money master the game book summary tells you How You Can Achieve Financial Freedom With the Help of Seven Simple Rules
Do you also want your money to work for you? If this is your thinking too, then you need some good strategy for this. In this book, you will learn how you can achieve financial freedom by investing your money at the right place. In this book you will know how you can invest your money at the right place and enjoy your life with its help.
Apart from an author, Tony Robbins is also an entrepreneur and consultant. He has coached a lot of influential personalities regarding financial strategy.
You can grow your money year after year by using the compound method.
Many times you must have seen that there are some people who just sit throughout the day and do not do any work. Such people become fat and unhealthy while sitting. If we talk about money, then if you leave your money empty like this, then gradually it will start decreasing. To grow money, it is necessary that you put it to work. In this book, you will learn how you can grow your money by investing in different ways using different strategies.
If you invest your money in the right place, then it will give you a sense of financial security. In this summary, we will learn how you can compare your investment with the preparation for the coming seasons in the coming year. How Much Money Should You Earn Before Quitting a Job? And after all, why believing in yourself is the best financial advice?
Is your money working for you? We first asked you this question because there are very few people in the world who have put their money to work. You might not be one of those people. But now is the time to start changing things. Put your money to work. You would think that growing money is a very difficult task. And maybe you are happy with your income.
You may not even be able to save the money you are earning till your retirement, but still you are happy thinking that many more avenues will come out as retirement approaches. But your thinking is wrong.
In India, in the retirement scheme provided by the government, people do not get enough money to spend their retirement without any tension. That is why it is important that you think about your retirement from now and grow your money, put it to work.
The easiest way to grow money is compounding. In compounding, your money grows every year. For example, suppose you invested Rs 1 lakh in a scheme where the interest rate was 10%. So after 1 year the same 1 lakh rupees will become 1 lakh 10 thousand. And then after 1 year, the interest rate will not be charged on the original amount invested by you, but on 1 lakh 10 thousand. This will mean that every year your money will grow.
Let’s talk about Benjamin Franklin for the exam. Franklin died in 1790 and at that time he had invested about $ 1000 in compound interest in banks. After some time, however, half the money was withdrawn from his account. But the rest of the money remained in that account for 100 years. And after 100 years, the money left over from compounding grew to $6.5 million.
Deposit some amount every month in an investment fund.
What is the first thing you have to do if you want to become financially strong? The first rule of financial security is very simple. Keep adding money to your savings. If you do not do this then your financial condition will never improve.
However, saving is not that easy either. People find this boring and painful thing. But you all have to change the way you look at it. Imagine that you are preparing a freedom fund for yourself. Meaning that because of this fund you will get financial freedom. Freedom Fund is like a personal ATM, from which you can withdraw money whenever you want.
Or you can also look at it like a mountain climbing. At first you will find it very difficult to do this, you will feel that it is very boring. But when you will reach the top then you will realize how hard you have worked and what is the result you have got. It is very important to add money to the Freedom Fund. Even if you are short of money, you still have to add money to the Freedom Fund, even if it is a small amount. You have to cut down on the little things.
For example, if you have dinner out twice a week, then do it only once. Instead of ordering pizza, you should cook something at home. These small adjustments can give you a lot of relief later.
Try to make a goal in the beginning that you have to save 10% of your income. Initially it will be difficult but later you will start seeing its positive results. If you are looking for 10% more then you can start with 5%.
Do not invest anywhere by seeing unnecessary advertisements, first research and then select the best place for investment.
Whenever it comes to investment, the first fear that comes in the mind of people is that if they invest in the wrong place, what will be the result. Sometimes people also think that they should hire a financial professional for investment.
But you always have to keep one thing in mind and that is that no finance expert can tell you what is best for you and your money. Whether you have profit or loss, the finance expert has to get his fee. Their job is to sell you the scheme, whether it is good or bad. Many people also invest in mutual funds. Mutual funds have very high fees.
If you think carefully, you will realize that if fees are separated from the returns coming from mutual funds, then there is not much profit.
Therefore, if you also want to make a successful investment, then you have to keep some important rules in mind.
The first rule is to believe in yourself. If you don’t believe in yourself, you will definitely fail. The second rule is to do research according to your income. Never believe what you hear. Do your research to find out which scheme is best for you.
Another thing you can try is to check if you can follow those people by taking knowledge about investments made by successful people.
