Here are my five key takeaways from the book.
1 - You Need to Get Into the Game
If you don’t play, you can’t win. You need to start investing to achieve the financial freedom you’d like. If you start to buy stock, participating in a retirement plan, or putting money into a savings account for your future, you’ve already taken the first step.
2 - Know the Power of Compound Interest
Compound interest is a powerful tool because when you invest in a vehicle that has compound interest, your money will continue to accrue interest on top of interest that has already been earned. It does take time to earn money with compound interest, so the earlier you start investing in this manner, the more value your money may have over time.
3 - Set Financial Goals
Set financial goals and come up with a plan to make them happen. You can use the #ThisIsMyEra 90-planner to help you make a plan.
Robbins talks about dividing your money into three buckets:
This is your peace of mind bucket with safe investments like bonds, CDs, your home, and cash. It’s safe and not risky.
This is where you invest in more risky investments such as stocks, high-yield bonds, and mutual funds. This bucket helps you achieve a higher return on your money, but you must be comfortable with the idea that you could potentially lose the money in this bucket.
This is where you put money aside for that dream vacation, summer home, or season tickets for your favorite team. Put money here to use to achieve your dreams.
4 - Use Ray Dalio’s Investing Strategy
Use the investments strategy devised by Ray Dalio, a top hedge fund manager, to create an investment portfolio that is recession proof.
- 30% in stocks
- 15% in intermediate U.S. bonds
- 40% in long-term U.S. bonds
- 7.5% invested in gold and 7.5% invested in commodities
5 - Contribution
“The secret to living is giving,” says Tony Robbins.
As you plan for your future, always consider how you can donate and make a contribution to society to make a difference. With the #ThisIsMyEra 90-planner, we make a difference with every purchase we get by helping to empower children through education.