Money: Master The Game
7 Steps to Financial Freedom
by Tony Robbins
“Put MONEY on your short list of new books to read…It’s that good.”
“[Money: Master the Game is a] distillation of just about every good personal finance idea of the last forty years”
Do you want to learn how to achieve financial freedom and security? Do you want to understand the best strategies and secrets from the world's most successful investors? Do you want to protect yourself from the common pitfalls and mistakes that can ruin your financial future? If you answered yes to any of these questions, then you need to read Money: Master the Game by Tony Robbins.
Money: Master the Game is a book that reveals the 7 simple steps to financial freedom. Robbins, a renowned life and business coach, interviewed more than 50 of the most legendary financial experts in the world, such as Warren Buffett, Ray Dalio, Carl Icahn, and Steve Forbes, and distilled their wisdom into a practical and actionable guide. In this post, we will summarize the main ideas of Money: Master the Game and show you how you can apply them to your own situation. Whether you are a beginner or an expert, a saver or an investor, a spender or a giver, you can benefit from learning how to master the game of money.
What are the 7 Simple Steps to Financial Freedom?
Step 1: Make the Most Important Financial Decision of Your Life
This is the step where you decide to become an investor, not just a consumer or a saver. You do this by committing a specific percentage of your income to your Freedom Fund, which is your money machine that will generate passive income for you for life. You also decide to become an owner, not just a loaner, by investing in assets that appreciate in value and produce income, such as stocks, bonds, real estate, businesses, etc., instead of lending your money to banks or governments for low returns.
Step 2: Become an Insider and Know the Rules Before You Get in the Game
This is the step where you learn the fundamentals of investing and how to avoid the common traps and myths that can cost you a fortune. You learn how to beat the market by using index funds that track the performance of the entire market or a specific sector, instead of trying to pick individual stocks or timing the market. You also learn how to reduce your fees and taxes by choosing low-cost funds and tax-efficient accounts, such as IRAs and 401(k)s.
Step 3: Make the Game Winnable
This is the step where you define your financial goals and create a realistic plan to achieve them. You do this by calculating your Financial Security Number, which is the amount of money you need to cover your basic expenses for life; your Financial Vitality Number, which is the amount of money you need to cover your current lifestyle for life; your Financial Independence Number, which is the amount of money you need to live your dream life for life; and your Financial Absolute Freedom Number, which is the amount of money you need to do whatever you want, whenever you want, for life. You then create a plan to achieve these numbers by saving and investing wisely and consistently.
Step 4: Make the Most Important Investment Decision of Your Life
This is the step where you decide how to allocate your money among different types of investments, such as stocks, bonds, cash, commodities, etc. You do this by determining your risk tolerance, your time horizon, and your expected return. You also learn how to diversify your portfolio and reduce your risk by using asset allocation models that suit your goals and personality. You also learn how to rebalance your portfolio periodically to maintain your desired allocation and performance.
Step 5: Create a Lifetime Income Plan
This is the step where you learn how to turn your savings and investments into a steady stream of income that will last for as long as you live. You do this by using annuities, which are contracts that guarantee you a fixed or variable income for life or a certain period of time. You also learn how to use income strategies that can provide you with more income, more growth, more safety, and more tax efficiency than traditional methods.
Step 6: Invest Like the .001%
This is the step where you learn how to access the best investment opportunities and strategies that are usually reserved for the ultra-rich and the elite. You do this by using alternative investments, such as hedge funds, private equity, venture capital, real estate, etc., that can offer higher returns and lower risk than conventional investments. You also learn how to use advanced strategies, such as asymmetric risk/reward, tax efficiency, strategic partners, etc., that can give you an edge over the market.
Step 7: Just Do It, Enjoy It, and Share It
This is the final and most important step of the book. This is where you take action and implement what you have learned. You do this by following a simple checklist that will help you set up your Freedom Fund, choose your asset allocation model, select your investments, create your income plan, and monitor your progress. You also enjoy the fruits of your labor and celebrate your achievements. You also share your wealth and wisdom with others and make a positive impact on the world.
Money: Master the Game is a book that will change the way you think about money and wealth. It will help you understand how to achieve financial freedom and security by following 7 simple steps that are based on the best strategies and secrets from the world’s most successful investors.
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