However, they all lack one thing. Passion. This is what struck me as I turned page after page of Tony Robbins’ MONEY: Master the Game book. It was full of passion, to say the least.
Not only is Tony well-known for his powerful skills of persuasion, but he’s also fantastic at stirring up those feelings of urgency needed to make a real change in someone’s life.
Tony is an established business strategist, influencer, and self-help master who has helped millions of people realise their dreams of self-actualization and success. He has written about countless topics, but this is the first time that I’ve seen him deal with financial matters.
The good news is that the book is great for that sort of advice, and Tony does an excellent job of explaining every detail. The bad news is that it’s a bit long - Over 600 pages, so if you intend on devouring this book in an afternoon, keep that page count in mind.
This article will summarise the 7-step financial plan that Tony Robbins outlines in his book, along with any examples he discusses.
Step 1: Invest in Your Future
The very first step that Tony wants readers to understand is the importance of investing in their own future. What does that look like to someone reading the book and living in the U.S.? It means investing in their 401(K), a retirement plan that covers expenses for the rest of your life.
The point Tony wants to make clear here is that so few people think that far ahead. They spend all their money, get into debt, and don’t invest in their retirement.
This is bad not only for personal well-being but also for wanting to become wealthy. Retirement savings are non-negotiable.
While a 401(K) is not for everyone since it’s super expensive, you can still take control of your financial life by learning how to set aside a small sum of money every month for your retirement.
It’ll soon compound, and you’ll be able to take things further by investing that money and growing it even more.
The takeaway here is to make sure all of this is for your retirement. It shouldn’t go towards covering any other expense.
Tony says mastering this first step is crucial since it builds the discipline required to move ahead.
There’s a lot of emphasis on the idea of freeing oneself from doubt and fear since these things hold people back in their lives, financial freedom included.
Step 2: Become the Insider
This step is essentially a financial roadmap to bust myths that hold people back when it comes to investing, setting a budget, saving for retirement, diversifying earning methods, and taking risks.
There are 9 myths in total that Tony Robbins takes the time to meticulously discuss and break down. They are:
- Myth #1: The first thing Tony Robbins sheds light on is the common myth of investing in the stock market. Specifically, he mentions mutual funds and how they promise misguided investors that they’ll beat the market and earn unimaginable returns over time. Tony makes the point that 96% of these mutual funds fail in their objectives and a better alternative is to simply use a portfolio of low-cost index funds for investments.
- Myth #2: Next, Tony Robbins discusses the impact of fees on savings and investments.
- Myth #3: This one is about the returns people get when investing in a mutual fund. Again, Tony wants his readers to stay away from mutual funds as a means of investment because they give a very lacklustre ROI.
- Myth #4: The fourth myth is the trust people put in brokers and other third parties to take care of their money. Tony emphasises that only YOU can take care of managing your funds.
- Myth #5: Robbins touches on 401(K) savings plans, their uses, how people have come to rely on them, and the damage they cause to long-term financial freedom.
- Myth #6: Target-date funds are not what they seem. This myth requires education on how pay-to-play fees work.
- Myth #7: Annuities are explained. They’re more good than bad, despite what common wisdom might say.
- Myth #8: Huge risks are not a good idea. Robbins reminds readers to never forget the No.1 rule of investing, which is “Don’t lose money.”
- Myth #9: The last myth is more of an eye-opener. It’s aptly titled “The Lies We Tell Ourselves.” This one reminds readers one last time to never follow financial advice blindly and to always do the proper research first.
Needless to say, the second step is the crux of Robbins’ strategy for financial freedom.
Step 3: Make the Game Winnable
This step is all about setting long-term financial goals and taking the necessary steps to realise them. Robbins encourages readers to sit down and ask themselves a very good question:
“What’s the price of your dreams?”
Meaning: What is the financial ceiling you need to reach before you attain financial freedom? This varies from person to person, and it takes a lot of deep thinking and careful planning to get it right.
More importantly, progress stops if someone is not clear about their goals, so again, everyone needs to follow this to a tee.
Step 4: The Most Important Investment Decision
Robbins calls asset allocation the most important investment decision of anyone’s life.
It’s literally what will allow you to build up wealth consistently over time without worrying about extra overhead.
Asset allocation is all about STAYING wealthy, not just building wealth. Robbins also gives a great deal of attention to market timing and stock picking.
The three together form the core of his long-term investment strategy.
Step 5: Creating a Lifetime Income Plan
Now that you’ve taken care of asset allocation, prepared mentally for becoming wealthy, and decided to educate yourself on the topic, it’s time to create a plan that covers every expense you might imagine.
The perfect portfolio that you should create is all about:
- Bringing in extraordinary returns.
- Establishing extraordinary financial safety.
- Having extraordinarily low volatility.
These three things should become possible if you’ve been following everything before like Robbins outlines, and they’re actually very doable if you stay consistent over your lifetime.
Step 6: Invest Like the 0.001%
Once you have a steady income plan in place, it’s time to look ahead. This means investing like the wealthy do, like the 0.001% of humans do. It means following in the footsteps of giants like Warren Buffett, Ray Dalio, and Chuck Schwab.
Investing like these people is all about doing the following:
- Don’t Lose: Don’t lose money. Your investments should keep bringing in cash flow at all costs. If you lose 50%, it takes 100% to get back what you lost and continue, so never lose sight of this one.
- Risk a Little to Make a Lot: This means taking calculated risks when the situation allows it. If done right, this can sometimes help you triple or quadruple your earnings.
- Anticipate & Diversify: Anticipate market trends and demands and diversify your investment options to avoid putting all your eggs in one basket.
- You’re Never Done: You’re never done learning, never done trying, and most certainly never done earning. Cultivate a growth mindset when investing for the best results.
Investing is a skill, and it requires constant practice to get right and perfect.
Step 7: Just Do It, Enjoy It, and Share It
This one is all about taking action. It doesn’t make sense for you to read the book cover to cover and not do anything. You need to start NOW.
Begin the journey toward financial freedom by applying Robbins’ teachings one step at a time.
Fail, learn from the process, fail some more, and then finally WIN!
It’s the only way to succeed at this, and the only way to realise all your dreams.
In Conclusion:
As someone who grew up with little financial literacy, Robbins’ book was extremely eye-opening. I have thoroughly enjoyed reading it and summarising it here for you guys, and I hope you found this informational.
The book goes into MUCH greater detail about all the greats who beat the odds and became billionaires through sound reasoning, good planning, and a lot of savings, so there’s a lot to unpack there as well.
Robbins does an excellent job of covering American financial history and presenting short snippets of it for readers to digest and apply in their daily lives.
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