Book Summary (Money, Master the Game)

Many dream of being financially secure but don't know where to begin. Even when a plan is implemented, people struggle to stick to it and end up back where they started, possibly even worse. Nobody gets rich by simply dreaming; it requires hard work and focus. "Money Master" clearly explains how you can create a plan to give you cash with minimal effort. For some, they have poor saving and investing habits, while for others, it is their low income and family responsibilities that prevent them from investing. Whatever your situation, it helps to remember that something can be done about it. Ultimately, nothing lasts forever, and you can change your life. "Money Master" doesn't focus entirely on how to make money and splash the cash throughout your days but talks about creating the financial picture you need to have for the life you've always wanted.

Everyone needs money to survive daily; it is a widely accepted means of exchange. The problem is, even though we use money daily, we hardly ever talk about it. Parents do not educate their kids, spouses hardly disclose their financial information to each other, and everyone stays away from discussing money. Money is necessary for our survival, and if we are going to live a happier life, we need to be ready to have open conversations about it. Having the right attitude toward money can be life-changing. As important as money is for your goals, it also has the power to start conflicts and misunderstandings. If you want to go on your journey to financial freedom successfully, be ready to have open conversations and be willing to control your finances carefully. The first step to gaining financial freedom is working out what money means. If money is just a means of exchange for you, you might not value it as much as someone who sees it as a key to happiness. Research shows that about 77% of Americans have money problems, but conversely, around 40% have an investment plan. Some people are making the right decisions and gathering nest eggs for themselves. Investor and billionaire Ray Dalio explains that you can learn more about money by accepting your weaknesses and learning little things daily. The successful people you see today didn't stumble on their fortune by luck; they put in the work.

A plan that secures your income for the rest of your days gives you peace of mind and encourages you to explore the things you dream of. It's more important than ever to think about the long-term because our expected life spans are increasing. Research shows that married couples now have a 50% chance that one partner will live to the age of 92. When you live longer, you need to create more wealth to cover your years. The key to generating wealth so that you are not working when you're 92 is to create passive earnings. It means you're making a method of income that runs itself or with minimal input from you. Investment is the ideal way to create a passive income method for yourself. However, to understand and master investments, or any subject, there are 3 things to bear in mind. These are the 3 levels that allow you to master any subject at all, investments included: • An understanding of the subject or idea, also known as cognitive understanding • An emotional reaction or pull toward the subject, known as emotional mastery • Doing something about it, known as physical mastery When you have a cognitive understanding of a subject, it means you've done some research and are curious. Curiosity is a good thing because it means you'll keep digging for answers. The second level, emotional mastery, is the pull you have toward the subject. If you have no emotional attachment, you won't care if it doesn't work out. If you do not care, you will not likely do the required work. For anything to work, you need to do something about it. Wealth will not magically come to you — you need to work for it. You need all three levels to achieve financial freedom, but repetition is the key. By repeating your actions, you'll learn more and increase your chances of success.

If you do not take the first step, you'll always wonder what could have been. First, you must determine an amount you can save regularly from your paycheck. This money you're saving can also be called your "Freedom Fund" because it will lead to financial success. It is better to automate this process so you are not tempted to touch the money. Consider Theodore Johnson, who worked for UPS in 1924. He didn't have the highest- paying job, but he saved 20% of his monthly salary. After a while, he invested in stocks. By the time he was 9o years old, he had made more than $70 million. The key is consistency. No matter where you start, you can amass wealth over time. When you save or invest over time, you gain "compound interest." This interest is the profit you earn from your investments and savings; the more you put in, the more it increases. It is how your money works for you without you lifting a finger. Sounds like magic? No, it isn't.

If you want your investment and savings plan to work, and if you're going to reach the pinnacle of your financial freedom, you need to believe it's going to work. Without belief, you might as well not invest or save anything at all. Take Curt Schilling, for instance. The baseball pitcher earned about $100 million throughout his successful career. After a while, he invested all his savings into a startup business which never succeeded. Shilling lost everything and eventually ended up in debt. In a discussion, he revealed that he never believed the investment would work in the first place. You need to consider the journey to financial success as a game. To become a master, you must stop thinking of labor for cash. Instead, think about how your money can work in your favor in the way you want. With the right mindset, you can do almost anything. If you keep thinking small, you're only limiting yourself. As you apply the right mindset, you also need to do so with knowledge and care. Read important books, gain proficiency, and know the rules. Look for all the potential traps and only invest in verified businesses.

