Based on large-scale surveys and personal interviews with more than 50 of the most brilliant financial minds in the world, from Charles Schwab to Steve Forbes — Tony Robbins has created a simple plan of 7 steps that can be used by everyone to achieve financial freedom for themselves and their families.Book summary Anthony Robbins "Money. Master of the game":1) Adopt the most important financial decision in lifeDecide to defer a certain percentage of the earnings to your Fund-of-freedom( 10, 12, 15 or 20 percent).
Your financial future depends on your ability to systematically save enough money. The saved amount will increase by using investing in a geometric progression using the amazing power of compound interest.
The minimum percentage that is recommended for delay — 10%, but if now it is difficult to do — start with 3-5% and plan that will increase the percentage by increasing your income.
Master key — make sure that the savings accumulate automatically
(e.g., agree with the Bank that when you receive money in your account a certain percentage transferred automatically). The best way to save money is to never hold them in his hands.
2) Become an insider: learn the rules before you join the game.
There are many reasons which prevent the investors to make money. The whole system is littered with minefields that can undermine your financial future. Therefore, it is necessary to have the knowledge that will protect your savings and maximize your ROI.Highlights:
3) How much is your dream? Make sure gain is possible.To achieve success requires maximum clarity.
- 96% of mutual funds with active management are not able to outperform the market for 10 years. And in the remaining 4% every time enter the different funds!
- Follow the advice of Warren Buffett: "the average investor does not even have to try to choose winning stocks — it will fail them or their "helpers." Your goal is to invest in whole sectors of the economy, which together will necessarily have good results. This task is able to solve a cheap index Fund S&P 500"
- Profitability figures, which you can see in the funds is wrong!
- The broker acts in the interests of the company and not in your best interest! Therefore, use the services of an independent financial adviser.
- Myth: "if you increase the return on the investment always increases the risk". There are tools that allow you to earn a substantial amount of money when the market is growing and nothing to lose when it declines.
- Fees funds over time, eats on average up to 60 percent of your income! There are many well-disguised taxes and fees. Doing transactions through mutual Fund costs an average of 3.17% per year. When using index Fund S&P 500, the Commission will be only 0.14%.
Find out calculate how much money you actually need to achieve financial security, wealth or absolute independence.
I usually find that financial freedom is several times closer than you thought!
- Count the number of monthly expenses and multiply by 12 to get the number of expenses per year.
- Multiply by 20 the number. The result here is how much you need to accumulate on account of the freedom to provide lifetime income covering all your expenses and to achieve financial security, prosperity or absolute independence (depends on what case you have calculated your monthly expenses).
Or did you first thought about it, calculated and now are horrified by this figure?Below are 5 factors that accelerate the achievement of your financial goals:
4) Take the most important investment decision in your life.
- Save more. Begin to defer a greater percentage with increasing income. Analyze all the possible ways to save. You have expenses, from which you can easily give up?
- Earn more. Find a way to increase his value on the market and do for people more than anyone can expect. Then your life and income are such that you want.
- Reduce taxes and fees costs.
- Get more yield. The multiplication by 20 of the annual expenditures made in the calculation for minimum investment returns of 5% per year. Is it possible to earn more income without undue risk?
- Change lifestyle for the better. You haven't thought about moving to another place where life is cheaper, but better? In different places and also different taxes, which you can save your money and direct them into investment, ensuring your family's financial security and freedom.
You already took the first step and set aside a percentage of income? Well, you're in the game! But now you need to stay in this game for a long time and gradually prosper.
The decision on how to allocate assets.
5) Create a lifetime source of income.Advantages of all-season podkhoda:
- Distribute assets so that not to lose too much in any case.
- Divide the assets according to the degree of securityto some of your money has always been protected. When the other part will bring you more money, but also can range from state of the market.
- Invest always the same amount of money regardless of the market condition. Remember that trying to guess the "right" moment never brings success. If you constantly put the same amount of money, you buy more units on the decline. This means even if the rate of return to the previous level where it was 10 years ago, you still make money!
- Perform a regular rebalancing of the portfolio. Themselves or from an independent financial Advisor. At least once a year. It is very necessary to optimize revenue and minimize the risk of volatility.
Explore the essence of an all-season approach to ray Dalio and apply it in practice. Over the past 30 years, this tactic showed a yield of 85 percent of cases and only four brought losses, where the largest did not exceed 3.93 percent. The average annual yield over the past 40 years has been just below 10 percent, after payment of the fee (9.72 per cent, to be precise). We are talking about real income and not restated for inflation.Revenue insurance:
Determine what annuities are best for you given your age. Consider purchasing a hybrid annuity or the use of strategies that provides opportunities for market growth and protects against losses when it is falling.Secrets of the super-rich:
Explore the possibility of reducing achieve financial freedom by 30-50 percent due to the life insurance policies that provide tax benefits.
6) Invest money as 0.001 percent of investors
Take a moment and read a short interview with twelve of the most prominent financiers of the world and the greatest investor in history. They are given at the end of the book Anthony Robbins "Money. Master of the game. 7 simple steps to financial freedom".The balance of risk and benefit must always be at least 1:5.
That is, in worst scenario you will lose $ 1, and with good will earn $ 5.
What can you do today to invest as 0.001 percent of investors?
7) go for it, enjoy your life and share with others!The future is better than you can imagine.
Together with the constant development of technology to improve the quality of life of every individual. Everyone knows Moore's law of doubling computer performance every 18 months. But such rapid progress is also occurring in many other areas. The UN says more than 3.4 million people die each year from diseases associated with lack of potable water. But now an Israeli company "Water-Gen" produces the device, producing water from air at a cost of 2 cents per liter! Using these and similar devices water shortage in poor countries can be eliminated in the near future. Features of medicine in the coming years will significantly increase the human lifespan. It is now possible to create fully functional organs and transplant them into patients. The range of bodies which is impossible to do constantly increasing.Life is a continuous development, giving the opportunity to share with others.
Conducted studies again and again prove the fact that people feel much happier spending money on others than on themselves. And in this case the feeling of happiness to last much longer.
Scientists from Harvard University Elizabeth Dunn and Michael Norton-based experiments show that people experience more satisfaction spending money on others and not on yourself. And it's not just about subjective feelings, but on objective indicators of health.In other words, giving money to others, you become not only happier but healthier, too.
According to the latest data, over 120 billionaires have given at least half their fortune to charity.
John Templeton, the largest investor, said Anthony Robbins that never met in my life not a single person who would have paid 8-10% of all their earnings to charity, and in 10 years there would be a damn rich man.
Therefore, use 10% of their income to charity, help others and you'll not only feel more happy, but also quickly gain financial independence and freedom.published
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