Financial freedom in 7 steps

To have financial freedom you have to control your own money. You need to know how to invest and use it in the best possible way.

In his book, “Money: 7 steps to financial freedom”, Tony Robbins uncovers myths about investments and personal finance.

Learn how to protect money and plan for an advantageous retirement before you grow old. Find out how to invest like a billionaire.

  1. Financial freedom is saving to invest

To achieve financial freedom, you need to determine how much you want to invest and save. It all starts there. However, this decision causes a sense of loss and loss in your lifestyle.

In the next 25 or 30 years, life expectancy may exceed 100 years. If financial life is difficult now, imagine it later. Social security may even cease to exist.

So start saving as soon as possible. Retirement does not represent security and financial freedom.

  1. Financial freedom is in your hands

If you believe that working for 40 years will guarantee your financial freedom for another 40 years, it’s time to think more about what you believe.

From an investment point of view, dreaming about retirement is not worth it. You need to invest your money aggressively.

Maybe, you want to buy an amazing house, a nice car and sport a lifestyle. However, this is not the path to long-term success.

Saving and investing aggressively does not seem so attractive. However, it helps you to sleep peacefully. It is a matter of security.

  1. Know the rules of the game first

The investment market is like a strategy game. You need to know how to use the right cards and plan your victory.

Seek help from a financial advisor. He can accompany and advise you throughout the investment process. Find out all the fees that involve your investment.

If you already have an investment plan for your life, compare it to the rest of the market. Be sure to keep track of your expenses, profits and goals.

  1. The game must be “winable”

True financial success has 5 levels:

  • Financial security
  • Financial vitality
  • Financial independence
  • Financial freedom
  • Absolute financial freedom

Decide how far you want to go. There are people who seek a luxurious life. Others seek a simple yet comfortable life. There is no wrong alternative, it is just your decision.

5 strategies to optimize your personal progress:

  1. Save more money and invest the difference
  2. Earn more money and invest the difference
  3. Reduce fees and taxes and invest the difference
  4. Maximize the rate of return by diversifying your investments
  5. Change your lifestyle and invest the difference
  6. Learn how to put money in the right place

When it comes to financial freedom, all billionaires agree on this point. Asset allocation is the key to financial success and the only way to diversify your portfolio.

It is not enough to own a lot of stocks. It takes a lot of unrelated asset classes: national stocks, international stocks, emerging markets, bonds, real estate, commodities, etc. Put your money in different buckets. If a bucket leaks, you don’t lose everything.

  1. Create a source of lifetime income

Accumulate wealth by investing in low-cost, low-tax, tax-free and well-allocated assets.

Then, convert everything into an annuity that pays you a stream of income every month, so for the rest of your life.

According to Ray Dalio, there are four economic “seasons” that move asset prices: inflation, deflation, growing economic growth and declining economic growth. In this way, assets work well in different seasons.

  • Inflation: commodities, gold and securities protected against inflation
  • Deflation: Treasury bills and stocks
  • Increased economic growth: stocks, corporate bonds, commodities and gold
  • Declining economic growth: Treasury bills and inflation-protected bonds

If we cannot predict the future, the ideal is to invest assets to benefit equally (25%) from each economic “season”.

  1. Invest like a billionaire

Tony interviewed a number of millionaires and billionaires. Through these interviews, Tony synthesized all ideas into four principles.

  1. Don’t waste money. When you avoid losing money, you end up acquiring some of it over time. Keeping is more important than winning. Even starting with nothing, if you are patient, you will have something at the end.
  2. Assess the risk / reward factor: not all investments are risky, and you don’t have to bet everything on just one option.
  3. Anticipate disasters and diversify your investments. Any investment involves some degree of risk, whatever it is. If you spread the risk between different asset classes, you guarantee that a shot will not sink your boat.
  4. Always seek knowledge. People who have achieved success value knowledge. It is essential for your personal and professional growth. Like money, knowledge is composed and built on itself. The more knowledge you acquire, the greater your reward will be. Challenge yourself: learn something new every day of your life. After a while, you will be amazed at what you are able to accomplish.

Bonus tip: Live a rich life

Happiness is not about money. It’s about living life in the best way. Understand that money is just a tool to help you do that.

After all, it doesn’t matter how much money we collect, how we diversify our portfolio, or how many times we beat the market. The important thing is how you improved the world around you.

Instead of money, your goal should be to live a purposeful life. Whatever it means to you. For the vast majority, it is about giving your time, energy and money to others.

 

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