These days, there are many stockbrokers — professionals who buy and share stocks on behalf of others. They try to convince you to invest with them and entice you with mouthwatering deals. The truth is that brokers are running a business and trying to profit for themselves. Whether your stocks make a profit or not, they get their commission. If someone tries to convince you to invest a massive amount of funds in a venture you are unsure about, do not hesitate to decline. With the Internet now, things are easier to do. You can do your research and even use trusted investment apps. As you invest, your aim should be to achieve "critical mass." It refers to a safe investment that can cover your daily expenses, retirement, and other needs. To achieve this, you go through 3 phases: accumulation, the view from the top, and decumulation. The accumulation phase is when you put a little cash aside from your monthly salary, accumulating enough to invest. You're then investing smartly and wisely in the right areas, listening to advice from those you can trust. After that, you hit your peak — the view from the top. You can relax, enjoy yourself, and spend time with your loved ones. Everyone hopes this stage lasts a long time, but if you make a mistake, it can set you back a few steps. After a while, you get to the decumulation stage. In this stage, you spend the money you've managed to amass over the years, and you don't have to worry. Since you've made wise decisions in the accumulation phase, you're fine.

How much do you think you need to be financially secure and free? Be realistic. You might be tempted to come up with a crazy number in the millions, but not every investment will succeed. To be happy, you need to come up with a number that suits you and your needs and then make it achievable. Robbins often talks about this during his TED talks and seminars, asking the audience how much they think they need to fund their dreams. Typically, people stand up and give absurd amounts, but most don't actually know. It takes time and a little research to determine how much you will need to be secure, pay off any debts, and pay for things like your house and car. Work it out and come up with a number that suits you. When you look at the number you chose, it might seem wildly unachievable, but by making wise investments and working with the compound interest you receive, that number will seem much more realistic. However, make sure that the number you come up with is personalized to you and your situation and that you're not placing too much importance on significance. By doing this, you're simply competing for attention or comparing yourself to others. It is your journey, not theirs. Fulfillment comes from personalizing your dreams and aims. The bottom line is that you cannot reach your overall financial goals if you have no idea how much you will need to reach the plateau point where you can enjoy the view. From there, you work slowly and methodically to make definite progress.

The more investment options you have, the better you'll sleep at night. It is impossible to predict the outcome of all your investments, so spreading them across different industries is more beneficial. Diversifying your investments helps to protect you from those surprise downturns in the market. With hard work, anyone can earn a lot of money, but you stay wealthy by understanding asset allocation. It means where you place your money and how you arrange it. By placing all your cash in one investment, you have a considerable risk, which could turn around in a very unpleasant way. David Swenson, an expert advisor, explains that there are 3 most important elements for successful investing: • Selecting safe investments, e.g. security selection • Timing your investments • Asset allocation How you divide your investments depends upon your overall goals and how much tolerance you have to risk, but diversity is vital. Also, it doesn't hurt to seek financial help from an expert before investing in any asset class.

To give you the comfort blanket of a steady income for the rest of your days, you need to invest in a way that limits the number of losses you might suffer and increases your gains. It can be difficult because nobody knows what will happen in life. Our experiences change us and shape the way we see the world and the way we make decisions. For instance, if you were born during the Great Depression, you lived through a hard time financially and economically. As a result, your spending and investment decisions are likely to be much more hard-thought and careful. However, if you're a millennial, you were born during a time of affluence, which means you might be slightly less cautious or wise with your investments. For your portfolio to get the best out of the various investment opportunities out there, you should consider this: • Stocks should make up 30% of your investments because it is high risk • Your portfolio should have 15% government bonds that are medium-term • To balance risk, invest 40% of your portfolio in long-term government bonds • Gold can have 7.5% of your investments • Then, you can invest 7.5% in other commodities such as agriculture or livestock farming You should always review your investments no matter how airtight your portfolio is. When you make some profit, sell a percentage off and put some money back in.

No amount of wealth is impossible to make. The more you invest wisely, the better your chances of getting a greater reward. First, you need to assess what type of investor you are. Read books, listen to podcasts, and seek professional financial advice. You'll be able to make better choices this way. Financial freedom is peace of mind and happiness, and it comes from hard work and the determination to succeed. The first thing you need to do is start. Once you conquer fear and begin investing wisely, there will be no stopping you. Making more money is a game; only those who know the rules win. Try to ignore trends and focus on building sustainable wealth instead. Chances are before something becomes a trend, smart investors have already made a profit off it. You can join an investment group or share your ideas with friends and family so they can hold you accountable. Most importantly, believe in yourself even though things are not going well. No one else will, so putting all your bets on yourself is best.