Do you want to learn how to manage money and make it work for you?
From this book, you know the steps you need to take in order to achieve true financial freedom.
It doesn’t matter if you are at the beginning of your career or are already approaching retirement, the MONEY book will give you powerful tips on how to save and invest money in order to live the life you want to live.
Anthony Robbins is a best-selling author, entrepreneur, and consultant. Through his coaching on business strategies and financial management, a huge number of influential people of our time passed, including presidents, company leaders, and celebrities.
This book is available as:
What Steps Must Be Taken to Achieve Financial Freedom
What happens to people who spend days on the couch doing nothing?
They get fat
Curiously, but with money, everything happens exactly the opposite. Leave them lying idle – and you will find that they are becoming smaller and smaller. In order to make even a lot of money grow – you need to stir them up and make them work!
From this book, you will learn how to turn a small stash into a mountain of money, which will allow you to live the life that you dream about. The right investment strategy always comes with financial security, and if you act wisely, you will never have to work again!
You will find out:
- How the seasons will help you determine the right investment strategy;
- How much money do you really need to save before leaving work; and,
- Why the best financial advice you can get is to believe in yourself.
Capitalization Will Ensure You Constant Capital Growth Year After Year
Is it hard to make money work for you? If you are like most people, your money is likely to do nothing for you at all. They lazily lie on their bank accounts and grow only by a few percentages – if at all.
So it won’t work. Our goal is to make money work hard for us, especially because we are unlikely to be able to rely on traditional methods of savings in the future.
It may seem that making money grow quite difficult. Perhaps you are comfortable with your current income, and even retirement is not particularly scary, because you are hoping for help from the state or the pension fund in the future.
Unfortunately, this is not the case. In many countries of the world, pension systems have collapsed. In the US, for example, the 401k retirement savings system was originally created as a source of additional income for retirees, but for most Americans, it is now the only source of money you can rely on.
Other pension systems were badly damaged after the 2008 financial crisis, and many who were saving their savings lost large sums of money.
You can avoid this if you make your money work for you through capitalization.
Capitalization means that your money is constantly increasing by adding an annual interest to it. Let’s say you invest $ 100 and thus get $ 10 profit annually. If you do not touch this money, next year you will receive 10% from 110 dollars, then from 121 dollars and so on.
When Benjamin Franklin died in 1790, he left $ 1,000 in Boston and Philadelphia. He warned that this money should be invested and not be touched by it for 100 years.
After this time passed, half a million was withdrawn from the account, and the remaining money lay intact for another hundred years. And by that time, this amount had turned into 6.5 million dollars.
Invest a Certain Amount Every Month, Even a Very Small Amount
So, if you want to achieve financial security – where to start?
The first rule of financial security is quite simple: add money to your savings. In a different way, your situation simply cannot improve.
Saving money is not easy, but try not to treat it as a boring and unpleasant duty. Imagine that you are putting aside your freedom in the foundation, laying the foundation on which your freedom will subsequently be built.
Your Freedom Fund is your personal ATM, the place from where you can always withdraw the funds you need. At first, you do not need to have a lot of money there – even small amounts will gradually increase.
Treat it as if you are climbing a mountain. At first, it’s difficult and it seems that you don’t get anywhere at all. But when you reach the top – you suddenly understand why you tried so hard!
The increase in your Freedom Fund is so important that you need to continue to do this, even if you think that you don’t have enough for it now.
Always put off at least a little in this fund. Think about whether you need dinner at a restaurant today? Maybe it’s better to order pizza or cook it yourself? By adjusting your plans a little, you can afford to postpone more.
And fortunately, as we have already seen, the possibility of capitalization will provide you with better results, depending on how much money you add to your investment.
Ideally, you should strive to set aside 10% of your income, although at first, it is quite difficult. But even if you can save 5% or less, you will still get a small but pleasant profit from interest.
Do Not Believe the Myths About Investing – Do It Yourself and Find the Best Places to Invest Money
Any conversation about investing instantly includes a wake-up call in your head: “What will happen if I fail to invest the money?” Or “Maybe it’s better to hire a professional to manage my investments?”.
Professional investors really cannot know what will be best for your money. Some people allow stockbrokers to manage their investments, but it’s important to remember one thing. Brokers are paid for transactions regardless of whether they turned out to be profitable for you or not. Their job is to sell you, regardless of whether it will be useful to you or not.
Other people invest in mutual funds or similar options under the guidance of professionals. However, there are often many hidden fees and charges in these forms of investing. When you calculate how much you will need to pay all kinds of commissions and the average return on your investments, it will become obvious that such funds are not the best financial solution.
There is only one category of experts you can trust: trust agents. These are professionals whom the law obliges to take care of your interests (unlike brokers). This means that the advice of these people can be trusted.
In addition, you can learn how to invest yourself if you remember a couple of important rules.
- The first rule is to believe in yourself. If you are pessimistic, you are doomed to failure.
- The second rule is to try to study the topic of investing yourself. Do not blindly succumb to other people’s persuasion or myths. Find for yourself what you need. Try to look at examples of other successful investors and see if you can do the same thing as these people.
- Finally, be careful. Do not imagine that you are able to outwit the market – very few succeed. Do your best, but remember that the road to success is never easy!
You Only Want to Close Your Basic Needs or Live the Life That Rich People Live
How much money do you think you need in order to completely free yourself from financial stress?
A couple of hundred dollars, maybe a few thousand or even a few million?
The first thing you should remember is to treat everything realistically. Do not tackle goals that you cannot achieve. But goals should depend primarily on you and your aspirations.
Here are five different goals to help you determine how far you want to go.
