Book: Money: Master the Game
Author: Tony Robbins
Discussion of Section 1 - Welcome to the Jungle: the journey begins with this first step
γνῶθι σεαυτόν, ("Know thyself") - maxim inscribed in the forecourt of the Temple of Apollo in Delphi
Section 1 in Summary
Tony climbs into the reader's head, challenges their psychology, their why, injects a bit of fear by pressing on a sore spot*. Then, like a good doctor, he introduces the outline of his "money machine" solution. He explains that "money is simply a vehicle for trying to meet our needs"
*the number one fear of baby boomers was outliving their savings; and according to an Ernst & Young study, "75% of Americans can expect to see their assets disappear before they die".
Ah-has, Key Points and Phrases:
1. "Life is really about creating meaning"
Meaning: feelings, emotional impact, legacy... there are six core human needs and meaning is something that the book focuses on.
Money allows us to experience the emotions we want; it is a way of accessing that emotional experience
2. Be Humble: Intuition can be wrong and ignorance a blessing
Ray Dalio, the multibillionaire hedge fund founder of Bridgewater Associates: "What has been very successful for me through my whole life is not to be arrogant about knowing but to embrace the fact that I have weaknesses that I don't know a lot about this, that and the other thing. The more you learn, the more you realise you don't know."
When we don't know, we ask: we challenge, we simplify. Dalio suggests we ask "What don't I know?" This allows us to adapt and succeed.
If you see adaptation and changing the plan as a form of failure, rather than an opportunity to attain success, you'll ultimately lose out.
3. Anticipate and make it simple
Losers react; leaders anticipate ("Be Prepared" is the motto of the Boys Scouts)
Let Money work for you (you're the master):
- Asset allocation is the key to successful investing
- Take advantage of the power of compound interest
- Time for money (job)
Make a plan, repeat consistently and make it automatic
Tony's suggested plan for building a money machine: automatically save a fixed percentage each pay period, and then invest it intelligently, and over time you'll start living a life where your money works for you instead of you working for your money.
He suggests 15%, especially if you're over the age of 40
4. Learn to invest when everyone else is afraid
From Sir John Templeton: "Tony, you find the bargains at the point of maxinum pessimism. There's nothing - nothing - that will make the price of a share go down except the pressure of selling".
5. Six Human Needs
For an eloquent expression of this, watch Tony's TED talk.
Bonus: Begin the day with gratitude.
Got access running water? Good. That puts you in the top 10% of the world's population.
Is the water clean, drinkable, available hot and cold? Brilliant. You're in the top 1%.
New beliefs:
Wealth is a vehicle to achieve what matters most in life.
Everything in life happens for a reason and a purpose and it serves me.
Life happens for me. Every step is to strengthen me so that I can become more, enjoy more and give more.
Author: Tony Robbins
Discussion of Section 1 - Welcome to the Jungle: the journey begins with this first step
γνῶθι σεαυτόν, ("Know thyself") - maxim inscribed in the forecourt of the Temple of Apollo in Delphi
Section 1 in Summary
Tony climbs into the reader's head, challenges their psychology, their why, injects a bit of fear by pressing on a sore spot*. Then, like a good doctor, he introduces the outline of his "money machine" solution. He explains that "money is simply a vehicle for trying to meet our needs"
*the number one fear of baby boomers was outliving their savings; and according to an Ernst & Young study, "75% of Americans can expect to see their assets disappear before they die".
Ah-has, Key Points and Phrases:
1. "Life is really about creating meaning"
Meaning: feelings, emotional impact, legacy... there are six core human needs and meaning is something that the book focuses on.
Money allows us to experience the emotions we want; it is a way of accessing that emotional experience
2. Be Humble: Intuition can be wrong and ignorance a blessing
Ray Dalio, the multibillionaire hedge fund founder of Bridgewater Associates: "What has been very successful for me through my whole life is not to be arrogant about knowing but to embrace the fact that I have weaknesses that I don't know a lot about this, that and the other thing. The more you learn, the more you realise you don't know."
When we don't know, we ask: we challenge, we simplify. Dalio suggests we ask "What don't I know?" This allows us to adapt and succeed.
If you see adaptation and changing the plan as a form of failure, rather than an opportunity to attain success, you'll ultimately lose out.
3. Anticipate and make it simple
Losers react; leaders anticipate ("Be Prepared" is the motto of the Boys Scouts)
Let Money work for you (you're the master):
- Asset allocation is the key to successful investing
- Take advantage of the power of compound interest
- Time for money (job)
Make a plan, repeat consistently and make it automatic
Tony's suggested plan for building a money machine: automatically save a fixed percentage each pay period, and then invest it intelligently, and over time you'll start living a life where your money works for you instead of you working for your money.
He suggests 15%, especially if you're over the age of 40
4. Learn to invest when everyone else is afraid
From Sir John Templeton: "Tony, you find the bargains at the point of maxinum pessimism. There's nothing - nothing - that will make the price of a share go down except the pressure of selling".
5. Six Human Needs
For an eloquent expression of this, watch Tony's TED talk.
Bonus: Begin the day with gratitude.
Got access running water? Good. That puts you in the top 10% of the world's population.
Is the water clean, drinkable, available hot and cold? Brilliant. You're in the top 1%.
New beliefs:
Wealth is a vehicle to achieve what matters most in life.
Everything in life happens for a reason and a purpose and it serves me.
Life happens for me. Every step is to strengthen me so that I can become more, enjoy more and give more.
