Entrepreneur and investor Tony Robbins is known for dishing out straightforward and actionable financial advice. Here are some of his most notable tips to reach your saving, investing and budgeting goals.
Focus on Your Money Goals
Robbins strongly believes in using the law of attraction to get what you want in all areas of life — including your finances. He says you can attract success over time by manifesting a positive attitude and mastering your money goals.
Wealthy people know the best money secrets. Learn how to copy them.
Surround Yourself With Successful People
Do you know a few people who have achieved financial success? Maybe they own their own business or plan to retire early. Talk to them and find out how they realized their goals. They can inspire you to reach your own.
Delay Rewards Until You Meet Your Goals
To truly realize financial success, you may need to make some sacrifices with the hope of better rewards in the future. Exercising willpower to forgo things you don’t need today is a skill you can develop. Use it to master your financial self-control.
Learn How To Read Basic Financial Statements
You don’t have to be an accountant or financial adviser to accumulate wealth. However, learning the basics of financial statements can help you if you decide to invest in stocks. You can use financial statements to evaluate a company’s performance and determine whether it meets your investment criteria.
Understand Common Financial Terminology
Many terms used in personal finance and investing may be unfamiliar to you. Examples include high-frequency trading, dollar-cost averaging and exchange-traded funds. Learn what they mean and how they apply to your investment strategy. Knowing the terms will allow you to understand investment news and decipher earnings reports.
6. Determine Your Risk Tolerance
Investment strategies typically fall into three categories: aggressive, moderate and conservative risk tolerance. Aggressive strategies are highly volatile, with lots of ups and downs. Conservative strategies aim for consistent, average returns. Your risk tolerance should align with your financial goals.
Set Financial Goals
Anyone who wants to achieve financial freedom needs a plan. Your financial goals form the basis of your plan. Determine what you want to achieve over the short and long term. Example goals include establishing a budget, paying off debt and creating an emergency fund.
Try SMART Goals
The SMART acronym stands for specific, measurable, achievable, relevant and time-bound. Robbins advises using SMART to set smaller milestones for your long-term goals. For instance, if you want to set up an emergency fund, you could set SMART monthly milestones to meet along the way.
Be Obsessed With Not Losing Money
Robbins notes that wealthy people hate losing money because it takes significant effort to rebuild wealth once it’s lost. Apply this rule to all your financial decisions, including your monthly budget, investments and savings goals.
Become a Learning Machine
In your quest to achieve financial success, focus on personal growth. Always be learning. Read personal finance books, listen to podcasts and read investment-related articles. As you feed your mind, you’ll open yourself up to new opportunities you didn’t know existed.
Don’t Underestimate the Power of Giving Back
Achieving wealth or financial success is empowering, but it can leave you feeling empty if your entire focus is the amount in your bank account. Find true fulfillment through giving to others, especially those with the greatest need.
Learn How To Earn Passive Income
Time limits our active earning potential. However, you can earn money through passive income streams without lifting a finger. Potential passive income sources Robbins suggests include real estate investment trusts, money market accounts and dividend accounts. If you’re creative, try monetizing your talent online.
Know How Much You Need To Retire
The time to plan your retirement is today, not tomorrow. Start by evaluating how much you’ll need in your golden years. A rough estimate is 20 times your current annual spending to support your lifestyle. For instance, if you require $70,000 a year to live comfortably, you’d want to save $1.4 million for retirement.
Obstacles Are Opportunities for Growth
You will encounter setbacks as you work toward your financial goals. However, realize that an obstacle is an opportunity to learn something new. Work to overcome it, and you’ll strengthen your resolve as you continue on the path to financial success.
Compounding Interest Is Your Friend
It can seem overwhelming when you think of major financial goals like retirement. How will you ever save so much money? Is it a pipe dream? It’s doable if you recognize the value of compounding interest, which is the money you accumulate on your principal savings or investments. Look for investment options that provide compound interest to grow your savings quickly.
Set a Budget for Holiday Spending
It’s easy to overspend during the holidays, and you may regret it once they’re over. Mitigate your costs by setting a gift budget that’s within your means. If your budget doesn’t allow much for gifts, consider taking on a side job or cutting back on unnecessary expenses.
Pay Attention to Brokerage Fees and Commissions
You may not realize it, but your retirement plan or brokerage account likely charges fees. Some of those fees can be significant, making a big dent in the money you save and earn for retirement. Before opening an account, closely examine the terms and conditions to know which fees you’ll pay. Shop around for the best deals to minimize costs.
Look for a Fiduciary Financial Adviser
Some financial advisers receive commissions on the products they promote, which means their advice may not be in your best interests. Fiduciary financial advisers are required by law to put your interests first and can be a better option.
Don’t Be Afraid of Market Swings
The stock market experiences volatility, and you may worry about losing money when you see a big drop. However, it’s important not to make rash decisions when a dip occurs, as you may miss out on the later recovery. Over time, market swings and volatility tend to correct themselves and result in long-term gains.
Focus on What You Can Control
There are many things you can’t control in your financial plan, including investment performance, economic conditions and market volatility. Your investment picks may fail to pan out sometimes, and that’s OK. Prioritize what you can control — how much you invest and save and your spending decisions.
Get Rid of Negative Money Beliefs
You may have heard different phrases during your lifetime, like “Money is the root of all evil” or “Rich people are greedy.” Those phrases can get in the way of achieving your financial goals. Instead of being afraid of the repercussions of wealth, approach it with an abundance mindset — by attaining financial success, you can help those around you.
Practice Gratitude
You may encounter negative thought patterns or emotions during your financial journey, especially when things don’t go according to plan. Counteract negativity by finding ways to express your gratitude for other things in your life. Spend a few minutes each morning thinking about what you’re grateful for.
Use Bonuses and Raises to Your Financial Benefit
Robbins advises people to use income from bonuses and raises toward their financial goals. Options include saving, paying debts or putting it toward retirement. Try not to use it for unnecessary splurges.
Start Teaching Your Kids Money Basics Early
Instill good financial habits in your kids by teaching them basic money concepts they can understand. Some examples include budgeting, saving and spending. Tie real-life lessons into your money discussions, such as doing chores in exchange for a new toy. Learning about money as a child can instill positive financial habits.
Take Charge of Your Schedule
There are only so many hours of the day that you can use to earn money. Take charge of your schedule and let go of activities that drain your time.
Spend Money Helping Others
Robbins believes in the power of giving, and money is a tool you can use to spread happiness among others. Find a charity you believe in or give to someone you know needs the help. Don’t hoard your money — it won’t lead to personal fulfillment.
Use Your Money for Experiences, Not Things
As you look back on your life, very few material items probably make you happy. Instead, the memories stand out — times you spent with family and friends or experiences you enjoyed. Use your money to make more memories that you can look back on fondly.
Buy Back Your Time
Your weekdays may revolve around working, family and sleeping. Once the weekend hits, you catch up on chores and prepare for the next week. But you could use some of your money to pay for things that cut into your time, freeing you up for the things you want to do. Try cutting back on an unnecessary expense and hiring help for time drains like cleaning your house.
Allocate Your Assets
One of the best ways to mitigate volatility in your investment portfolio is asset allocation. By allocating your assets across a diversified portfolio, you can ride out market shocks, especially during times of uncertainty.
Create a Spending Plan
Robbins refers to budgeting as a spending plan, as “budget” can have negative connotations. Use your spending plan to allocate your earnings toward your different financial goals. A spending plan can help you avoid financial mistakes that keep you from reaching your objectives.
Decide on a Pay-Yourself-First Percentage
The pay-yourself-first percentage is the amount of each paycheck you devote to your future. Set a pay-yourself-first percentage that aligns with your budget and financial goals.
Dump Mutual Funds With High Fees and Low Returns
Scrutinize your investment portfolio for any mutual funds with high fees that don’t generate much return. Eliminate them from your portfolio since they drag your performance down.
