TLDR – use this spreadsheet to find out how much money you’ll need to be financially free. Use this calculator to see how much time it will take you to get there. Or use this calculator to see how much you should save each month to get there in a certain timeframe.
—
Note: This article is part of a section-by-section break down of the book Money Master the Game by Tony Robbins. Click here to start at the introduction to this series: The Journey to Financial Freedom.
—
The purpose of starting this journey is to get on the path of financial freedom. The third section of MMG helps you set five target dollar amounts that help you focus your aim. Each target gets you to a higher level of financial freedom. The five targets are:
- Financial security – money to get all your needs met
- Financial vitality – money to get all your small indulgences met
- Financial independence – money that matches your current income
- Financial freedom – money that gets you luxury items
- Absolute freedom – money that gets even more luxury items.
What are your numbers?
You can find out your targets by using either the book’s companion app or this spreadsheet. To make this goal real you have to know your numbers. Learn it. Right it down. Figure out how long it will take you to get there using this calculator. If you have a target date in mind, use the calculator to figure out how much money you’ll need to save each month.
To be 100, I hesitated to find out my numbers because once you know your target you can measure how far you are away from it. This knowledge can be depressing depending on how far you need to go. If you don’t know you can remain blissfully ignorant, which can be comforting. But if you want things to change, you have to change. You have to make yourself uncomfortable. Stretch beyond what you think is possible, then continue to stretch. This exercise made me stretch and now I know the exact numbers I need to reach.
How do you get there?
Tony gives specific tips in this chapter to help you get to your goal faster. It’s nothing we haven’t touched on already: save more, invest, get better returns, reduce fees, earn more. These are all easier said than done, but doable. I’m still not clear on the investments and get better returns part but I still have a lot of ground to cover in this book.
Onward
So far, we’ve made the commitment to save, we know the rules to game, and now we know our targets. The next section gives us strategies on how to bucket our income. The following section provides portfolio allocations to protect our money from the volatility of the stock market. I can’t wait to get into it
As usual I welcome questions/comments.
Update: I’ve completed summaries for all sections of MONEY Master the Game and wrote a book review. Find the links to it all below.
- Intro: Journey to Financial Freedom
- Step 1: Pay yourself first
- Step 2: Understand the rules
- Step 3: Set your target dollar amounts <- You are here
- Step 4: Determine your allocations
- Step 5: Set up your portfolio
- Bonus: Full book review of MONEY Master the Gam