Anthony Jai Robbins is an American author, entrepreneur, philanthropist and life coach. He is known for his infomercials, seminars, and self-help books like Unlimited Power and Awaken the Giant Within. When it comes to his motivational, practical and game-changing ideas no wonder he has so many followers who are inspired by his thoughts. He realizes the value of earning money and seeks out to explain from a novice to the financial controllers about how to manage money and see it grow by making wise decisions. Some of his approaches of managing money in today’s scenario are as follows:
Become an Investor
Robbins has said that if you want to reach financial goals faster, you have to make investing a habit. “Whether it’s saving 10 percent or 15 and 20, you’ve got to get in the game and you’ve got to become an owner, an investor,” Tony Robbins said precisely in his interview. He gave the example of a UPS driver who made $14,000 a year but retired with $70 million because he saved 20 percent a year. That habit of saving and the power of compounding interest created lasting wealth, Robbins said “With the power of compounding, you get where you want to get.”
Diversify to Reduce Risk and Maximize Returns
Being an investor and owner, we must actually know where to put the money in. That’s asset allocation. You need to make sure to diversify with a portfolio that can help reduce risk because you’re not pouring all the money into a single investment. But if you’re a rookie investor, always consult with an expert.
Be Proactive With Your Money
Robbins mentioned that you need to “stop being the chess piece and start being the chess player. It’s time to master the game of money once and for all. Whether you’re learning to create a budget or taking control of your investments, don’t put your finances on the back burner. Most of all don’t be afraid of a bit of failure. After all, as Robbins has said, failure is an important part of succeeding through money-making opportunities.
Take Small Risks for Big Rewards
Robbins doesn’t pretend that risk doesn’t exist. But there are ways to manage risk. “While there is no such thing as a riskless return, every money master in the world will tell you, without exception, one of the most vital components of your portfolio is to find investments with asymmetric risk and reward,” By using the five-to-one rule, which goes “for every dollar you risk, you have the potential to make five. You can be wrong four out of five times, but as long as you are right that fifth time, you will break even.
What You keep matters more than What You Earn
Robbins pointed too many people look at their investments and focus strictly on returns. “But it’s not what you earn that matters — it’s what you keep,” he said. He clearly meant taxes can dramatically erode your earnings over time if you haven’t structured your portfolio with tax-advantaged investments.
Stop Mindless Spending
Try to stop mindless spending that doesn’t add any value to your life. Spending on things you don’t need can quickly add up, he said. If you invested that money instead and earned an annual 8 percent over 40 years, you’d have more than a half-million dollars was quoted by Robbins.
Focus on What You Can Control
Robbins has said that to succeed, you need to stop focusing on what you can’t control and focus on what you can. In this way you can add value to the marketplace.
Worry about Results Instead of To-Do Lists
According to Robbins, the biggest problem with to-do lists is that focusing only on what you need to get done does not guarantee that you’re actually making any real progress.” Figure out what you want, and then focus all of your activities on making progress toward that result, he said. Making progress in all the areas of your life is what mattered the most.
Don’t Be Fearful — Be Educated
Everyone has something they’re afraid of doing. But don’t let that fear prevent you from making moves that increase your wealth. To get over your fear, Robbins said you need to learn the facts. So he wanted us to immerse in your own world with a book and walk away with a completely different perspective about what is going on around us.