Top 10 Financial Lessons From Unshakeable (Free PDF)

What would it feel like to know that you’ll have enough money to be rich no matter what happens in life? The stress of finances is gone! A great writer Tony Robbins explains this in his book “Unshakeable.” Being poor is not your failure but remaining poor is your failure.

Life can be easy when you’re young and don’t have a family to care for. When we’re young, most of us don’t learn to be financially independent because this is not taught in school. From today’s book, we will learn the world’s eighth wonder, how financial market disasters might be the perfect investment time, and why diversification is a good strategy.

Rich people or getting rich is not a magical phenomenon. It’s a strategy and hard work. Everybody can become rich, but everybody does not try it. So it is not a challenging game, and it’s a strategy game. So, start playing this rich game with Tony Robbin’s book.

10 Lessons From Unshakeable Book

In the book, there’s a story that’s moving. It’s a UPS worker. He never made over 14000 dollars to his name. A guy comes to him and says, I’m going to make you rich. He said, What are you talking about? I work at UPS, and I don’t make over 14 grand. The guy said it doesn’t matter what I’m going to do from this day forward as I will put a wealth tax on you. It’s 20 percent. The UPS worker wasn’t too happy, but he adjusted.

So he committed and saved 20 percent of every paycheck. Year after year, he put every bonus into his wealth tax year after year. This was a hard, required sacrifice because he didn’t make much, but by age 90, he retired. Do you know how much he retired with over 70 million dollars? That is the true story of Paul Theodore Jones, illustrating that getting rich is financially unshakable.

We need two things discipline and time. Many people say I can’t invest because I don’t have money, but they don’t realize they don’t have money because they’re not investing. What you and I need to do right now is to commit to putting a wealth tax on us to make ourselves better in the future by setting systems in place today.

1. Start today

How to get financially independent? Let’s compare it to people right now. First is a 19-year-old kid. He says this is getting rich thing sounds great. So it takes three hundred dollars a month and saves it in an account. But he quits at twenty-seven, so he’s got twenty-eight thousand dollars in the account. Also, it grows at about eight to 10 percent annually, which is pretty standard.

• The later you start, the later you succeed.
• Don’t think more rather than work more.

Now the second person is 29. He says this getting rich thing sounds great. He does the same thing, Three hundred dollars a month until the age of sixty-five. So he’s got a hundred and forty thousand dollars compared to the other guys, Twenty-eight thousand.

But that’s not exactly true because here’s what happens due to the power of compounding the nineteen-year-old started those extra ten years early. However, it wasn’t much paid off because he had close to two million dollars by the end. The nineteen-year-old started with twenty-eight thousand. He ended up with two million.

The 29-year-old still had three hundred thousand dollars less than the 19-year-old because the 19-year-old started sooner. He started young, and he didn’t touch it. Essentially the 19-year-old compared to the 29-year-old. He got a three hundred dollar raise every single month to play with. How would you like an extra three hundred dollars a month and still be ahead by sixty-five? Those two scenarios do illustrate the power of starting young.

2. Power of compounding

Compounding is the essential tool that’s going to make you rich. Einstein calls us the eighth wonder of the world. It’s why the rich one percent get richer and richer. How is that happening? As they have so much money invested, it makes them money on their investment. The whole book summed up about compounding it, saying get in the market that the sooner you start, the sooner you can get ahead.

• The sooner you can use the power of compounding, the sooner you can get money.
• Invest more and more to generate compound interest.

Compound interest is reinvesting earned interest into the principal of an investment resulting in exponential growth over time. Suppose two investors have a starting balance of ten thousand dollars each. They both decide to buy the same investment on the same date and plan to hold their investments for thirty years. But one investor plans to withdraw the interest at the end of each year, while the other plans to reinvest the interest and compound it.

