Money Master the Game: 7 Simple Steps to Financial Freedom (key points)

Money Master the Game: 7 Simple Steps to Financial Freedom (key points)

Tony Robbins created an absolute masterpiece with his book Money Master the Game: 7 Simple Steps to Financial Freedom

Here is a short review, outlining the most important steps

1. Decide to master the financial area of your life
- commit to self-discipline and mastery over your financial state
- decide to become an investor, and not just a consumer
- commit a percentage of your income towards your own freedom
- fund yourself and put the money aside and don't touch it
- learn the power of compounding can grow your funds
- understand the financial state is a game and the game is rigged
- if you don’t know the rules of the game – the house will always win

2. Learn the nine myths related to money
- important myth is that fees are not important. In fact, fees can result in millions of dollars difference
- be aware of the myth that that mutual funds beat the market
- another myth to consider is that your broker is your friend. The broker is not legally bound to act in your best interest, so if you are seeking financial advice it might be better to go to fiduciary. This guy is legally bound to act in your best interest.
- It is a myth that you got to take a big risk for a big reward

3.  Define a price to your dreams
- be specific as to how much money you want
- understand what kind of income you would play for
- Tony defines 5 levels of the financial state
1. financial security – when you are just surviving with your income
2. financial vitality – where you have some money to put aside
3. financial independence – you don’t need to work for another person anymore
4. financial freedom – accomplishing all your bucket lists and living the life of your dreams
5. absolute freedom – you can do whatever you want and have enough money to contribute to the success of the others

- in order to achieve the level of money, you need to become a more valuable person
- there are 5 strategies to accelerate the process of gathering more money and funding your dreams
1. earn extra money and invest the excess
2. reduce the number of fees and taxes payed
3. save more money and invest the savings
4. maximize the return on investment
5. change your lifestyle and invest the difference

4. Learn how to invest
- assets allocation is the key to your successful investing, and it goes way beyond owning just a variety of stocks
- it is more about owning a variety of unrelated asset classes e.g. stocks, real estate, businesses

5. Create a lifetime supply of income
- start accumulating a massive amount of wealth by investing in low-cost, tax-advantaged well-allocated investments
- follow by converting your wealth into an annuity that pays you a consistent income every single month for life

6. Invest like the richest people
- follow the four important principles
1. do not lose money
2. seek asymmetric risk class reward which is high-reward - low-risk
3. anticipate financial disasters and diversify your investment
4. never stop learning, stay hungry and motivated to consistently improve

- Tony acknowledges the most successful people he's ever met had a relentless pursuit for knowledge

7. Live the rich life, and enjoy the abundance in your life full of money and achieved dreams
- pursue satisfying the six basic human needs
1. the need for certainty
2. the need for uncertainty
3. the need for love and connection
4. the need for contribution
5. the need for significance
6. the need for growth

- the most important and fulfilling need is to be sure to contribute to the happiness of the others. Being the richest man in the graveyard is a wasted life. The secret to living is giving.

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