Book Review of : Money Master the Game – 7 simple Steps to Financial Freedom by Tony Robbins #1 Bestseller.
Subtitle: Secrets from the worlds greatest financial minds.
Money Master the Game book review like you have never seen it before!! I am going to tell you what Tony Robbins SAYS and the ADVICE he gives in easy, understandable sections. I’m literally going to breakdown his book in parts so if youre thinking of buying his book or youve read it already and you want to RECAP then this is the place to do it!
In this book Tony Robbins(Antony Robbins) writes about the importance of certain critical elements when it comes to making money. They include, in summary:
- Investment and Saving
- Importance of Passive Income.
- Planning Ahead
- Setting Goals
- Learning tips to get you financially free
Now, Im not going to review the WHOLE book in one post because I feel I dont just want to skim over a 600 page book filled with probably the most valuable financial information you’ll ever receive.
I like to do these reviews in chunks so I’m going to talk through the Chapters 1,2,3 to give you an idea about what youre buying into! I do care about you guys!
The book looks closely at investing and is based solely on the US investment market – dont be deterred though fellow Brits, the info is really valuable and principles of investment can be learned from information relating to the US
. The overall theme within these three chapters (and probably the whole book) is INVESTING CLEVERLY. With the secrets he provides you’ll have every useful resource for becoming financially free at your finger tips.
He notes the importance of pensions(401(k) in America and how the age limit for retirement has drastically increased over the years. This means we need more money in our pensions than ever before. BUT, 46% of Americans have not saved enough to sustain them once retired!
He teaches the most VALUABLE investment lessons that can help millions of people plan for their future! He notes, quite comically, that DEATH and TAXES are the only constants in life – investment markets are the same.
He teaches us to face taxes head on and make the most out of money so that when we die we have maximised our assets for years to come after death (you will read a great story about a very important person in history and how he maximised his assets years after his death).
The chapters focus on CLEVER INVESTMENTS and through those never having to work to support your family again.
There are firstly 3 steps to learn:
- Take the first step – invest
- Become an insider( have insider knowledge of the stock market and investment funds)
- Make the game winnable (we are trying to beat the market guys)
- Investment Decisions – these are important( Asset Allocation)
- Dealing with the Upside without the Downside (e.g. making money and keeping it – staying wealthy consistently – it sounds easy but you’ll be surprised)
- Invest like the 0.001%
- Enjoy it!
Chapter 1.3 – Compounding.
Im not going to lie compounding is difficult to understand if youre not a mathematician. (I found this book really helps simplify it or see this Youtube tutorial).However, ‘compounding is such a powerful took that Albert Einstein once called it the most important invention in all of human history‘.
Compounding is the one way to reach financial freedom and subsequent financial goals if you know how to do it correctly. This theme runs through the book – he talks about things we should know or may have heard of but he talks of how to do them correctly.
As this book is written by Tony Robbins(Antony Robbins) you can’t expect anything less than for a section of the book to be about giving to others. Remember when I say sections I am talking about the first 3 which is around the first 200 pages.
In chapter 1.4 Robbins teaches us that we want to achieve our financial and romantic and business and personal goals because we need to fulfil one or more of 6 basic human needs. Which one are you?
- Uncertainty/Variety – to be in control of life
- Significance – to feel like we are significant e.g. frivolous spending.
- Love and Connection – spiritual needs. We feel alive when we love
- Contribution – ‘the secret to living is giving’. The best thing is having enough to give to others.
This book is about 7 steps to financial freedom – it is about money mastery. It is not a story book about success it is an ACTIVE book of KNOWLEDGE that requires you to KNOW and LEARN about what it takes to be financially free.
Section 2: Insider Rules – Knowing insider secrets to investments.
When investing you need to know the loopholes that could cost you money. Tony illustrates with perfect examples of how to learn NOT to get caught up.
Money Power Principles:
- Know the Game.
Think High Cost Mutual Funds, Brokers, Hedge Fund Managers
We need to learn about the accumulation phase(growth of money) and the deaccumulation phase(withdrawing of money).
9 Myths of Investing – Tony Robbins Style.
Tony Robbins SHATTERS the 9 myths of investing. He EDUCATES. I’m going to summarise what these are and how reading this book can help you be in more control of your finances.
- investors BEAT the market – (96% fail to beat the market and only rare ‘unicorns’ which are hedge fund managers succeed e.g, David Einhorn)
- Fees are small. Average cost of owning an investment is 3.17% per year. Knowing the hidden fees investors charge is the difference between being a millionaire and having a few hundred thousand. Fees can cost up to 2/3 of the overall return and of your subsequent savings or retirement plan.
- Returns – what you see is what you get. NOPE. Tony teaches you about time weighted returns vs actual dollar weighted returns. Robbins gives an example. Look at Dow Jones since 1930. Add every number and divide by 81 years = average of 6.31% over time. However the actual return the client gets is more like 4.31% so time weighted returns give for CLEVER advertising.
- Brokers are there to help. Learn the difference between a broker working for someone and a fiduciary working independently. Fiduciaries are Registered Independent Advisors(RIA) brokers are not yet they manage your funds. Robbins uses the analogy of a Butcher vs Dietician. Butchers are there to sell us meat and regardless of what we need they will sell us what they have. Dietitians sell us what we need based on our health and whats best for us. Brokers are the butchers and dietitians are the fiduciary. Which would you pick?
- Tony Robbins teaches about the 401(k). If you’re British you can skip this.
- Target date funds
- Huge Risks = Big Rewards. Educating yourself, becoming an insider will not let big rewards encourage you to be stupid with money.
- The Lies We Tell Ourselves. We need to admit to ourselves that it is us that stops us from getting where we want to be financially. We need to stop blaming other people. We need to look for a better strategy and Tony Robbins does that.
Chapter 3: Whats the Price of Our Dreams.
- Robbins illustrates in the most magnificent way the importance of setting numerical goals(our number or numbers we need to reach for financial freedom) can affect our ability to money mastery.
A man says that his magic number is £1 billion. To achieve his every desire he needs to be a billionaire. Tony asks him what he wants. What that billion would buy him. He wants a jet, he wants an island etc. Tony breaks down the ACTUAL cost of each thing on his list, he gives alternatives to ownership e.g. renting/loaning. He talks this wannabe billionaire through he deepest desires and their numerical value. You know what he ACTUALLY NEEDED to fulfil those dreams? To own an island to fly all over the world at his every whim? £10 million dollars. He overestimated how much it would take him to live his dreams. Tony says that most of us do that and thus never reach our goals.
One of the most mind-boggling, eye-opening facts I have ever learned is this: it will make you think differently about money forever…
One million seconds ago(in the past) is 12 days ago. Guess how much one billion seconds ago were?
One billion seconds ago was not 20 days ago or 3 months ago or one year ago but…
32 years ago.
That is a difference between a millionaire and a billionaire.
I’ll leave you with that thought…
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