7 Simple Steps To Financial Freedom
In today’s book of the day, Tony Robins interviews the “financial unicorns” of our time. He gets financial advice from masters like Paul Tudor Jones, Steve Forbes, Carl Icahn, and Ray Dalio. Find out what these titans suggest you do to secure financial freedom for you and your family.
Money Master The Game is a collection of extensive research gathered from the world’s most legendary financial experts. In it, you’ll find the tools and principals necessary to help you achieve your financial goals.
- Climb the Mountain of Financial Freedom- Your first step to financial freedom is visualizing your goals. Ask yourself what you want your future to look like. Do you want your investments to buy you a nice vacation home on the beach and nice cars? or do you want your investments to grow just enough to cover your basic living expenses for the rest of your life?…everybody’s got different goals and the first step to achieving them is to figure out how much money your dream will cost. Once you put a monetary figure on your dream, you’ll have a specific target you can aim at when putting together your investment plan.
- Know the Rules Before You Play the Game- The second step is simple, don’t try to beat the market. The stock market has been the best place to invest in the last 100 years. According to Steve Forbes$1M invested into stocks in 1935 is worth 2.4 billion dollars today… if you held on. (If you don’t know much about stocks or the stock market in general, read chapter 2 of this book ASAP.)
- Make the game winnable- The purpose of this section is to help you figure out exactly how much money you need to invest every month based on your financial goals. Do this by either saving more of your current income or learning a skill that helps you earn more money… and invest the difference.
- Asset allocation- “Never test the depth of the river with both feet”-Warren Buffet. Asset allocation is the most important investment decision of your life, you could lose it all if you aren’t careful about where you put your money. Asset allocation is your long term strategy for diversified your investments. ( Don’t have all your eggs in one basket)
- Upside without the downside- Income is freedom. Step 5 dives deeper into asset allocation along with practical advice to help you spread your earnings among different growth buckets. 1. your security bucket- This section of your portfolio is strictly for low-risk investments such as Cash or cash equivalents, bonds, CDs, etc. This bucket will give you peace of mind, the return on your investments here isn’t the best but your downside is much lower. 2. Risk/ Growth Bucket. first, you must notice in the name that ‘risk’ comes first. although you can gain some amazing returns here, whatever you put into this bucket you must be prepared to lose it. Investments for this bucket include Equities, junk bonds, Real Estate. 3. The Dream Bucket- Investing doesn’t mean you can’t spend any of your hard-earned money on yourself or your loved ones, this bucket is designed for you to be able to enjoy yourself while putting money away for the future. Fill your dream bucket with a fraction of your earnings from your risk/growth bucket or sock away a percentage of your income until you can purchase your dream items.
- As mentioned before, Tony interviewed more than 50 self-made billionaires, Nobel prize winners, Investment titans, best selling authors, and more. This chapter dives deep into those interviews, it is a beast of a chapter and I recommend you read this part on your own.
- Just do it, Enjoy it, and share it.- The whole purpose of investing is to improve your quality of life in the future. Although you may not be able to improve your financial situation right away, you can definitely improve your physical health. What good would it be if you build up the world’s most profitable portfolio but aren’t around to enjoy it?
Money Master the Game is a game-changer. This book is packed with valuable information and essential practices that can help the average person create an income plan for life.