1.
GET IN THE GAME: The biggest mistake
most people make when it comes to investing money. Robbins says, is simply not
doing it out of fear that's too daunting a task." You don't want to own an
Apple phone, you want to own Apple." He wrote in Money, Master the game.
2.
DON'T LOSE MONEY: This may seem like
an obvious one but you always need to be thinking about mitigating risks. In
unshakeable, Robbins explains that the first thing he wants to hear from his
investors is how they can "minimize the downside" of a new
investment.
3.
THE FIRST GOAL SHOULD BE FINANCIAL
SECURITY: Robbins defines " financial security" as the money in your
life where you are able to pay for at least five things with money you have
made from investing; mortgage, utilities, transportation, food and basic
insurance.
4.
MAKE FINANCIAL INDEPENDENCE YOUR
NEXT GOAL: Robbins defines "Financial Independence" as the moment you
make approximate 20 times your income off your investments. "It's where I
don't have to work but I get the same lifestyle."
5.
DIVERSIFY YOUR INVESTMENTS: So how
do you achieve security and independence? First Robbins says not to put all of
your eggs in one basket. Diversify your investments in four ways: across
different asset classes, within asset classes, across markets and countries and
across time.
6.
BEWARE OF FEES: Compare adviser fees
on everything. "What you don't know will hurt you in the financial
world." Robbins writes in Money, Master the Game.
7.
BEWARE THE "ENDOWMENT
EFFECT": Robbins says this emotional bias is caused by "Investors
placing a greater value on something they already own, regardless of it's
objective value." This makes it harder to part ways with a falling
investment.
References; www.inc.com, The book; MASTER THE GAME written by
Anthony Robbins.
