I came across this video where Tony Robbins talked about financial independence. It is an hour long video and if you have the time then watch it otherwise I have listed below some key takeaways.
- Definition of financial security, financial independence and financial freedom.
- Financial Security: Housing, cars, food and basic entertainment is covered for life
- Financial Independence: You don’t have to work and everything is covered
- Financial Freedom: You don’t have to work and everything you can think of is covered.
- No amount of money will make you wealthy because the moment you reach your goal, you move it further.
- Pick a specific percentage of income to invest periodically – no matter what. “Pay yourself first” philosophy.
- 80% of wealth is psychology and 20% os mechanics.
- Three buckets of asset allocation in the following order.
- Security Bucket (30-40%) consists of cash for 2-6 months, your home, IRA, insurance, fixed income investments
- Growth Bucket (30-40%)
- Dream Bucket (remaining %)
- Your decisions not your conditions determine your financial destiny.
Thanks for reading and have a great day!