Do you know what is the most important financial decision of your life? The first of the 7 steps to making sure you become a master of money?
Tony Robbins interviewed the world's top investment experts to distill a system anyone can apply to become financially independent.
And the first step towards a future of abundance is to make a simple decision.
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Ready to go?
The relationship with money and wealth is different for everyone. For some it is a real and own obsession, for others it is a simple tool used in the service of others and of a satisfying life.
You can read these two steps here:
In fact, it doesn't matter what our beliefs are: we never look for money as such.
Rather, we are looking for the emotions and sensations that we believe money can create: security, freedom, power, or contribution.
Tony Robbins is one of my favorite personal development authors. I discovered him during a TED talk: his energy was infectious even through the computer screen!
The book "Money Mastery" introduces the personal finance management system Tony built after distilling advice from the world's top investment experts.
If implemented, this system can achieve financial independence and abundance in 7 steps; once in place, it can run on autopilot, with very little monitoring on your part.
The secret to making money is simple: do more for others than anyone. If you add more value, if you do and give more, if you serve others even more, you can make more money.
Learn to invest
But making money, even a lot, is not enough to become financially independent.
You have to learn to put aside some of what you earn. And even more importantly, you have to learn how to invest that money to make it multiply. It is with the investment that you can make money even when you are asleep.
Starting to invest allows you to go from being a consumer to that of an owner!
The key is to change your mindset and go from a world where you work to make money to a world where money works for you.
Do you think investing isn't for you? That you don't know enough to invest?
In reality, even if subconsciously, you are already a financial investor.
If you work for a living, you are already doing financial transactions: you are trading your time for money.
And from an economic point of view, this exchange is not very beneficial. Why ?
Because you can always have more money, but you can never have more time.
Please note: investing does not mean playing on the stock market !!
Trying to guess what will be the next hit action, wanting to anticipate when cryptocurrencies will rise or fall, offer you less chance of making money than playing poker against the best players in the world .
Stock market professionals can rely on entire teams of experts, use ultra powerful computers and software, which cost millions of euros.
And even with all of this, very, very few of them manage to earn more than just moving the market over the long term.
So what chances can an average investor like you and me have of making money like this?
With such low chances of success, this strategy is therefore not the right one to calmly achieve financial independence.
On the other hand, there is a passive approach, which allows you to get rich while minimizing risk, and which relies on the power of compound interest.
The first rule to get rich
Knowing the right way to invest your money is important, but is only one of the 7 steps to mastering wealth.
As long as you don't know where you can get the money to invest from, if you haven't yet set your financial goals, if you don't know the main rules behind money management, know what is the best investment portfolio doesn't help much.
So what, according to Tony Robbins, is the most important financial decision of your life, the one that is the first step to wealth?
There it is: deciding what percentage of your payroll you are going to keep to yourself.
This corresponds to the concept of paying yourself first: how much money will you save and invest before using a single euro for your daily expenses?
Really take the time to think about it, and decide on a specific percentage: the rest of your financial life will depend on that decision. And the good news is that this, the most important decision you'll make in your financial life, is up to you, and no one else!
What is the right value to choose? There is not a right answer in the absolute. It can be 10%, 15%, even 20%. The correct answer is the decision you are going to make.
If expert advice can be of help to you, they advise setting aside at least 10% of what you earn; in today's economy, 15% or more seems a better choice, especially if you are over 40.
Ultimately, it doesn't matter what percentage you decide, what matters is that you stick to it, when things are going well but also when they are going bad.
You may be asking yourself: but how can I save 15% of what I earn when I hardly have enough to cover my daily expenses?
nobody knows the importance of saving and investing. But when it comes to doing it, we all have good reasons for not doing it.
If you don't commit yourself enough to this decision, you can't move towards a future of abundance. When we analyze our loan expenses, it is often possible to identify ways to save: change your own laptop less often, cancel your subscription to Netflix or Spotify.
Managing to set aside even € 100 each month for your entire professional career, and letting investment grow at average market rates without touching it, makes it possible to become a millionaire before retirement age.
If 10% is too much for you, no worries: decide today on the percentage you can reasonably save: 8%, 5%, even 3%!
Just one less coffee a day can save you about 30 euros at the end of the month. What really matters is the decision to spend less than what we earn to invest in our future, and to implement that decision consistently.
More than the amount you manage to invest, what is important is the change of mind and the conviction that will follow.
If, due to your current economic constraints, you can only set aside a small part of what you would like to invest, here is a simple and effective way to reach your goal over time: decide today to set aside a significant portion of all your future pay increases.
Before adjusting your lifestyle to your new purchasing power, decide early on to set aside 20 or 30% of any increase in income. If for example you have an increase of € 30 per month, invest € 10. If you have an increase of € 50 per month, invest € 20.
You will always have a little more money to spend than before this increase, and at the same time you are moving quickly towards your savings goals.
After just a few years you will easily reach the 15% recommended by the experts.
After you've made your decision, find an easy way to apply it each month.
A very effective approach is to automate savings, for example by setting up a direct deposit from the account that receives your salary to your investment account.
It is important that this transfer be made immediately, at the beginning of the month. Don't wait until you've covered all of your expenses and put away what's left.
Remember: this investment is for a better future. Pay yourself first !!
There you have it, now you know the first of Tony Robbins' 7 Steps to Achieving Financial Independence, according to his book "Money, Mastery".
Knowing her, however, is not enough. For it to have a positive effect in your life, you must apply it!
No one else can do it for you. Now it's up to you to make that decision!
What percentage of your income will you invest?
What strategies can you put in place to pay yourself first each month?
Leave a comment below!