Tony Robbins is a master at studying and then modelling successful behaviour. His book is financially modelling in practice and the outcome of his relentless pursuit to understand how the most brilliant financial minds navigate and succeed through every economic condition. It includes interviews with Paul Tudor Jones, Charles R. Schwab, Carl Icahn, T. Boone Pickens, Ray Dalio, John C. Bogle, David F. Swensen, Mary Callahan Erdoes, Kyle Bass, Marc Faber, Sir John Templeton, and Warren Buffett.
Tony Robbins walks readers of every income level through the steps to become financially free by creating a lifetime income plan. This book delivers information and essential practices for getting your financial house in order, albeit with strong US bias. It also offer helpful investing tips that most people who invest have known for years now:
· - fees eat away most investment profits
· - over 90% of professional stock pickers under-perform the broad markets
· - earn more, spend less and automate the investing process.
Quick summary of the 7 Steps ( it is actually a fun book to read, not heavy like many other financial books):
Step 1: Make the Most Important Financial
Decision of Your Life.
In essence, decide to become an investor (not just a consumer). This means automating a specific percentage of your income that goes toward your "Freedom Fund" (i.e., your ideal retirement nest egg, which you calculate based on your desired financial outcome).
Step 2: Become the Insider: Know the Rules Before You Get in the Game
Here, you shake off the nine most common myths about fees, actively vs. passively managing funds, real costs of specific investments,etc..to help minimise your risk of losing money and over-paying fees, and create tax-advantaged investment strategies.
Step 3: Make the Game Winnable.
This is when you calculate exactly the amount of money you will need for your financial freedom.To make these calculations super simple, Robbins provides a companion mobile app
. You also look at your spending habits and how you can speed up your plan to achieve financial freedom faster-from limiting your daily impulse purchases to reducing your taxes, earning more, relocating, and improving your lifestyle. There are lots of ideas here on how to achieve your desired financial outcomes faster.
Step 4: Make the Most Important Investment
Decision of Your Life
. \This is about asset allocation, rebalancing, and cost averaging.
One interesting idea is to not just have "Risk/Growth" vs. "Security/Conservative" but to also include a "Dream" bucket.
Step 5: Create a Lifetime Income Plan
This is about understanding the returns you are currently getting on your investments compared with other portfolios and recommended asset allocations. These are the secrets of the ultra-wealthy.
Step 6: Invest Like the .001 Percent
This is where you learn that the worst environment is your greatest opportunity: to buy when everyone else is selling in a panic, and to sell when the markets are going crazy in the positive direction.
Step 7: Just Do It, Enjoy It, and Share It!
This is about investing and psychology. We can choose to see the world as scarce or abundant. We can see the world filled with problems or opportunities. Daily priming and the appreciation of what you already have will ensure you focus on the outcomes you truly want, as opposed to worrying about what you don't have and not taking action because of fear and other negative emotions that are holding you back.
If financial freedom is important to you, then you have no choice but reading this book