- Goal # 1: money from investing (passive income) should close your basic monthly bills, such as renting an apartment or a mortgage, food, utilities, transportation.
- Goal # 2: passive income closes your basic accounts plus things like new clothes and entertainment.
- Goal # 3: passive Income provides you with financial independence. This means that you live entirely on interest, and you never need to work again. The average annual cost of an adult is $ 34,688; if you want the interest to bring you just that amount, your savings should be about 640 thousand dollars.
- Goal # 4: your investment not only frees you from work but also gives you the opportunity to improve your life style. You can afford to dine at more expensive restaurants and relax more luxuriously.
- Goal # 5: Absolute financial freedom. This means that you have enough money to do whatever you want – at any time.
Think about these goals and determine which one best matches your own dreams and aspirations.
If you do not have a plan, you may feel dejected or confused in the details. But when you know exactly what you are striving for, it will be much easier for you to achieve this.
When you determine how much you need to ensure financial freedom, it’s time to start thinking about how and where to invest money.
The path to financial freedom can be very slow at first. But don’t give up – time works for you
When you begin your journey to financial freedom, at first it will be very difficult for you – but do not give up!
You Can Achieve Financial Freedom, Only for This, You Need to Regularly Work to Achieve It!
On your way, in any case, you will encounter other people who manage to save more money than you do, and there will be times when it seems to you that your income is too small to save.
Do not let such things crush your aspirations! Ignore this inner voice, which will persuade you to give up.
Inner doubt is not the only thing that can bother you. Another thing that often bothers people is thinking in the short term. Many people overestimate what they can achieve in a year, but often underestimate what they can achieve in ten years.
If you do not achieve your goals in the first year, continue to work – everything will come with time.
And while working on creating financial freedom, keep in mind a few tips.
First, accelerate your pace by changing your lifestyle. Do not wait until you retire to start saving. Start doing it now, find a way to save on paying mortgages, paying electricity and taxes.
In addition, invest only in those areas in which there will be a good return – so that capitalization makes sense. A good rule here is to invest in order to subsequently receive five times more. Even if you get not five times more, but only three as a result, you will still make good money.
Finally, always try to reduce the amount of taxes you pay.
The average American pays 54.25% of his income in taxes.
Set a goal to reduce this figure.
In order to get the most out of your Freedom Fund, use several types of investments and keep a balance between them.
So, after you set aside enough money to invest in the Freedom Fund – what’s next?
The Key to Wisely Investing Money is the Ability to Vary Your Investment.
You need to invest in various financial products with different levels of risk.
There are three areas – we will call them baskets for simplicity of the metaphor – in which you should concentrate your savings.
The first basket is the Security basket. This is where your investments are protected in the most reliable way, although they do not bring a lot of profit. Here you can use, for example, bonds. Although they do not bring much profit, at least they do not lose their value.
The next basket is the Growth basket. It includes investments associated with a certain share of risk, but it is here that you can count on the greatest profit. Here you can invest in company stocks or stocks. But keep in mind that stocks can both increase and lose their value in the market.
The last basket is Dream. Here you collect all the profits you get from the other two baskets. It is this basket that will allow you to improve your lifestyle.
Remember: your ultimate goal in achieving financial independence is to spend money the way you want. If you do not have a dream that you are willing to invest in, then saving and investing are pointless.
So, how much money to invest in each of the three investment baskets? It depends on your experience, on how much you are willing to take risks, how solid your financial situation is in general, and what you want to achieve in life.
Strive to keep everything balanced. You will lose and receive money, so always make sure that each basket contains the optimal amount of money.
Consult experienced investors and get insurance against difficulties.
If you want to achieve success in something, it is very useful to learn from people who have already achieved what you are striving for.
The financial sector is no different. If you can analyze and model what other successful investors do, you will have a much better chance of achieving your goals.
Ray Dalio is a good role model. He founded the world’s largest hedge fund, Bridgewater Associates. Dalio’s investment plan is known as Seasonal Distribution. Thanks to this plan, money can be received regardless of the financial situation in which you are.
The economy goes through different seasons and periods of development – like the seasons. Seasonal distribution strategies teach you how to make money regardless of changing market conditions.
For example, if you place 7.5% of your assets in gold and 7.5% in other precious metals – they will still bring you money even in times of high inflation.
You invest 30% in stocks (especially during periods of rapid growth – at this time you can earn even more). And finally, you invest 55% in bonds – this path is safe and almost risk-free.
Also, no matter what method you choose, provide yourself insurance.
Turn part of your savings into annuities – financial transactions that enable the insurance company to guarantee you regular payments from a certain point in time. This will help you ensure a guaranteed lifetime income.
As soon as you deal with the Seasonal distribution and secure your insurance income in the future, you will embark on the path to achieving financial freedom!
Money alone will not make you happy – only what you do with that money matters. Large amounts in bank accounts will not make you happy, but if you manage this money correctly, this can bring you happiness. Therefore, remember: you are working to spend money on something that will bring you pleasure or make your life meaningful. Do not forget that your ultimate goal is not accumulation on your own, but what you will spend it on!
Anyone can achieve financial freedom, of course, if one is fully committed to the business, he will be ready to save money and follow the necessary steps. Follow this path, even if progress is slow at first.
Invest in a variety of ways, look for people whose advice you can trust, get ready for the financial “seasons” and provide yourself with insurance. If you work hard enough, you can really take control of the money and start living the life you dream about.
Do not forget about your ultimate goal: to spend money on what you want.
Why You Should Read “MONEY Master the Game”?
- To become financially independent
- To start better manage your finances
- To get tips on how to get rich – from billionaires
This book is available as: