If you haven’t obtained a copy of Unshakable by Tony Robbins, now is the time to give it a try. It is available for the cost of shipping and handling. This is a book you read as if you were taking a class.
Unshakable introduces several financial concepts while including questions which could be utilized as journaling prompts.
Unlike other books where you read five chapters before you learn anything which can be applied immediately; Chapter 2 offers an explanation of various financial principles which can be understood & applied. The chapter gives us a signal of the gems to be learned.
Here are a few quotes & financial terms from Chapter 2 of Unshakable:
“Our capacity for pattern recognition is also the number one skill that can empower us to achieve financial prosperity. Once you recognize the patterns in the financial markets, you can adapt to them, utilize them, and profit from them.”
“By starting earlier, the compound interest he earns on his investment adds more value to his account than he could ever add on his own.”
“The single best place to compound money over many years is in the stock market.”
“It’s a common misperception—this belief that, if your earned income is big enough, you’ll become financially free.”
“You’re never going to earn your way to financial freedom. The real route to riches is to set aside a portion of your money and invest it, so that it compounds over many years. That’s how you become wealthy while you sleep. That’s how you make money your slave instead of being a slave to money. That’s how you achieve true financial freedom.”
There is a chart in Chapter 2 which provides a review of how much a $3600 investment made at age 19 would be at a 10% rate of return through age 65.
Build a Freedom Fund
“First, you’ve got to save and invest—become an owner, not just a consumer. Pay yourself first by taking a percentage of your income and having it deducted automatically from your paycheck or bank account.”
Save More Tomorrow Method
“You start by saving just 3% and gradually raise this to 15% or 20% over time.”
Correction in Stock Market
“When any market falls by at least 10% from its peak, it’s called a correction…”
“When a market falls by at least 20% from its peak, it’s called a bear market.”
Seven Freedom Facts:
Freedom Fact 1: On Average, Corrections Have Occurred About Once a Year Since 1900
Freedom Fact 2: Less Than 20% of All Corrections Turn Into a Bear Market
Freedom Fact 3: Nobody Can Predict Consistently Whether the Market Will Rise or Fall
Freedom Fact 4: The Stock Market Rises over Time Despite Many Short-Term Setbacks
Freedom Fact 5: Historically, Bear Markets Have Happened Every Three to Five Years
Freedom Fact 6: Bear Markets Become Bull Markets, and Pessimism Becomes Optimism
Freedom Fact 7: The Greatest Danger Is Being out of the Market
This seems to be a good time to remind you the proceeds of this book go to Feed America. The authors of this book have also created an App which can assist you in identifying what you need to save and invest.
My notebook came in handy while reading this chapter. It lives up to its name of being a financial playbook. To summarize the chapter:
“You know that corrections and bears are to be expected, and you’ll soon learn how to take advantage of them. You’re one step closer to being truly unshakeable.”
Chapter 2, Unshakable, Tony Robbins
Til next time,
“The message is clear: the greatest danger to your financial health isn’t a market crash; it’s being out of the market. In fact, one of the most fundamental rules for achieving long-term financial success is that you need to get in the market and stay in it, so you can capture all of its gains.” – Tony Robbins
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