they don't even life. But somehow someone else.

Here's what blows my mind is people have really strong values about things. For example, let's just take an easy one. People teaching their children not to smoke cigarettes. And yet they own Altria, which makes the cigarettes. They're teaching their children not. Not to smoke. And then I say, you own Altria. And then they'll say, no, no, I don't own Altria. So do you have an index fund? And they go, yeah, yeah, I have an index fund. Oh, well, okay. You own Altria because it's in the index, right? And so you end up, if you diversify across a bunch of stuff, you own things you don't agree with, which is a little bit hypocritical. So you got to do investments where you are tying your values. What you say with your mouth, you're putting your money where your mouth is. So I think that's super important. And then finally, as we've discussed, you want to buy it on sale. So those four things, they don't take a semester to figure out. You're going to understand the business. It's going to have a big moat around it. It's got good management. And you buy it on sale. That's it. And that's this path. And when I started learning this, I went from, okay, now I know how to save money and get out of debt. But oh my gosh, I can see this now. I can see me becoming wealthy. If I just stick with this, I will make this happen. And that's very, very, very small, solid and working hard. And I did it.

And then, and then time, you know, what is it that Charles lynch said? A wonderful line. He said, it's not timing the market, it's time in the market.

It's time in the market. And think about what it is. You're buying a wonderful business and you're buying it because you know it'll be bigger in 10 years if you don't think so. We don't even buy something for 10 minutes if we're not ready to hold it for 10 years.

Right?

And so you put the money in there and then you let compounding yes. Do its magic, which is this business starts to grow itself in a compounded growth rate.

Yes.

And the money just gets huge. It gets stupid huge. Basically, we've learned all this from Buffett. Would be happy to teach you guys if you want to come and learn. So how would you know something?

What do you want my friends to do?

Ah, well, I think. Good question. I think what you should do. Yeah. We do teach this. We have a three day class.

Yes.

And we can get your students a scholarship. So if they can get to Atlanta, we'd be happy to teach them for three days. We bring them down to our house, have a nice barbecue out at the farm, meet some horses and go back and work your rear end off for three straight days. And if you'll go over to our website, rule1investing.com just apply for a scholarship at the website and we'll be happy. Just let us make us a little note and Brian, and what is a scholarship?

Define a scholarship.

Scholarship covers the three day course which is normally priced at $4,000. And all you're doing is just get yourself there and we will take care of you the rest of the way. That's pretty good deal. One more thing I think is pretty important because a lot of people are concerned that they don't know what they're going to get into when they come to one of these things. So check out the people who've been to it. They'll be happy. They're all over the Internet. Right. And we don't sell anything there at all. We just teach you. All you're going to do is learn for three straight days. We bring in a coach to student ratio of something about 8 to 1. So you're going to be working closely with people right there at the desk. And you work hard for three days. At the end of those three days, we send you home with a plan on how to go out there and start making your money.

Well, everybody I know who's been there said it's a life changer. Their life is never the same after your course.

Thanks man.

This is your specialty in world. You're born to give this program.

Thank you.

And so if one of your thoughts is to become wealthy, this is one of the smartest things that you can possibly do. And there's no cost and they're not going to sell you anything. They're just going to teach you everything that you need to do to become wealthy over time. So I would recommend that you go, I would recommend that you go to the website, give us the website.

It's rule1Investing.com.

Go and sign up and get into the next program. It's a life changer. It's a real life changer. Thank you so much, Phil, for going on.

This is such a pleasure.

Great conversation.

Thanks for having me, Brian, as always.

Well, my friends, if you enjoyed this video and you feel it was valuable in teaching you about how to ensure your financial future, subscribe to my channel like this video and share this video with your friends. And don't forget to click the button on the screen for a free gift. Thanks again for watching.