23 July 2019

10 Best Money Tips of All Time

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For more than three decades Tony Robbins has been propelling people to take action and improve the quality of their lives. The money expert has coached CEOs, celebrities, professional athletes and U.S. presidents and has impacted millions of others through his bestselling books, CD programs and seminars. As part of the competition, Robbins shared some of his best money tips with GOBankingRates. Read on for this advice, as well as some of the other best pieces of life and money advice Robbins has shared over the years.

1. Don’t Lose Money 

This is the single most important rule of investing, Robbins told GOBankingRates. While so many of us are focused on making money, the most successful investors on the planet are obsessed with not losing it. He’s right, too. In fact, his advice echoes that of investing great Warren Buffett, whose No. 1 rule is to never lose money.

2. Take Small Risks for Big Rewards 

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, Robbins said. To do that, you should use the 5-to-1 rule. For every dollar you risk, you have the potential to make five, he said.

3. It’s What You Keep Not What You Earn That Matters 

When it comes to our investments, we have been taught to focus on returns. But it’s not what you earn that matters, it’s what you keep. And if your portfolio isn’t tax efficient, then you may not be keeping as much as you should be. In fact, he said taxes can dramatically erode your earnings over time if you haven’t structured your portfolio with tax-advantaged investments.

4. Diversify to Reduce Risk and Maximize Returns 

Most investors know that diversifying your portfolio helps reduce your risk because you’re not putting all of your money into a single investment. But diversification doesn’t mean investing in a random selection of stocks and bonds. One way to get the diversification you need is to invest in low-fee index funds.

5. Stop Mindless Spending 

Want to stretch the value of a dollar? Then you need to spend on things that dramatically enhance your quality of life, and stop mindless spending that doesn’t add any value to your life, Robbins told GOBankingRates. Think of how you’re spending on things you don’t need to enjoy life, he said. For example, spending $40 a week to go out to dinner instead of enjoying a low-cost meal at home with friends can add up to more than $2,000 a year. If you invested that money instead and earned an annual 8 percent over 40 years, you’d have more than a half million dollars, he said.

6. Focus on Results Instead of To-Do Lists 

When Robbins recently was asked by LinkedIn to share his secrets for being more productive, he said people should ditch their to-do lists. You’d think an authority on leadership and performance would advocate a method for keeping track of what needs to be done. But he wrote, 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.

7. Knowledge Is Not Power, Execution Is 

It’s important to always be learning. And Robbins does that himself by seeking out people who break the norms and demonstrate what is possible. But you have to take what you’ve learned and put it into practice. Just make a little bit of progress each day or each week, and before you know it, your path to financial freedom will be realized.

8. Notice What’s Working and Not Working 

As both a business and life strategist, Robbins asks people to examine what they want in life. Part of that process of figuring out what results you want involves noticing what is and isn’t working. When it’s not working, change your approach. And keep changing until you finally achieve what you’re committed to, he told Success magazine. This can apply to all aspects of your life, including your finances. If your efforts to cut spending to save more aren’t working, try another approach. If your attempts to eliminate your debt are backfiring, look for another strategy. The key is to learn from your mistakes.

9. Model Strategies That Work 

To achieve what you want in business or life, Robbins advocates modeling someone successful. They’ve got a set of strategies that they apply and those strategies work, he told Success.

10. Don’t Sabotage Your Financial Success 

The No. 1 thing that keeps people from achieving what they want financially is self-sabotage, Robbins said. They sabotage their own financial success because, on some level, they believe it will lead to more pain than pleasure. They focus on the negative aspects of money — worrying, for example, about the taxes they’ll have to pay as they earn more. He said you should think about the pain not having money has caused you. Write it down, then write down the positive things money offers to motivate you to change your mindset.

Click here to access the full article on GoBankingRates.com

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