Shed the Scarcity Mindset
Try not to let money fears get in the way of your happiness. Let go of any hoarding or tight-fisted tendencies and embrace the power of abundance. Make charitable giving a part of your routine.
Set Time To Record Your Spending
A spending plan works only if you commit to it. Make time to track your weekly spending and compare it to your plan. When it becomes a habit, you’ll find it easier to stay on track.
Break Your Spending Plan Into Categories
Your spending plan should fall into several categories: rent, utilities, food, debts and entertainment. Allocate specific amounts to each category and try to stay within your limits. You might create subcategories for some things, such as groceries versus dining out.
Dive Into Your Spending Details
Keep the receipts from all your spending, and look for extra ways to save. Analyze your grocery bill and see if there are ways you can cut back, such as buying generic rather than brand soda. If you dined out, look at what you ordered and see whether you could make changes to save a little extra.
Check Your Cell Phone Bill
Cell phones can be a considerable expense, depending on your plan. If you have unlimited data, you might switch to a plan with a data cap and use Wi-Fi at home or work to save money.
Reduce Subscription Payments
Too many subscriptions can derail your spending goals. Check your bank statement for unused subscriptions and cancel them if they’re not worth the expense.
Make Saving a Part of Your Spending Plan
Saving money should be just as vital to your budget as spending is. Allocate a specific amount for saving in your spending plan to help you achieve your financial goals.
Choose Passion Over Money
You will spend hours, weeks and years in your career. When you think of all the time spent — a huge chunk of your lifespan — you want to be satisfied with what you choose to do. Do work that you are passionate about, even if the pay doesn’t live up to your expectations. People who feel energized about their work can find ways to make it profitable since it interests them.
Find a Purpose for Saving
Sometimes, defining a savings goal that’s bigger than yourself can help motivate your efforts. Decide what your purpose is. Examples include saving for your child’s college tuition and supporting a parent in their elderly years.
Try the Debt Snowball Technique
If you’re struggling with overwhelming debt, you may feel like giving up. Instead, flex your financial strength using the snowball method. Work on paying off your smallest debt first for a short-term, confidence-building win. Then, move on to the next one. The technique helps you maintain momentum as you work toward becoming debt free.
Avoid Adding to Your Debt
If you’re already in debt, you don’t want to worsen the problem by taking out a new credit card or loan. Adopt the mindset that if you can’t pay for something in cash, you can’t afford it.
Ask for Lower Interest Rates
High interest rates make it harder to pay off outstanding debt. If you have a high-interest credit card or loan, call your bank and ask it to lower your rate.
Shift Your High-Interest Credit Card Balances
If a creditor is unwilling to lower your interest rate, consider opening a new card at a bank with a low introductory rate. However, maintain your commitment to paying off the debt rather than using your new card to purchase more.
Listen to Financial Podcasts
There are tons of financial podcasts you can listen to and learn about unfamiliar topics. On “The Tony Robbins Podcast,” you can listen to Robbins discuss wealth-building, business and investment strategies. Search through the various podcasts available to find one that interests you.
Cut Back on Wasteful Spending
Your daily $5 coffee run may not sound like much, but it adds up over time. Find ways to reduce the little things that don’t add value or bring you happiness. Redirect your savings toward your financial goals.
Reexamine Luxury Purchases
Buying high-end electronics, vehicles and clothing can hamper your financial goals. Before making a luxury purchase, determine whether it’s essential or if a cheaper item would suffice.
Find Fulfillment Outside Money
Money is a means to an end. It isn’t life itself. Use your money to fulfill your needs, but don’t replace the things that can genuinely make you happy — your relationships and inward spirit — with money.
Ask Your College-Bound Kid To Create a Budget
Parents sometimes wonder whether they should pay for their child’s college education. While that’s a personal decision, Robbins encourages parents to put their children in charge of budgeting their college living expenses and tuition. It’s a valuable lesson that can prepare them for managing their household expenses when they no longer rely on you.
