Book Review: The Lifestyle Investor

I recently re-read The Lifestyle Investor by Justin Donald [1]. While a new version of the book came out n April, I read my copy of the original.

Finding a mentor who is ahead of you and will help you reach your goals faster is invaluable. Justin can help fill that role – through his book and podcast [2], he provides insights into how he made the transition from employee to financial freedom that can be used on your journey.

While my goals are different than Justin’s, I find I get a lot from his journey. I believe you can as well.

I first read the book in 2022, when I was actively working on building my investment portfolio to the point where I could sustain my lifestyle. Now that I am further along my journey, the book was a good reminder to keep focused and continue to build my portfolio strategically to ensure that my investments continue to work for me.

Major takeaways from the book:

Be clear on your investment goals. For each investment, know what you are trying to get out of it and how it fits in your overall portfolio.
Focus on win-win strategies. Work with the other people in the deal to structure the agreement so that everyone gets what they need out of the deal. Don’t be afraid to negotiate on a deal, look for opportunities outside of the money. It is almost never the case that the initial structure of the deal can’t be adjusted to meet the needs of everyone.
Leverage your unfair advantage. Your unfair advantage is how you will increase the value of the business over time. Maybe it is your knowledge / expertise or perhaps your network, location, or willingness to work. By having an unfair advantage, you are able to increase the odds of success and are less reliant on the market making the deal work.
When you hire a professional, don’t just have them do the work – have them teach you why they are making the decisions they are making. This is an investment in yourself as well as your business. Always invest in yourself when you can.
Spend time with people who help you move forward. Leverage mentors, masterminds, and other professionals in your network. Be intentional who you spend your time with since they will greatly impact your success.

Action steps you can take:

Before your next investment, write down your personal investment philosophy and what you are trying to get out of the deal. If you need help understanding what you are trying to accomplish, you can start with [3]
The next time you are reviewing a deal, ask yourself what would need to change in order for the investment to be great for you? And for the other person? Is there a way to make both happen?
When evaluating a deal, determine what the unfair advantage you or your partners have that will improve the chances for success. If you don’t have any, then reconsider why this is the right deal for you.
Spend time learning from the professionals you hire. Understand why they make the decisions they do and decide if you agree with their reasoning. If you don’t, it may be time to expand your network.
Review who you are spending time with and where you are getting information from. If your network isn’t serving your goals, consider what changes you can make.

Following that advice, Justin was able to create his ideal lifestyle – breaking his paycheck dependency and living life intentionally.

The transition from a tech paycheck to passive real estate income isn’t just possible—it’s a well-trodden path for those willing to learn and take action.

In an abundant world, there’s room for everyone to succeed. Your unique skills as a professional are an asset. Leverage them for your financial freedom

If you have any questions or comment about this post, please email them to me at blog@mbc-rei.com, I will reply to the questions that are straightforward and will turn the questions requiring more detailed answers into future blog posts.

For additional reading:

This article is my opinion only, it is not legal, tax, or financial advice. Always do your own research and due diligence. Always consult your lawyer for legal advice, CPA for tax advice, and financial advisor for financial advice.