Financial Freedom in 7 Steps

by Johnlabunski Labunski John Labunski Dallas

Financial Freedom in 7 Steps

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

In his book, “Money: 7 Steps to Financial Freedom,” Tony Robbins unravels myths about investing and personal finance.

Learn to protect your money and plan for an advantageous retirement before you get 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 damage to their lifestyle.

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

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

2. 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 about what you believe in.

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 awesome house, a cool car and flaunt a lifestyle. However, this is not the path to long-term success.

Saving and investing aggressively doesn't seem all that attractive. However, it helps you sleep peacefully. It's a security issue.

3. 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 the help of a financial advisor. He can accompany you and advise you throughout the investment process. Try to know 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.

4. The game must be “winnable”

True financial success has 5 levels:

1.      Financial security

2.      Financial vitality

3.      Financial independence

4.      Financial freedom

5.      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's just your decision.

5 strategies to optimize your personal progress:

Save more money and invest the difference

Earn more money and invest the difference

Reduce fees and taxes and invest the difference

Maximize the rate of return by diversifying your investments

Change your lifestyle and invest the difference

5. Learn to put money in the right place

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

It's not enough to own a bunch of stocks. One needs to own a bunch of unrelated asset classes: domestic equities, international equities, emerging markets, bonds, real estate, commodities, etc. Put your money in different buckets. If a bucket leaks, you don't lose everything.

6. Create a source of lifetime income

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

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

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

Inflation: commodities, gold and inflation-protected bonds

Deflation: Treasury bonds and stocks

Rising economic growth: stocks, corporate bonds, commodities and gold

Declining economic growth: Treasury bonds and inflation-protected bonds

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

7. Invest like a billionaire

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

Don't lose 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 in the end.

Evaluate the risk/reward factor: not all investments are risky, and you don't have to bet everything on just one option.

Anticipate disasters and diversify your investments. Any investment involves some degree of risk, whatever it may be. If you spread the risk across different asset classes, you guarantee that one shot won't sink your boat.

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 upon itself. The more knowledge you acquire, the greater your reward. 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 at its best. Understand that money is just a tool to help you do that.

At the end of the day, it doesn't matter how much money we raise, how we diversify our portfolio, or how many times we beat the market. What really matters is how you improved the world around you.

Instead of money, your goal should be to live a life with purpose. Whatever that means for you. For the vast majority, it's about giving your time, energy, and money to others.

Give your time, energy and money to others and start living a fully rich life now.

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Created on Feb 27th 2022 16:39. Viewed 254 times.

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