Don’t Bail Your Child Out of Every Financial Crisis
Your kids will make financial mistakes and may need your help to overcome them. However, if a pattern of unwise spending decisions starts to appear, Robbins advises parents to sit back and let young adults work through challenges rather than always trying to fix them.
Comparison Shop for a College Education
College education can be costly, so evaluate different options according to their net cost. Compare tuition rates, fees and cost of living, and determine what financial aid or scholarships are available. If your teen plans to attend college, help them understand the expense and how it financially impacts them once they graduate.
Research Scholarships
Thousands of college scholarships are available for aspiring students based on their demographics, high school grades, hobbies and extracurriculars. Encourage teens to apply for scholarships to ease the financial burden of attending college.
Consider a Service Commitment in Exchange for College
Some programs will partially or fully fund your child’s college tuition in exchange for a service commitment once they graduate. Options include ROTC, AmeriCorps, Peace Corps and the National Health Services Corps.
Be Wary of Credit Cards
A credit card offers a quick way to get cash to buy something you want; but, if you don’t use it properly, you may wind up with crippling debt. Take out a credit card only if you plan to use it to build your credit score and know how to use it responsibly.
Save What You Can
If saving 20% or 25% of your income seems impossible, save what you can. A few dollars each week can help you build an emergency fund over time. As your income increases, you can save more.
Minimize Student Loans
If you need to take out student loans to pay for college, keep the amount you borrow to a minimum. Ask only for what you need, and have a plan for repaying it once you graduate.
Find Out Whether Your Employer Matches Charitable Contributions
Part of finding personal fulfillment through money is giving. Ask your employer if it will match donations to your favorite charity. Some corporations will match donations dollar for dollar.
Consider Naming a Charity as the Beneficiary of Your Life Insurance Policy
Some people use their life insurance to leave a giving legacy. You can name your favorite charity as the beneficiary, and it will receive the money as a donation when you’re gone. Your donation may also reduce the value of your estate.
Minimize Your Vacation Expense With a Staycation
Everyone needs a vacation occasionally, but it can be quite costly, especially if it involves traveling. You can save money by staying local. Explore things in your city, such as museums or a nature reserve. Another inexpensive option is camping.
Fund Your Next Vacation With Spare Change
If you have your eye on a family vacation, start saving with spare change. Set up a vacation jar, and deposit your loose pocket change or other extra money whenever possible. Encourage your family members to do the same. Once it’s full, you can trade it in for bills and see what type of vacation you can afford with the money.
Make Saving as Easy as Possible
For most people, saving money isn’t automatic. It requires forethought and action. But you can automate part of the process by participating in a retirement plan. If your employer offers a 401(k) or similar investment vehicle, designate a portion of your income to deposit to it every paycheck.
Take Advantage of Small Business Tax Deductions
If you freelance or own your own business, there are certain tax deductions you may be eligible for that can reduce your tax liability. Some examples include business-related car mileage, your home office and advertising costs. If you qualify, include them on your tax return.
Know the Difference Between Pre-Tax and Post-Tax Retirement Plans
A pre-tax retirement plan allows you to deposit earnings before tax. You defer the tax on your deposits until you withdraw them. A post-tax retirement plan accepts deposits after tax — you can withdraw them tax-free later. If you anticipate taxes going up, a post-tax retirement plan might be advantageous.
Brainstorm Ways To Cut Expenses
If you think about it, you can probably devise creative ways to reduce household costs. Take a deep dive into your bank statement and receipts to find items you’re paying for that you can eliminate. Examples include streaming services and dining out.
Decide Which Expenses Bring You Joy
Some expenses may seem frivolous, but they bring you a lot of happiness. For instance, maybe your bi-weekly visit to the nail salon costs $50, but it’s a prime source of relaxation. Rank your frivolous expenses in terms of joy and eliminate the least pleasurable ones.
