Today’s guest, Philip Taylor – better known by his nickname, “PT” — is one of the most well-connected guys in the personal finance world.
PT is the founder of FinCon, the preeminent conference for bloggers, podcasters and YouTubers in the field of personal finance and micro-entrepreneurship.
He’s spent the past half-dozen years building tight relationships with some of the most influential authors and speakers in this space. Naturally, he’s been exposed to countless ideas.
Several weeks before our interview, I asked him to condense these ideas into a few key takeaways. What ideas have stood the test of time?
After a few weeks of contemplation, PT came to the interview prepared with a list of the top five money lessons he’s learned over the last decade.
#1: Take ownership of your financial life.
Act, rather than be acted upon. Accept responsibility over your future self. Develop a strong internal locus of control.
Action: Avoid debt. This gives you greater control over every incoming dollar.
#2: Be intentional.
Every present action leads towards a future consequence. The choices you make today will reverberate throughout your life.
Action: Create annual goals. This helps you connect your actions with your bigger purposes.
#3: Honor the power of talking about money.
Money is a taboo topic in our culture. We need to open up about money so that we can exercise more control and make more informed decisions.
Action: Talk about money with your family. Discuss debts, savings levels, goals and worries. Be specific, and repeat these conversations frequently. Breaking social taboos begins in your own living room.
#4: Become your own financial expert.
You cannot outsource thinking. Sure, you can gather opinions from experts, but you’re in charge of making the final decision.
Action: Read blogs and books about personal finance; listen to financial podcasts. (Good job!!)
#5: Embrace radical challenges.
Financial success comes faster if you choose to act radically. Over time, the radical feels ordinary.
Action: Choose a “stretch” goal, like saving half of your income, buying an investment property, or maxing out your retirement account. As Dave Ramsey says, “normal is broke. Be weird.”
PT shared several tactical tips, including:
- Buy term life insurance, rather than whole life.
- Focus on low-cost investing, such as passively-managed index funds.
- Automate your savings.
- Focus on income growth.
- View frugality as a discipline. It’s not a means to an end; it’s a lifestyle and a core value.
He also talks about the power of building a world-class network. What strengths has he gained by forming relationships with so many interesting people? And what lessons can each of us learn from his experience?
- Masters of Money – PT’s new podcast
- PT’s first blog post (about the cost of watching sports at Hooters!)
I also want to take a moment to thank the sponsor for this episode.
If you’ve been listening for a while, you’ve heard me interview many best-selling authors. Before I interview these guests, I need to read or refresh my memory of their books.
Sitting down to physically read the books can take a long time. That’s why I listen to their audiobooks, thanks to my subscription to an audiobook service called Audible. If you want to give them a try for free, head to audible.com/trynow for a free 30-day trial.