Everybody wants to get rich. We all want the fantastic life and opportunities that are enjoyed by billionaires and other wealthy people around the world. We all wonder how to get there. Now there is a definitive guide on how to get rich and enjoy the benefits of financial freedom. It is a book known as "Money: Master the Game" written by Tony Robbins.
Who is this author and how did he write the book?
Tony Robbins is one of the most respected authors of this decade. He writes motivational material on various topics such as diet, leadership, fitness and wealth. People around the world testify that Tony's books have changed their lives for the better. Coming from a 20 year publishing break, he wrote "Money: Master the Game". The book has earned him respect and admiration from influential organizations such as the New York Times.
To write his award winning book, Tony interviewed the most successful investors in the world. Some of these include Carl Icahn, Warren Buffet, Ray Dalio and Paul Tudor Jones. After learning from them, he distilled their wisdom into 7 guidelines that you can use to make a fortune and achieve financial freedom. The guidelines cover concepts such as controlling your financial decisions, creating plans for saving and investing as well as establishing a plan for lifetime income. The book is full of tips and advice on how to secure a place among the financially free. Do you want to know more? Read on to discover the lessons we learned from "Money: Master the Game".
Compound interest can be your best friend
Warren Buffet is one of the wealthiest men in the world. He confesses that one of the keys to his immense fortune is compound interest. It is calculated from the principal plus interest. This results in a bigger figure than if the calculation only involved the principal. Compound interest can make your deposit grow much faster than simple interest. By understanding the importance of this financial concept, you can begin to think like an investor and not simply a consumer. With self-discipline and time, you can transform a small deposit into a massive amount by applying the lesson of compound interest.
Learn the rules of the game before you start playing
Tony indicates that we should act like insiders. That we should learn the rules of the game of money before we participate. Albert Einstein is a very famous scientist. He said that if you want to succeed, you have to learn the rules of the game and then play it better than anyone else.
We often assume that successful businesses are easy to create because they look simple on the outside. However, a tremendous amount of work was done to make them possible. Many people assume that the game of money is easy to play because others make it look that way. Once they fail, they realize how challenging it really is. If you want to win, you have to prepare yourself by learning all that you can about your chosen sector of the game of money. Once you have learned all about it, jump in and play smarter than anyone else in it.
Increase your chances of winning in the game of money by planning
One of the most important activities to perform on the road to financial freedom is meticulous planning. If you don't plan, any change that you desire is only a dream. If you delay your planning or fail to plan at all, your dream can rapidly turn into a nightmare. In terms of wealth acquisition and management, it is very important to plan how you will be aware of your personal finance. You should know how much you earn and how you spend it. This allows you to have a clear plan of how you will secure your wealth and possibly even increase it. In spending, you should be health-minded. In investing, you should be wealth-minded. You can gradually increase your wealth by understanding the lesson of planning.
Focus and then diversify
In the world of investing, there are two main words that you should never forget nor deviate from. These are focusing and diversifying. The global systems of investment are filled with traps that can destroy your financial future. You can be an insider and discover where they are laid so as to avoid them. One sure way to beat these traps is diversifying your investment portfolio. In the book, Robbins shows you how to do this and manage your appetite for risk. Once you follow his instructions, you will master the lesson of diversification.
Create a portfolio that will weather any storm
The process of investing is not actually a concept. It is a lifestyle. You don't need to be a professional stockbroker or manage a big hedge fund so as to be part of this lifestyle. All that you need to do is learn and live by a set of rules. You should make these rules your working paradigm. The first rule is never to lose money. The second rule says you should refer to the first one. The main objective in these rules is to avoid losing money at all costs.
Despite seeming impossible, you can actually build a portfolio that is so stable, it will survive any economic condition with minimal losses. One of the foremost authorities on creating such a portfolio is Ray Dalio. He calls his model the four season portfolio. It shows you how to diversify your investments by placing them in areas where they have high chances of success. Learn the lesson of the four season porfolio and you will be closer to your financial freedom.
Learn from the masters of the game
To master any skill, there are three steps involved. The first is hard work, the second is patience and the third is the right guidance. If you don't know how to do something, contact someone who does and let them teach you how it is done. Majority of us believe that we can become perfect at any skill by trying and failing. This will help you to learn it but it will take you forever to become a master at it. If you want to master the game of money, find experts in it and have them teach you. This shortens your learning curve and accelerates your progress towards being financially free.
Learn to invest in your present and your future, never the past
This is the most valuable lesson in Robbins' book. He indicates that the decisions we make eventually control the quality of our lives. To be successful in the game of money, you should focus on what you have and not what you don't. You should also learn how to control your emotions because they can create obstacles for you. As such, you should master them so as to make a permanent, positive change in your life.
Finally, you should strive to control your mind. Our brains are 2 million year old organs. They are hard wired to look for every unfortunate incident that could occur in our lives. This can lead to a perrenial habit of negative thought. Thus, you need to control your mind and make it see the best of every situation. This can be achieved by seeking growth and aspiring to contribute to others. Investing in the present is the most crucial lesson in Tony Robbins' book.
The Important Take Away
The author has applied strength, energy and dedication in writing this book. He has interviewed investment heavyweights and collected the principles of wealth from them. After that, he compiled them into one of the greatest financial advice books in the world, "Money: Master the Game." Read this book and transform your financial life for the best.