And last of all be careful, don’t think that you can beat the market because very few people can do that. Give your best and always remember that there is no simple way to success.
Do you have any kind of financial goal or are you just living your life in a simple way.
How much money do you think a person should have to be completely free from financial stress? The answer to this question must be coming in your mind that Unlimited. The very first thing that you have to keep in mind is that never set a goal which is impossible for you to achieve. Let us tell you about five types of goals that will bring your life on a new track.
The first goal is to generate enough money from your investment fund to cover the basic things of your life like rent, food or transportation.
Set the second goal to generate enough money so that you can do some fun apart from your basic things. Like family holiday or entertainment.
The third and most important goal you can set is that you are completely dependent on the money that you are getting from compounding. With this, you will be able to avoid financial stress completely.
Keep the fourth goal in your mind that do not completely depend on your investment funds. Keep working and keep your earning constant so that your lifestyle can be better.
And the last goal is to achieve financial freedom. Meaning you can do whatever you want to do according to your mind. Be completely free from money problems.
Think about these goals and decide the most suitable goal for you. This is because until you know what you want to achieve, you will be confused. Therefore, decide how much amount you need in your investment fund because only then you will be able to decide how and how much you have to invest.
The road to financial freedom is a slow one, but you have to continue, not give up.
Whenever a person tries to achieve financial freedom, initially he has to face a lot of difficulties. But it is important that that person keeps putting continuous effort and does not give up.
You will see many such people who will save more money than you and many times you will also feel that your income is not enough that you can also save. But try not to discourage all these things from you. You have to ignore the voice inside you that is telling you to give up. However, self doubt is not the only thing that will stop you from achieving financial freedom.
Even short term thinking sometimes distracts people. Sometimes people overestimate what they can achieve in a year, but at the same time they overestimate what they can achieve in the next 10 years.
You have to avoid this thing. If you can’t achieve your goal in the first year, don’t stop, keep trying.
There are a few things to keep in mind as you move towards your goal of financial freedom. First of all, change your lifestyle and invest only when you feel that you will get good returns. A good rule is to invest only when you feel that you can earn five times more.
And the most important thing is to try to reduce your tax burden. Talking about the United States, every person there pays about 54% of his income in tax. So you have to reduce this thing.
To make full use of your Freedom Fund, diversify your investments and keep things balanced.
Diversity is very important in the field of investment. You have to invest in different financial schemes where there are different types of risks. Let us tell you those three areas where the main focus of your investment should be.
The first thing is security. This means that the most important investments should be made where you feel most secure, whether or not that investment gives you the most profit or not. For example, you can invest in bonds because the value of the bonds never depreciates, although bonds do not provide high returns but are risk free.
The second thing you have to pay attention to is growth. Here you can take the risk. You invest in a place where you think you will get higher returns, but in such a situation, you may also make losses. For growth, you can invest in the fields like stocks, equities. Last of all your concentration should be on your dream. Here you can invest the profit of the rest of the investments. Investing in your dream will improve your lifestyle.
Always remember that the main motive behind achieving financial security is that you can enjoy your life to the fullest. So if you don’t invest on your dream then all the rest of the investment will be of no value.
Now if you are thinking that how much money you have to invest in the three areas mentioned above, then you have to think according to your how much is your income and what is your dream.
You can also invest by taking advice from smart investors, but you have to keep yourself ready for bad times.
If you want to get success in a field, then you can learn by watching the people who have been successful in that field before. This can also be done in the field of finance. If you learn by watching successful investors, you will have a good chance of achieving your goals.
Ray Dalio is a good role model. He formed the world’s largest hedge fund. Dalio’s investment plan is known as All Season Allocation. With its help, you can also learn investment.
The economy also keeps on changing continuously. You can learn how to survive in a changing economy with the help of Dalio’s investment plan.
According to Dalio you should invest 7.5% of your assets in Gold and 7.5% in Commodities. Both of these are kept in the list of good investments. After that you can invest 30% of your remaining assets in stocks because here you have high growth chances. After that you invest 55% in bonds where the risk is lowest.
And yes you can follow anyone for investment but always keep yourself ready for bad times. If you follow all these things properly and invest wisely till you will move closer to financial freedom.
If you really like this “money master the game summary” by Growthex then you can also check out some more amazing posts | summaries which are freely available on this platform :