Envision What It Would Be Like To Be Financially Free
There’s a reason you put so much effort into budgeting, saving and investing — you want to be financially free. When you feel motivation start to decline, visualize what financial freedom looks like to you. No bills? A paid-for retirement? A nice vacation? When you reflect on your future of financial freedom, it’s easier to stick with your plan.
Know the Value of Asymmetrical Risks and Rewards
You don’t need to have a tremendous risk tolerance to make money. Instead, look for investment opportunities with high rewards and minimal risk.
Personalize Your Financial Plan
There are many examples of financial plans you can use to budget and invest your money, but they’re merely illustrations. They’re not customized to your situation. When designing a financial plan, use a strategy that aligns with your goals, not someone else’s.
Expand Your Financial Knowledge
You don’t have to earn an MBA to succeed financially. However, you should understand basic financial concepts, like the stock market and investment options. Make time in your busy schedule to read finance-related books or attend online courses that can further your knowledge.
Don’t Self-Sabotage
While you will encounter setbacks, learn from them and then let them go. Every day is a new opportunity to accomplish a win for yourself. Celebrate those wins, no matter how small they are.
Recognize the ‘Training Effect’
In the initial stages of starting a new goal, you may see lots of gains, but then the rate will taper off. That’s what Robbins calls the “training effect.” Essentially, you hit a plateau once things start to fall in place. The trick is to recognize the plateau and keep your momentum. The biggest predictor of success is long-term perseverance.
If You Run Into a Problem, Ask for Help
Everyone experiences financial ups and downs. When those downs occur, don’t dwell on them for too long. Instead, seek help from an objective third party. Sometimes, a second set of eyes will immediately notice the things holding you back so you can address them.
Find Ways To Reduce Stress
Most of us have different financial stressors in our lives. You can mitigate your stress by finding ways to release it. Options include meditation, visualization and practicing gratitude. Reducing stress can help you avoid future problems that hinder success.
Reconnect With Yourself
Robbins recognizes that many people spend so much time on their financial responsibilities that they forget about their happiness. Spend some time each week on activities that bring you absolute joy, where there’s no expectation to accomplish something.
Nurture Your Relationships
Develop supportive relationships with family and friends to maximize your healthy lifestyle habits. Forming emotional, trusting connections can increase longevity, reduce stress and improve personal fulfillment.
Live Your Life Proactively
Instead of taking a passive approach to healthy lifestyle habits, Robbins suggests envisioning an outcome and setting goals to achieve it. For instance, if you want to save $10,000, you might set little goals to achieve, such as putting aside $100 weekly. Each time you accomplish a new milestone, you’re closer to your ultimate objective.
Introduce New Habits Slowly
You might be tempted to make extreme changes when you want to see drastic improvements to your finances. However, that’s rarely sustainable over the long term. Instead, focus on one area at a time. Once it becomes a regular part of your routine, you can introduce a new one.
Use Your Mind To Manifest Positive Energy
Robbins is a big believer in the power of the mind to overcome negative patterns that impact your finances. One way to embrace your mind’s capabilities is by spending 10 minutes daily focusing on positive memories and future goals. When you focus on the positives rather than the negatives, you develop an optimistic mindset.
Set Unreasonable Expectations
When you set the bar too low, you won’t put in the effort needed to achieve outstanding results. Instead, you’ll get mediocrity. Push yourself to maximize your abilities by setting lofty goals. You’ll learn what you’re capable of accomplishing.
Act With Courage, Not Fear
Robbins believes that fear is simply undirected imagination. If you let fear guide your actions, you’re unlikely to take the risks that can lead to future success. Choose to embrace your inner courage and believe in a positive outcome.
Be Persistent, but Adapt When Necessary
One of the primary reasons people fail to realize their goals is a lack of persistence. If you don’t stick with your vision when times get hard, you’ll never achieve what you’re working for. However, you also don’t want to become inflexible when change is necessary. Learn to adapt your strategy if something isn’t working without sacrificing your overall goals.
