Tony Robbins is famous for his coaching, leadership, strategy, and the positive attitude he spreads through business and philanthropy. He encourages us to realize that our power lies in our decisions. In his latest book MONEY Master the Game: 7 Simple Steps to Financial Freedom he offers wisdom from over 50 of the most famous and successful experts alive today in easy-to-follow advice. Many of the steps mesh with what we teach at Paradigm Life, and we’d like to share our take on concepts from the book:
1. Take back control.
Be responsible for your own stewardship. So many of us are used to giving our money to someone else to grow for us. Start thinking about the control you can take over your hard-earned money and wealth-building strategies other than your 401(k). Where can you get an even bigger or more stable return than the stock market?
2. Get education.
Learn the rules before you start playing the game. With technology and online trading, it’s easy for anyone to trade, but those who are in the game and win know how and where to put their investments and they keep a tally of their returns and minimize their risk of losing money.
3. Make the game winnable.
Define what success means to you. Be realistic about your definition of financial freedom—winning the lottery is not necessarily the definition of financial success. Next, examine where you have “holes” in your bucket of finances. Likely you are offering financial institutions fees you don’t really need to pay, and that’s like letting the opponent into your huddle. Set up a plan to wipe out unnecessary spending.
4. Making the most important investment decision of your life.
Lay the foundation by creating a security bucket and determine how much needs to go in there. Build your base before taking risk. Don’t forget to put money aside for things that will motivate you. Tony suggests a “dream” bucket.
5. Create a lifetime income plan.
Find a financial strategy that will safely grow while offering you liquid cash with which to make smart investments. Pass this strategy to your children and grandchildren. The best way we know to do this is through permanent life insurance with a cash addition—a proven strategy used for hundreds of years.
6. Discover secrets of the wealthy:
With well-designed allocation and access to liquid cash, you are set up to grow wealth and make any economic environment an opportunity. In a solid economic environment pay in cash, pay up front, and take advantage of benefits from having cash. In a shaky economic environment you can be the buyer when everyone else is scrambling to sell. If you’ve planned well, you won’t be making emotional decisions at critical times.
7. Just do it, enjoy it, and share it.
Remember, wealth is not created passively. You need to get involved with your own financial strategy. And so much of investing is psychology. Your beliefs about abundance and scarcity are the keys in finding opportunity to focus on outcomes you truly want.
The most important advice we can emphasize in this incredibly researched book is that investing in the stock market is not the only way to grow wealth. Looking for actions you can take that give you the upside of investment without the downside of high risk. Here are a few easy places to start:
- • Avoid third-party debt (credit card, automobile, lease—anything that has an interest rate that you pay to someone else).
- • Reduce fees (add up all of the fees you pay to financial institutions and brainstorm ways to get rid of them one by one).
- • Shift your investments to more stable arenas, like permanent life insurance with a cash addition. It will offer you similar returns and liquidity.
- • Use liquidity to act on ideas like real estate, side businesses, and decisions with low investment and high returns.
After reviewing Tony’s book we recommend it highly! You’ll be amazed at how well our financial solutions and strategies dovetailed with his topics. Don’t underestimate building a safe foundation, or security bucket, that has liquidity. When you structure your finances with that “lifetime income plan” you are free to take risks with cash. As you read his book be sure to browse the topics in our free eCourse called Infinite 101® and see for yourself which ones can make the biggest impact in your wealth building plan.
Pay close attention to concepts like permanent life insurance (structured the right way), economic leverage, velocity of money, cash flow, tax advantages, and compounding money they are perfect mechanisms to implement Tony’s principles and will be a huge boost to getting you started on the road to financial freedom.
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Q: What are seven simple steps to master money and achieve financial success?
A: Seven simple steps to master money include creating a budget, setting financial goals, and establishing an emergency fund for unexpected expenses.
Q: How does creating a budget contribute to better financial management?
A: Creating a budget helps individuals track their income and expenses, make informed spending decisions, and allocate funds toward savings and investments, ultimately leading to better financial management.
Q: Why is having an emergency fund an important part of financial planning?
A: An emergency fund provides a financial safety net for unexpected expenses or emergencies, reducing the need to rely on credit or disrupt long-term financial goals, making it a crucial aspect of financial planning.