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A review by ashleywantsbooks
MONEY Master the Game: 7 Simple Steps to Financial Freedom by Anthony Robbins
5.0
I have a really deep appreciation for the financial lessons that are found within this tome. Thankfully, I read the kindle version so I have access to all my 300+ highlights and it fit comfortably into my purse to be toted around everywhere during the 10 days I read it. Unrelated, I got it from the digital library, so I got all the information for free, but it's totally worth the $14 to purchase either the digital or paperback version and have it available for reference whenever you need a refresher, or are ready to move on to the next step in your financial plan. I have made an extensive study of financial advice as a financial coach and I have learned more from this book than many other books combined. My one complaint is that Tony does a lot of alluding to 'later on in the book I will show you' - there's a way you can do that without making it frustrating for the reader, and he made it frustrating for the reader every single time. Don't mention the thing if you're not going to explain it right away, or at least give a chapter reference for where it will come up later so that the reader isn't constantly expecting the explanation to come, or can skip ahead to the explanation as needed.
A big reason I really like this book is because he interviews major financial players in the game, persons who manage millions or billions of dollars, and condense their advice for concise and easy consumption. I realize that one can go online and do some google searching and figure this out, but it's really nice to have them all in one place, being able to see how their plans are alike or different, and how they could work together as you form your own personal financial plan. Because it condenses the money views of so many financial superstars, it's the perfect beginner's book to learn the philosophies of investing and the many ways one can start. It's a great starting point if you really want to dig deep on one investor's philosophy over another's, and you don't have to then 'waste' your time and efforts doing research that you realize doesn't suit your personal investment ideals. I really like how he hits on diversification, not just by talking about different types of stocks or mutual funds, but by discussing bonds and bond funds, real estate and real estate funds, and most especially annuities - something many financial experts don't consider a worthwhile investment option.
The part of the book that REALLY resonated with me was when he talked about your personal magic number. The number of dollars that you feel you need to have invested to live the life you have always dreamed without HAVING to work for your lifestyle or having to reduce the principle. I wrote down a number as a note in my kindle, it's right there at the highlight. The number is ridiculously large. Tony then goes on to explain that there isn't just ONE magic number per person, but five! Those numbers are Financial Security, Financial Vitality, Financial Independence, Financial Freedom, and Absolute Financial Freedom. Financial Security is when your investments provide you with enough money to cover your basic living expenses. Financial Vitality provides you with your living expenses plus some of your luxuries, the things that make life worth living. Financial Independence is the cost of all your living expenses - usually slightly less or right at what most people make in job income a year. Financial Freedom is where you get to live your same lifestyle just elevated. And, finally, Absolute Financial Freedom is your big fat magic dream number. He goes on to explain how to calculate these numbers, by starting at the smallest one and then guesstimating up for each following level. I have my numbers written down in my daily planner and can take them out at any time and place to remind me of my goals. Your big number, is probably way less than you think it's going to be. Mine was. How to calculate is thus: Let's say my financial security number per month - all my living expenses: rent, food, utilities, transportation, insurance, and basic clothing (yes I know we didn't talk taxes that's too involved for this discussion we're guesstimating here)- is $4000. $4000 x 12 months is $48,000. Assuming a 5% annual rate of return on my invested money (which is a rather risk averse and conservative average), I take the $48,000 and multiply it by 20 for $960,000. You can double check your math by taking your big number, multiplying that by .o5 [5%], to get your Financial Security number. I'm not saying that's a small amount of money, but that's not as big as you were probably imagining was it? These are the doses of reality everyone needs to realize that you have to get your financial house in order, have a security fund for emergencies, then get yourself to investing. This book will help you create the investment plan in which you are comfortable, and allow you to learn how to do it yourself or give you the power to find the affordable help you need to get there.
A big reason I really like this book is because he interviews major financial players in the game, persons who manage millions or billions of dollars, and condense their advice for concise and easy consumption. I realize that one can go online and do some google searching and figure this out, but it's really nice to have them all in one place, being able to see how their plans are alike or different, and how they could work together as you form your own personal financial plan. Because it condenses the money views of so many financial superstars, it's the perfect beginner's book to learn the philosophies of investing and the many ways one can start. It's a great starting point if you really want to dig deep on one investor's philosophy over another's, and you don't have to then 'waste' your time and efforts doing research that you realize doesn't suit your personal investment ideals. I really like how he hits on diversification, not just by talking about different types of stocks or mutual funds, but by discussing bonds and bond funds, real estate and real estate funds, and most especially annuities - something many financial experts don't consider a worthwhile investment option.
The part of the book that REALLY resonated with me was when he talked about your personal magic number. The number of dollars that you feel you need to have invested to live the life you have always dreamed without HAVING to work for your lifestyle or having to reduce the principle. I wrote down a number as a note in my kindle, it's right there at the highlight. The number is ridiculously large. Tony then goes on to explain that there isn't just ONE magic number per person, but five! Those numbers are Financial Security, Financial Vitality, Financial Independence, Financial Freedom, and Absolute Financial Freedom. Financial Security is when your investments provide you with enough money to cover your basic living expenses. Financial Vitality provides you with your living expenses plus some of your luxuries, the things that make life worth living. Financial Independence is the cost of all your living expenses - usually slightly less or right at what most people make in job income a year. Financial Freedom is where you get to live your same lifestyle just elevated. And, finally, Absolute Financial Freedom is your big fat magic dream number. He goes on to explain how to calculate these numbers, by starting at the smallest one and then guesstimating up for each following level. I have my numbers written down in my daily planner and can take them out at any time and place to remind me of my goals. Your big number, is probably way less than you think it's going to be. Mine was. How to calculate is thus: Let's say my financial security number per month - all my living expenses: rent, food, utilities, transportation, insurance, and basic clothing (yes I know we didn't talk taxes that's too involved for this discussion we're guesstimating here)- is $4000. $4000 x 12 months is $48,000. Assuming a 5% annual rate of return on my invested money (which is a rather risk averse and conservative average), I take the $48,000 and multiply it by 20 for $960,000. You can double check your math by taking your big number, multiplying that by .o5 [5%], to get your Financial Security number. I'm not saying that's a small amount of money, but that's not as big as you were probably imagining was it? These are the doses of reality everyone needs to realize that you have to get your financial house in order, have a security fund for emergencies, then get yourself to investing. This book will help you create the investment plan in which you are comfortable, and allow you to learn how to do it yourself or give you the power to find the affordable help you need to get there.