[Note: To follow is an excerpt of an interview with Peter Jeppson, co-owner and co-author of Money Mastery®, a financial literacy and coaching program designed to help individuals and families get in control of their finances. To listen to the show archive or download an MP3, go to www.IncomePropertyInvestmentTalk.com/120308.]

Mosca: There are thousands upon thousands of financial planners out there. What makes Money Mastery unique?

Jeppson: We empower the person. Financial planners, for example, want you to trust them. They are usually selling a product to say, “I’m trained. I’m a professional. Give me your money and I’ll invest it for you.” In 1987, Black Monday, October the 19 to be exact, I had a lot of clients call me and they were ticked off. I had made them dependent on me because I was a “financial planner.” I said just hang in there and it will come back. It did of course. What are they saying nowadays right? Just hang in. I got so fed up. It was so discouraging and I said this is ridiculous. Our clients are critically involved in everything they are doing and actually invest their own money and keep full control of the money. I’m not in the stock market. On the long-haul real estate has always been so much better. You get up in the morning on it, you eat on it, you travel on it, and you take off on an airplane on it and land on it. You can’t do anything without real estate.

Mosca: Money is emotional and you really have to have a lot of confidence in yourself to be successful. Can you talk a more about that?

Jeppson: Many people don’t understand that when dealing with money they are dealing with emotions. Emotion is everything. Good investors are in control emotionally. People who are in control emotionally plan things in such a way that if something goes wrong it comes ‘straight down’ and doesn’t reach out laterally and screw up your credit and relationships. We emphasize emotional control. We all should have a system on how we handle our money and then get the system working. In other words, money isn’t the most important thing. We certainly shouldn’t worship it. If we have a system of handling it, the way we get organized, the way we handle our taxes, the way we invest our money, the way we discuss money, the way we control our spending, then money takes care of itself. We don’t have to worry about it. So many people without a system worry, and almost worry to death. Money has such an impact. Without a system, they’ll always worry, spin in circles and go nowhere. [If any RealtyTimes reader is worried, go to incomepropertyinvestmenttalk.com/120308, and we’’arrange to have Peter call you for a free consultation, and you will receive a copy of his book Money-What Financial Experts Will Never Tell You.]

Mosca: Can you explain what you mean by stating in your program that saving is actually delayed spending?

Jeppson: People think when they save money and then buy a TV, or save money and go on a vacation, that that is saving. That is saving to spend. What we propose is to spend your money into a place for investments. Spend it into an emergency fund. Spend it into various things. Learn how to spend your money, not budget. When you budget you identify where your money is going to go and then most times say, “I can’t afford this” and cross it off. This a negative way to live. You’re always identifying what you can’t have. Reverse that. Spend your money on items you want. Start with number one. I want number one for sure. I need numbers two, three, four and five, too. Eventually you run out of money by item 21 but isn’t it nice to know that the top 20 items were done. You begin to spend money on the things that are the highest priority instead of budgeting to lop off what you can’t afford.

Mosca: I’ve heard you say that $100 is only $24. Is that true?

Jeppson: You’ve been paid $100, but by the time you pull out the taxes and interest expense on your debt, the depreciation that does occur, on the average in the nation, we really have $24 left to spend. In one hand I have a paycheck with a hundred and on the other hand the money I have to control of is $24. This is why people never seem to be able to get ahead. The reason is the other influences that come in and grab the money. Often times, however, it is not uncommon for our clients to double the amount of money that they really do have available to them. In my book, “Money-What Financial Experts Will Never Tell You,” I teach you about spending and to be in control emotionally. We are very sincere about that. I sound like I am on a soapbox, and I don’t apologize for that.

Mosca: How important is it to know the rules, that seem to always be changing, like our current economic malaise?

Jeppson: Picture a map in front of you, say the United States, and there is a star right in the middle of it. It could be Des Moines. There are two things you have to know to get to that location. One is it Des Moines, is it St. Louis, is it Oklahoma, where is it. Second is where are you? If you are in Maine, the route to get to Des Moines, Iowa is going to be totally different than if you’re in Seattle. We contend people need to know where they’re going. First, you need a specific game plan. Second is a better idea on where you are financially. With those two things, get a plan and be very specific. Now you have a map. Have a system to communicate, to manage and to spend the money.

Mosca: What is your golden nugget for today?

Jeppson: My whole point today on the soapbox is get a master plan and that’s where you're spending, debt, taxes, and retirement are working together all as one unit. If you get my book [go to www.IncomePropertyInvstmedntTalk.com/120308], we will give you our software for a month and let you develop a spending plan, debt plan, tax plan and a retirement plan.

Published: December 18, 2008

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Peter L. Mosca is president and founder of BAK Communications, Inc. He has over 22 years of communications and media consulting experience, serving a variety of nonprofit organizations, including the CCIM Institute and the REALTOR Association on all three levels – national, state and local. He is the Spokesperson Trainer for the CCIM's Jay Levine Academy and trains hundreds of residential REALTORS nationwide to be effective industry spokespeople. He is consistently ranked as "excellent" by about 90% of those who attend his presentations. While his principal consulting focuses are public speaking and media relations development and content delivery and management, Peter is also the host of the Voice America Network's weekly radio program, "Income Property Investment Talk," a one-hour program that brings the powerhouses of commercial and residential real estate to property investors every Wednesday at 11 a.m. EST. Peter is married 17 years to his wife Barbara. They have two children: Ashley, 15 and Kelli, 12. Hence, the name BAK Communications, Inc.