If you aren’t aware of him, Tony Robbins is my personal favorite life coach. He has written several books about finding happiness and achieving success. You’ve likely seen one or part of his infomercials or talk show appearances.
Among his other contributions, Tony has offered some powerful financial advice for the average person that’s worth summarizing here. His advice comes from interviewing some of the biggest financial minds in the world, like David Swensen Yale’s Endowment Investment Manager, the world’s richest investor Warren Buffet, Carl Icahn, and Vanguard founder Jack Bogle.
In his latest book Tony’s Robbins’ lays out seven steps to financial security:
Step 1: Be an investor, not a consumer. “You don’t want to own an Apple phone, you want to own Apple,” Tony says. That means committing to putting a percentage of your income aside every single paycheck into your retirement accounts. Pick a number and stick to it. Think of this like any other bill you would pay. Car loan? Paid. Mortgage? Paid. Retirement? Paid.
Step 2: Become an inside investor. Investors know the rules of the game. They understand how different investment products work. Look into steady, long-term returns, not get rich quick schemes. Someone throwing money at stocks and hoping they go up isn’t investing, they’re gambling.
Step 3: Have realistic expectations. Some people figure if they can’t make millions, investing isn’t worth their time. That’s odd logic. Don’t make your goal number so big that it’s unobtainable. Figure out what you need to have financial security and come up with a plan to achieve it.
Step 4: Know your risks. Diversifying is important to protect yourself against risk. You may understand tech stocks well, but putting all your money in the same industry is asking to have to your savings swept away.
Step 5: Create an income plan. Income is more important than assets. Owning things won’t put food on your table or let you travel. You need cash coming in the door, even after you stop working. Set up income streams to guarantee your future.
Step 6: Invest like the .001%. The richest people in the world keep a majority of their wealth in investments. They understand the importance of compound interest. Do you think Buffet and Gates have their billions in low yielding CD or Savings accounts?
Step 7: Do it! Make a commitment and get started. Every day you wait is money lost. So many people talk about achieving financial independence, but never take any steps to get there. Don’t fall into the trap of over-educating yourself, reading every blog and listening to every podcast. At some point you have to jump in.
Written by Mark A. Mascia, President and CEO of Mascia Development
Mark manages the investment and operating activities of Mascia Development, a diversified value real estate investment firm that acquires, owns and manages retail, medical office, family offices, multi-family, and industrial real estate properties in the most promising long term growth areas nationwide. Through crowdfunding, they create powerful real estate opportunities for high net worth individuals.
A fully integrated real estate company, Mascia Development has in-house capabilities in acquisitions, financing, re-development, and construction; and their principals have experience in property and portfolio management, leasing, and maintenance.
Mark has a strong career in real estate, previously managing a property of portfolios valued over $1.1 billion. Mark has worked at Archstone-Smith (a former publicly traded REIT) and Monument Realty, one of the largest office real estate developers in the Washington, DC metro area. Mark teaches real estate development and finance at New York University.
For more information, visit www.masicadev.com.
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