Let’s fast forward 30 years to see the difference in potential returns. Let’s suppose that the investment earned five percent per year. The investor withdrawing interest every year would have earned five hundred dollars yearly. Over thirty years, the earnings would have totaled fifteen thousand dollars.

That’s not too shabby, but let’s see how much of a difference reinvesting the interest could have made. The investor who reinvested the interest would have possibly earned 33,219 dollars. It is more than double the return of the other investor. It is the power of compound interest.

3. Overcome fear

People are screaming that the sky is falling. We’re all going to die. Winter is coming as another one. People are so afraid when they’re in the market that there’s a crash coming. The book discusses how many people have their money in the stock market. Suppose you had your money in the stock market in 2008, one of the worst financial crashes. How much money did you lose? You lost a lot.

• Only brave can become rich, and funky become poor.
• A risk-taker loses temporarily but finally, they win.

If you pulled it out and let the fear overcome you, you were too far down to recover, and you lost money. But if you stayed in there, nothing happened. Tony tells a story here about his friend who manages a hedge fund. The places where billionaires invest their money have so much money, and they’re in charge of investing other people’s money.

Tony was talking in the book that up to 40 percent of people said they would never invest again. They thought it was too risky. What’s fascinating is that 60 percent of those were millennials.

4. Good analyzer

Warren Buffett says the point of market forecasters, who try and predict what the analytics are doing. Then in two months, it’s going to be up. So we’re going to sell it short or long or whatever. He says the point of those people is to make fortunetellers look good because they’re so bad. You can’t time the market; even the best can’t do it. There’s no way to time the market.

• Analyze the market and try to predict wisely.
• Keep patience, and don’t give up.

So the one thing you can control is being in the market. Everyone is sitting around saying there’s a crash coming. We’re going to be out of the market completely. And then when it crashes, I will be in the market and buy stock for cheaper. But there’s no telling when that’s going to happen. Meanwhile, your cash isn’t doing anything. It’s losing money every single year.

With inflation, inflation goes up, and your cash value goes down. So one of the riskiest things you can do is be out of the market. If you were out of the ten best trading days of the market, you missed any of those ten days. Your returns were down to 4.5 percent. The average returns on stock markets are around eight percent.

If you are out 20 days, we’re down to two percent. So when people try and time the market to make it perfect and try and get in the stocks and outsmart the system, it can be done.

5. Don’t lose money

Warren Buffett is one of the greatest investors of all time. These are some quotes from the book and him. He said, I only have two rules when it comes to investing.

• Rule number one, don’t lose money.
• Rule number two, don’t forget rule number one.

He says to be fearful when others are greedy and when others are fearful. Successful investing takes time, discipline, and patience. No matter how great talent or effort, some things will take time. You can’t produce a baby in one month by getting nine women pregnant. If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes.

6. Index funds

There are the recommended investments in this book. Index funds are in the stock market. S&P 500 is an example of one where it’s got to own. You get to own a little of a lot so you can own a few of five hundred stocks. What that does is diversify in the stock market instead of owning Facebook. If you’re dependent, all your eggs are in that basket.

• Diversify your investment and savings/funds.
• Don’t create one account or one-way investment. Create multiple options that you save your future without any risk.

If Facebook’s goods go away, then you’re out completely. So the S&P 500, or any other index you want to look into, can your money grow at about eight to 11 percent or whatever the market does.

7. Diversification

Diversification is one of those things we hear about, but it’s hard to do. The human tendency is to stick out what we’re good at and keep doing that. Plant one monarch cropping crop, and then what happens to the soil? It dries up all these pesticides, all that stuff, to keep that crop alive.

If you don’t diversify it, OK, looks awesome if something good happens. But what about when something bad happens? Then it all goes away. This book says there are four classes you can diversify over, the four areas you can diversify in.

• The first is the asset class: stocks, bonds, property, etc.
• The second is within an asset class index funds, individual stocks.
• The third is diversifying the country your money’s in, such as the United States or international China.
• The fourth is the time you invest in.