Don’t Compromise Your Values
Take a few minutes and think about your personal values — the beliefs that matter most to you. Some examples might be honesty, respect and determination. Once you know your values, stay true to yourself and don’t compromise them for personal gain.
Always Look for the Good
There will be times when you’re in a bad mood and things seem worse than they are. Recognize that it won’t last forever, and think about the good things in your life. When you have gratitude, working through difficulties is easier.
Financial Success Isn’t a Competition
Don’t look at achieving financial goals as a race with others. Instead, aim to build wealth with a purpose in mind — retiring comfortably, supporting your family or leaving a legacy. When you have a purpose, it’s easier to customize your financial plan.
Keep Your Financial Plan Reasonable
It can be tempting to cut out every unnecessary expense in your budget and devote as much as possible to saving, but that’s probably unrealistic over the long term. If taking a yearly vacation is something you enjoy, account for it in your budget. Balance your financial objectives with your well-being needs.
Put a Set Amount of Money Into Savings Every Paycheck
No matter how much you earn — whether it’s $10,000 a year or $100,000 — Robbins believes you can put something in savings every paycheck. Decide on an amount you’re comfortable with, and deposit it toward your nest egg regularly.
Don’t Touch Your Savings
As you work on building a sizeable nest egg, let it grow. Don’t use the money for anything else. Treat it like it doesn’t exist, and rely on your other earnings to support your lifestyle and living expenses.
Quit Waiting for the Right Moment To Start Investing
Sometimes, people put off investing, believing waiting will bring better opportunities. That’s a mistake. Don’t wait for the “right” time to make your money work for you. The only right time is today.
Use Tax-Efficient Investment Strategies
Taxes can eat a big chunk of your investment returns if you’re not careful. Use tax-efficient, IRS-approved strategies to minimize your tax liability.
Beware of Proprietary Funds
Brokers sometimes offer proprietary funds to their clients. A proprietary fund consists of investments that the firm selects and repackages as an investment option. Robbins advises against purchasing these funds since they typically come with high broker fees.
Get Out of Your Comfort Zone
If you feel stuck in a rut, you probably are. Take an honest analysis of where you are and see where you can make improvements. Making an honest effort at personal growth can help you overcome your rut and achieve actual results.
Never Pay More Than 1.25% in Advisory Fees for Financial Planning
Look for financial advisors who receive compensation based on a percentage of assets under management. Avoid paying more than 1.25% for their services.
Success Breeds Momentum
We’re all born with potential, but you may not achieve your full potential if you don’t believe in yourself. Learn to stand fast in your mindset and beliefs and manifest it toward your financial goals. When you start to see results, it confirms your belief and encourages you to work toward your next objective.
Take Small Steps To Achieve Your Dream Financial Goals
Every day, do something small that helps you edge toward your financial future. Whether listening to a podcast, reading up on investing or saving $5 by making your lunch, every step counts. Think about every step you make as a rung on a ladder to your dream financial goals, whatever they are.
Make Use of Every Moment
You may struggle with finding extra time to work on your financial goals. But chances are you have time — you just need to locate it in your busy schedule. For instance, turn on a podcast rather than listening to music on your daily commute. Or, instead of scrolling through your social media feed during your break, start the framework of a household budget.
Take Responsibility for Your Financial Life
You are the CEO of your financial life, and your decisions impact your future. Realize that you can choose to invest and save to secure your future. When you do, you’ll see the rewards as a healthy retirement balance and nest egg.
Don’t Overthink Financial Planning
Financial success isn’t an exact science. There are some basic principles, like creating a spending plan and saving money. However, how you implement the principles is entirely up to you. The key is to take action. Everything else will fall into place.
Find Someone Who Can Hold You Accountable
If you have trouble sticking to your saving, spending or investing plan, get help. Lean on your partner, a financially savvy friend or a fiduciary financial advisor who can help you stay on track.
When Bad Things Happen, Learn the Lesson
You will experience financial ups and downs throughout life. The key is to learn the lesson that each challenging event presents. If you learn the lesson, you can prevent it from reoccurring.
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