The value of appreciation: The Phillips family is using property as the foundation for reaching their financial goals.

BRANDON PHILLIPS LEARNED THE value of being financially independent by watching his father, who owned a carpet store. "My dad was a person who worked hard," says the 31-year-old native of Pasadena, California, "but I always appreciated the flexibility he had with his timer He had time for me."

One of the luxuries financial security provides is the ability to set your own agenda as you work to achieve larger goals. Because his father's store was successful, Brandon's mother was able to maintain her job as a teacher so she could get home in time to help her son with homework and other after-school projects. Her extra lessons enabled Brandon to earn an undergraduate degree in marketing from the University of Maryland in 1996 and an M.B.A. from American University's Kogod School of Business in 2000.

Armed with his business degree, Brandon went to work for Comcast Cable in the Baltimore/Washington regional office as a public relations supervisor, with a starting salary of $33,000. His fiancee at the time, Nedelka, 33, worked for the same firm as a marketing manager: When Comcast and AT&T merged in 2002, the company sent Brandon and Nedelka to Florida with higher salaries and better jobs. Nedelka became area director of marketing, doubling her salary to $100,000, while Brandon's salary jumped to $60,000.

The couple married in April 2003 and began plotting their financial strategy. Although the higher salaries were great, the new positions came with greater job responsibilities and longer hours. The couple's jobs seemed to conflict with their desire to start a family. "We knew we wanted a family, and that meant focusing on a way to provide a future for that child," says Nedelka, who gave birth to their daughter, Kyla, in October 2004. "Brandon also knew he wanted a business, so we made the decision that Brandon would leave his job and we would survive on my salary."

Real estate seemed a logical next step since the industry was booming and, by 2003, the couple already owned two homes. By adopting Declaration of Financial Empowerment Principle No. 1: to use homeownership to build wealth, the Phillips family built a substantial real estate portfolio.

First, Brandon used his excellent credit to strike a no-money-down deal for a 200,000, three-bedroom townhouse in Silver Spring, Maryland, in 2000. That townhouse is worth $450,000 today. When they moved to Florida in 2002, the couple used $27,000 of their savings as a down payment on a $270,000, four-bedroom home in Pembrook Pines. That property is also now valued at $450,000. And in 2004, they used $66,000 in home equity to buy a three-bedroom home in Ft. Lauderdale for $330,000. The current value of that home is $400,000.

In addition to these houses, the couple owns several plots of land: 13 acres in Tennessee, most of which was bought for $6,000 (Brandon inherited one acre), and is now worth $30,000; a one-acre lot in South Carolina, which cost $30,000 in 2004 and is now worth $70,000; and a commercial lot on the west coast of Florida purchased for $42,000 in 2004, which has a current value of $113,000.

The rental income from the couple's investment properties covers only the mortgage costs and taxes, while the plots of land do not generate any income. However, the couple emphasizes that they are holding their properties for equity appreciation value. "We want to hold on to our [real estate] assets because we see them as a way to build wealth." Nedelka says. "For us, our properties are our future, and they're something we can pass down to our daughter."

With Nedelka's income, Brandon was able to leave his job in 2004 to obtain his real estate license. He worked for the BE/MAX and Keller Williams real estate firms, learning what it takes to be a good real estate investor. In 2004, he made $50,000 from commissions. In 2005, he made another $25,000 in commissions before stopping to concentrate on a new venture.

Brandon wanted to establish an additional income stream for his family since the real estate market has cooled off. Using $50,000 of his commissions, he launched The Entrepreneur's Source, a franchise operation that helps people start their own enterprises by connecting them to franchisers or other business opportunities. "We want to have enough investments and to be financially free in our senior years," he says.

PRINCIPLE 1 To use homeownership to build wealth

The couple offers this advice to those who want to build wealth through property ownership:

Let properties appreciate. The Phillipses don't flip Since they bought their first home in 2000, the value of their properties has appreciated more than $600,000. "Hold on to properties for as long as possible," says Nedelka. "You'll see the benefits farther down the road."

Work together to build wealth. Brandon says married couples should be willing to compromise if it makes financial sense. "Ours is not the traditional home, where I, as the man, am the main breadwinner," Brandon says. He has taken over more of the domestic duties while Nedelka's salary covers living expenses.

Take control of your financial future. "Corporate America has changed. Job security is scarce," Brandon says. "Find [an entrepreneurial pursuit] you enjoy, even if you have a job, and give yourself more options for building wealth."

Declaration Of Financial Empowerment

From this day forward, I declare my vigilant and lifelong commitment to financial empowerment. I pledge the following:

1] To use homeownership to build wealth

2] To save and invest 10% to 15% of my after-tax income

3] To commit to a program of retirement planning and investing

4] To engage in sound budget, credit, and tax management practices

5] To measure my personal wealth by net worth, not income

6] To be proactive and knowledgeable about investing, money management, and consumer issues

7] To provide access to programs that will educate my children about business and finance

8] To support the creation and growth of profitable, competitive black-owned enterprises

9] To use a portion of my wealth to strengthen my community

10] To ensure that my wealth is passed on to future generations