MONEY: Master the Game
This is what 50 of the top investors want us to know about investing.
In MONEY: Master the Game, Tony Robbins has interviewed many of the best investors of our time, and condensed their best advice into this book.
Tony Robbins is a firm believer that, in order to succeed in, well, anything, you need the right role models.
And who better to guide you than the most successful investors in the US such as Carl Icahn, Paul Tudor Jones, Kyle Bass, and last but not least Ray Dalio (these people are the top of the top of investors in the world)
Tony Robbins interviewed all of them before writing this book. That said, here are the 7 main lessons from Money: Master the Game.
Lesson 1: Make the decision to master this area in your life
Commit to self-discipline and mastery over your financial state.
Make the decision to become an investor.
Not just a consumer and commit a percentage of your income towards your own freedom fund.
Pay yourself and put the money aside and don't touch it.
Instead of just letting it sit there and go to waste let the power of compounding grow your money.
Commit to becoming smart with money.
Tony mentioned in the book that the financial state that we live in is a game and the game is rigged and if you don't know the rules of the game, you will always lose win so commit to understanding the rules of the game and win.
Lesson 2: Become an insider
Know the rules of the game before you actually get into the game.
Tony reveals nine myths to become aware of when you're in this process of financial freedom.
One of the myths that Tony debunks is the myth that fees are not important to notice.
The reality is the difference in a fee percentage could be the difference of millions of dollars compounded over time.
Another myth to be aware of is the myth that mutual funds beat the market and that a broker is your friend.
Now your broker might be a really nice guy but they are not legally bound to be in your best interest.
So when you're seeking financial advice, try to find one with fiduciary duty to you (in other words, they MUST put your interest ahead of theirs otherwise they can be sued).
Another myth is the myth that you've got to take big risk for big reward.
Instead imagine if you could take very little risk and have very big reward kind of like a have your cake and eat it too scenario.
If it was possible would you learn it, would you pursue it.
Those are just three of the nine myths to become aware of if you want to win at the game of money.
Lesson 3: Define the price of your dreams
Be specific as to how much money you want, and what kind of do you income you want.
Tony defines finances and two levels the first one is financial security which is just getting by.
Then you have financial vitality, after that you have financial independence which is the level that you no longer have to work for another person, the fourth level is financial freedom which is basically
accomplishing all your bucket list and living the life of your dreams.
The one after that is absolute freedom, where you can do whatever you want whenever you want and contribute as much as you want.
So how can one fund their dreams?
How can one save up this kind of money and move up the financial levels?
Tony explains that you have become more valuable as a person, the more valuable you become the more money you receive and there's five different strategies that are talked about in the book that can accelerate your process of funding your dreams:
Strategy 1: earn more money and invest a difference
There's always a limit to how much you can save.
But the upside is limitless!
The secret to earning more is to do more for others than anyone else is doing.
You don't have to get paid for your time, you can get paid for how much value you contribute.
Strategy 2: reduce the amount of fees and taxes that you have & invest difference
Fees and taxes are like making the ascent to the top with a huge and heavy backpack.
You think that small percentages don't make much of a difference, but over time, they really do.
In fact, a 1.5% difference in fees could mean having 50% less in 30 years.
Strategy 3: save more money and invested difference
The most important part to reach financial freedom is to "pay yourself first".
It's not about what you earn, it's about what you keep.
Tony Robbins suggests that the best way to save is when you don't see the money in the first place.
Strategy 4: maximize the return on your investments
Among the investors that Tony Robbins talked to when writing MONEY: Master the Game, four principles were dominant.
Don't lose. Risk a little to make a lot.
Diversify & Never stop learning.
Strategy 5: alter your lifestyle and invest the difference
Compared to this one major decision, every saving effort is kind of like being penny-wise and pound-foolish.
Lesson 4: Learn where to put your money
Asset allocation could be the key to your successful investing and asset allocation goes way beyond owning just a variety of stocks it's actually more about owning a variety of unrelated asset classes domestic stocks, international stocks, real estate, annuities bonds, and so on and so forth.
Lesson 5: Create a lifetime supply of income
Imagine what it would be like for you to receive a check for life and that check for life can afford you the life that you've always dreamed of.
It starts by accumulating a mass amount of wealth by investing in low-cost tax-advantaged well allocated investment vehicles followed by converting your wealth into an annuity that pays you a consistent income every single month for life.
Lesson 6: Invest like a billionaire
To do this follow four principles:
- The first principle do not lose money.
- The second principle is to seek asymmetric risk/reward which is high reward low-risk.
- The third is to anticipate financial disasters so diversify your investments.
- And the fourth is to never stop learning.
Become hungry and motivated to consistently become better.
Tony says that the most successful people that he's ever met had a relentless pursuit for knowledge.
Lesson 7: live the rich life
Enjoy the abundant life of your dreams.
Tony suggest pursue satisfying the six basic human needs the need for certainty, the need for uncertainty, the need for love, and connection.
The need for contribution, the need for significance, and the need for growth, and one of the
most important in very fulfilling needs that you can satisfy is to be sure to contribute being the richest man in the graveyard is not the goal.
Our Thoughts from More Money Malaysia
If you really want to live a life with no limits, the lessons from this book are going to get you there.
Like us, Tony Robbins believes that money is just a way to afford your dreams, but first you have to decide what those dreams are and how much it will cost.
Once you know how much it will cost, it's time to start finding ways to get there, which is a mixture of making more, paying less and getting better investment results.
By interviewing billionaires who invest full time, you get a chance to learn from the best.
Although lesson 6 is short, those 4 principles are by far the most important lessons you should know to have success investing.
Now that you know what the main lessons are in Money Master the Game, it's time to get to work.
Step 1: decide what that life it is you want
Take the time to think about everything you want to have, to experience and to make an impact to.
Step 2: have a rough idea as to when you want those experiences and how much it will cost
We are now turning your dream life into goals.
The best way to turn them into goals is to make them more real and have a timeline.
Step 3: determine how much you need to make and invest to get those goals
Now that you know what it is you want in life, it's time to work backwards and see how we can get you there.
You can either do this by hand and excel, or you can go through our Financial Roadmap session to make it happen.
Step 4: Live that life you have set for yourself today and into the future
There's no reason why you have to wait to start living that life.
Start changing your lifestyle now by introducing what it is that you imagine, and taking out the stuff that are no longer as important to you.