8. Be an owner, not a consumer

Do you have assets, or do you have liabilities? A car is a liability, not an asset. So you’re buying a nice car for one hundred grand or investing that hundred grand and buying a 30 grand car. So this point says, if you want to be rich, you need to become an owner, not a consumer. If you have a seven hundred dollar iPhone but don’t own seven hundred dollars of Apple stock?

• Try to be an owner in every sector where you have the best knowledge and confidence.
• Increase your asset and reduce liabilities.

The takeaway is that the typical road map of working, earning, and saving your way to wealth does not pay off. It is too slow. It’s missing that key component we talked about, compounding that thing that makes everything explode over the long term. You get rich by compounding, investing, diversifying, and becoming an owner, not a consumer.

9. Think big

Being realistic stops us and holds us back from the life we want and deserve. The first step to doing that is a concept called zero-based thinking. If you could start over today, you could scrap everything in your past. How would you behave? What are the habits you would instill? Who would you hang out with? Would you be in the same business you’re in right now? Would you be doing the same things you’re doing every single day? There’s no right or wrong here.

• Think big and positive because negativity always weak you.
• Grow your business by investing if you want to earn more.

You answered no to any of those. No, I would change something, then get moving and change it. Steve Jobs said it best when he said, look around you; everything around you changes when you realize it was built by people who are no smarter than you. Everything around you is built by people who are no smarter than you. That’s how you break past the limiting beliefs, practice zero-based thinking, and go for it.

10. Communication

Tony Robbins says the quality of your life is the quality of your communication. Look at Steve Jobs, Oprah, Tony Robbins, and Bill Gates. What do they have in common? They have a method of speaking to people that connects.

Warren Buffett is one of the wealthiest men of all time. He said that taking Dale Carnegie’s public speaking course was one of the best investments he’s ever made in himself. Let’s end this with a quote from Tim Ferriss from the four-hour workweek.

• A person’s success or failure in life comes down to the number of uncomfortable conversations they are willing to have.
• Create a brand value and communicate with your consumer or buyer to get feedback and improve the quality.

Communicating means speaking well to others, connecting with others, being OK, and having the tough conversations that put you forward.

Short notes

If you invest 5000 dollars and lose 50 percent, you’ll have two thousand five hundred dollars left. Most people think they must make 50 percent to return the initial amount. But this doesn’t seem right. If you lose 50 percent, you will need a 100 percent gain on the remaining 2500 dollar investment to have the whole amount of five thousand dollars.

So this is why you always have to watch your downside. You probably heard that you must take big risks to make a lot of money. Here is the time to tell you that this is not true. Some of the smartest investors in the world are familiar with the rule of low risk and high reward. The people telling you that you need to take big risks all the time are probably not rich.

Most good investors are investing in undervalued assets, and most of the time, these assets are undervalued after an extensive market crash. The 2008 financial crisis is a great example of how you can invest in undervalued assets. Since then, the market has gained around one under 18 percent. Not a bad investment.

Buying aftermarket crashes is good, but how can you protect yourself against such crashes? One of the easiest ways is to diversify your portfolio with this diversification. You’re not putting all your eggs in one basket, putting your money in different asset classes across different markets. Currencies and frames will help you avoid some of these market crashes. Read and grow for people who want more.

Conclusion

We don’t sometimes know market how close or far away successes are. What if you quit ten feet before the finish line? All your results are lost. Everything you worked for is gone. Success comes to those who have that laser-targeted focus. Go after what they want and are ruthless with getting it. Don’t worry about what everyone else is doing.

Worry about speed, creating your product or art, and putting it out to the world. Perfection is the enemy of profitability. Massive value doesn’t come from putting out one or two perfect things they might be thinking.

Focus on putting your art into the world, focus on starting things, and become faster at getting it out there faster than anyone can copy. That’s how you get ahead with business success.

Learn more: Unshakeable Book Review With Summary

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