Smart thoughts about investing and the use of money. A must-read for anyone who struggles with money or long term financial planning. Written in the verbose Tony Robbins style you know and love, this book stays on message and is packed with practical advice. Page numbers below correspond to the hardcover edition. Interjections from me personally are contained in [square brackets].
“… psychology, time management, history, philosophy, physiology. I wanted to know about anything that could immediately change the quality of my life and anybody else’s.” P19
Biographies of leaders, thinkers, doers – Abraham Lincoln, Andrew Carnegie, John F. Kennedy, and Viktor Frankl.
The book is laid out as “Seven Simple Steps to Financial Freedom,” which are outlined in the checklist at the book’s end. Here are the steps, which correlate to the 7 sections in the book:
1. Make the most important financial decision of your life
2. Know the rules before you get in the game
3. Make the game winnable
4. Make the most important investment decision of your life
5. Create a lifetime income plan
6. Invest like the .001%
7. Just do it, enjoy it, and share it
Step 1: “Make the most important financial decision of your life” [The decision to automate the transfer of a percentage of all income you ever receive into your freedom fund (retirement account)].
“Find a way to do more for others than anyone else does. Become more valuable. Do more. Give more. Be more. Serve more. And you will have the opportunity to earn more.” P6
“People who succeed at the highest levels are not lucky; they’re doing something differently than everybody else.” P9
“Money is simply a behavior for trying to meet our needs.” P74
“If we get underneath what you’re really after, it’s not money at all. What you’re really after is what you think money is going to give you.” P75
The fastest way to fill base needs [thrive] is to “… find a way each day to appreciate more and expect less.” P79
Step 2: “Know the rules before you get in the game”
This section is an in-depth review of the technical concepts that shape the battlefield of modern investing. Definitely worth the read because it truly would be impossible to successfully navigate the field of play without knowledge of the pitfalls that await you.
“Never again will you tolerate the “herd” mentality in your own life.” P104
By law a broker is only required to provide “suitable” advice. P125
Fiduciary – registered financial advisor, legal fiduciary, registered investment advisors (RIA) – by law must remove or disclose conflict of interest.
Fiduciary selection criterion: P132
1. Make sure registered with state or SEC as registered investment advisor or is an investment advisor representative (IAR) of a (RIA)
2. Percentage fee is only fee
3. Make sure they are not compensated for trading stocks and bonds
4. No affiliation with broker-dealer
5. Hold money in reputable 3rd party such as Fidelity, Schwab, or TD Ameritrade
Directory of fee-based advisors P132
“You never know who’s swimming naked until the tide goes out.” – TR P161
“You get what you tolerate” Learned helplessness devours if it is tolerated
“Most people start out with high aspirations but settle for a life and lifestyle far beneath their true capabilities.” P199
Next time you come up with a reason why you can’t do something, call bullshit on yourself. “Change your state. Change your focus. Come back to the truth. Adjust your approach to go after what you want.” P199
Step 3: Make the game winnable
Anchor your dreams to to an actual number.
Do the math! [This section walks you through the calculations step by step.]
Ultimate truth: “Life is not about money, it’s about emotion.” P209
Money itself is not the goal.
Places money takes us, freedom, and time are what really after.
Take a moment to consider what you want your money to buy.
“There is only one thing that makes a dream impossible to achieve: the fear of failure.” – Paulo Coelho
You are the creator of your life.
“Wherever focus goes, energy flows.” TR p227
“It’s not conditions but decisions that determine our lives.” P244
“It isn’t about money. It’s about choice; about freedom. It’s about being able to live life on your terms, not anybody else’s.” P245
“Find your gift and deliver it to as many people as possible.” P246
“What you get will never make you happy; who you become will make you very happy or very sad.” – Jim Rohn p246
Rule of 72
Section 4: Make the most important investment decision of your life
Asset allocation is the most important tool you have.
Division of investment:
A. Security bucket: sanctuary of safe investments; unshakable core; aversion to risk P300
B. Risk/growth bucket
C. Dream bucket
“Your dreams are not designed to give you a financial payoff, they are designed to give you a greater quality of life.”
“When you give your all, the rewards are infinite.” P343
“So much of what makes us wealthy is free” TR P347
“The secret to wealth is gratitude.”
Step 5: Create a lifetime income plan
This section includes an asset allocation presented as the All Seasons Strategy, which is crafted from Ray Dalio’s reply to: “What kind of investment portfolio would one [average investor] need to have to be absolutely certain that it would perform well in good times and in bad — across all economic environments?” There is a much more in depth backstory to Ray and his elite, ultra-successful fund the All Seasons Strategy is based on. In short it give you a recommendation on how to evenly balance the risk faced in each of the 4 economic “seasons.”
Develop a modus operandi to expect surprises P372
“Expect surprises” – Ray Dalio
Always be asking: “What don’t I know?” – Ray Dalio
Step 6: Invest like the .001%
This section includes interviews from 12 investing thought leaders with proven track records of peak performance. Many of their reccomendations had common themes.
Four obsessions of self made billionaire investors: P455
1. Don’t Lose.
Focus on protecting downside at all times; defense is 10x importance of offense.
2. Risk a Little to Make a Lot.
3. Anticipate and Diversify.
Research till certain then still anticipate failure case & diversify against it.
Brilliant people are terrible investors if they are not prepared to make decisions with limited information.
4. You’re Never Done.
Earn, learn, grow, give.
Keep your hunger.
To whom much is given, much is expected.
Life is really about what you have to give.
Step 7: Just do it, enjoy it, and share it
“Happiness is not something ready-made. It comes from your own actions.” Dali Lama XIV
“Wealth is the ability to fully experience life.” Henry David Thoreau
Our decisions control the quality of our lives. We make 3 key decisions every moment of our life. Most make these unconsciously. Make these decisions consciously and you can literally change your life in an instant: P577
Decision 1: What are you going to focus on
Decision 2: What does this mean
Decision 3: What am I going to do
“You can’t be fearful and grateful simultaneously.” – Tony Robbins, Money: Master the Game, P584
10 min daily exercise to prime for gratefulness: P585
3 minutes to feel gratitude for things big and small
3 min to [send love by] asking for health and blessings to all you know, love, and will meet
4 min on “Three to Thrive” – three things want to accomplish and visualize them as if completed (including the sense of celebration and gratitude for having completed them).
“Every day stand guard at the door of your mind, and you alone decide what thoughts and beliefs you let into your life.” P585 Tony Robbins paraphrasing Jim Rohn
“Give freely, openly, easily, and enjoyably. Give even when you think you have nothing to give, and you’ll discover there is an ocean of abundance inside of you and around you.” Tony Robbins, Money: Master the Game, P606
Each day “be a blessing in the lives of all those people I meet and have the privilege to connect with.” Tony Robbins, Money: Master the Game, P606