Tony Robbins 7 Simple Steps to Financial Freedom with Lewis Howes

So I'm here with Tony Robbins. Thank you very much for coming and I am very excited about this interview. You're actually one of three people I've wanted to include in the program since I started the School of Greatness. I have congratulated him. you were one of them, Will Smith and Awesome and the rock I know, so cool, cool, you three are extremely inspiring and up to such great things in the world, yeah, and that's what the greatness of the school is all about , so I. I'm very excited, very excited to talk about your new book, thank you, money, master the game, I'm a very slow reader, uh, and I've probably only read four books cover to cover, one is the alchemist, yeah, a big one book, one is a four-hour work week and I'm almost done with yours, okay, I don't think this is a great achievement, although it is a great achievement for me, it is a great book for anyone, it is a great achievement, but It's very interesting and I feel like I've done a pretty good job. of making a lot of money in the last few years yeah I never knew how to make money before yeah I was an athlete I was trying to get to the NFL that was my only focus was playing sports I never learned how to make money yeah so when I was able to dive into this and really learning the ins and outs of making money, but actually allowing money to make money for you exactly, making money while you sleep, making money while you sleep, it was very interesting and I'm sorry.

I've done a good job making money over the years, but there's a lot more here that fascinates me. It's interesting because I did the same thing. You know, I come from a very poor background and we had no money. for food sometimes literally and it was hard so I want to make sure that money is not a problem for my future family so I figured out how to make money and I thought when it was, I don't know 23 I thought I would make a million dollars in one year. I went from 38,000 to a million and that's not done through some new strategy, there's a psychological shift and a shift in strategy, but then I made the same amount of money for seven years in a row even though I built a dozen more companies I have. more people than ever but it was like unconsciously what do you want? more than a million dollars what are you? you know you're greedy and and I was, actually I was staying where I was I was in um I was in milwaukee wisconsin I arrived at two in the morning on my birthday I didn't have a private plane so I had to go like four different connections from where I was and I walked into this place and it's a horrible place and I call my kids and I'm talking on the phone to a woman named Maria who used to run my house and take care of my kids and I said: you know Maria, I'm sorry it's so late, but I want to talk to my children oh happy birthday she's all this and then she goes with me to Mr.

Robbins you know she says I never dreamed I'd live in a castle because I had a place called drama and I just want to thank you, I feel like a princess, she went last night. I was sitting in the hot tub looking at the water and thinking, oh look, yeah, but I'm at the Ramada Inn in those days looking at this moose head, this woman is very rich, so I finally decided to hear if I can beat them, you know, 38 billion, it's not about money, it's like growth, so I wouldn't do it. I'm going to make three million, but I want to make more while I sleep, but then it really started to dawn on me.

No matter how much money you make, it's really your ability to take your creativity and stop trading time for money. It's the worst business in the world. They are all

financial

traders, they don't realize their trader, they are trading time and you can. I don't have any more time, so this book is how to take someone, an average person, a millennial just out of college with a ton of debt and say, how can I really make this work? or baby boomer and how can I still retire and the way I did. was that I said I wanted to interview 50 of the most brilliant

financial

people in the world because most people don't know that I have been working with paul tudor jones one of the top 10 financial traders in history for 21 consecutive years and he hasn't lost money in one year in 21 years, right, we make money with the technology you already know, it exploded in 2000 and in the 911.

In 2008, when the market went down 51 from top to bottom, it got 28 positive, incredible, so every day He literally emails me, I supervise him, I come see him, I work with him and he pays me seven figures a year to be able to do this and I've continually been able to help him get to the next level, but frankly, I've learned the most from him, I think I could ever teach you well and he helped me open these doors, so this book is the best by every self-made billionaire I can find, Carl Icahn. I mean, I'm sitting with this guy. just made two billion dollars in the last 18 months from a $30 million investment in Netflix, sent an email or tweet about Apple saying it was undervalued, and two hours later he was worth $17 billion more for a tweet, so the people I've had to deal with for the last three four years.

I have a PhD in finance from the people who control the world's finances and what I'm trying to do is the reason they do it is to simplify it. I can train anyone else because in this business what you don't know will hurt you financially so I want to know how to protect people and how to help them maximize and that's why I made the book, it's amazing and what I want to know. that's why we weren't taught these things when I was a kid, tell me too well, so if you were, if they said, okay, Tony, we're giving you the key to the education system, yeah, and how would you apply it to what? teachings would you apply? about finances, learning about it, how to build wealth instead of trading time for money, but really take advantage of it and invest in the right way, what would you start implementing well?

The first thing you want to teach any kid is to never earn your way to

freedom

, just don't look around and you'll see that you know Kurt Schilling, if you remember him, of the Boston Red Sox. Yes, at a hundred million dollars a year, he's broke. He asked Warren Buffet. So what made you the richest man in the world? world and smiled and said three things, he said living in America, great opportunities, having good genes, having lived a long time and he said the last thing is compound interest and we all know about compound interest, but I give an example, the book of this type. theodore johnson worked for ups he never made more than 14,000 in income in his entire life in one year and in his old age he was worth 70 million dollars and how do you do it all he did was take a percentage of his income his percentage was now 20 his family said we can't, we can't save money, but he met a friend who told him that if you pretend there's a tax and the tax just takes your money and you never see it, the money just leaves your account. goes to an investment account, you will be financially free, so he was disciplined, he did not look at it, it happened 70 million dollars through compounding, then people's mistake is and children do not know this, adults do not know this, you do not you will know. earn your way there, but you can increase your way there, what I want to do is say where do you put that money, no, that's a trick, right, it's a secret, well, the first trick is actually to make almost no one does it well, the second trick is that you really have to understand where they are going to hurt you because tariffs tariffs just destroy people you have a whole chapter on tariffs.

I thought this is amazing, isn't it crazy? It's crazy how do you lose so much money just on the the fees are good just so people understand 96 of all mutual funds never beat the market I mean they never beat the market so I was on a morning show this tomorrow and um and Michael Bloomberg, one of his guys who has some of his money. So, you know, this is the only industry I know where people think they can be doctors, they think they can be financial planners and I said, well, look at the statistics, Warren Buffett taught me this, you said Ray Dalia.

David Swenson, who took Yale from $1 billion to $24 billion in two decades, told me. These people tell me that no one outperforms the market except a couple of unicorns that no one has access to. And I said I didn't say you're not one of them. but I said this is the truth. 96% of mutual funds do not match the market, which means four percent are successful now. What are your chances of choosing the right mutual fund? People don't know what they're doing. They put their money in a 401k. pick a mutual fund without knowing what it is if you play blackjack and you and I play and you get two face cards and your inner idiot says hit me I want I want a one in a million chance whether you're an ace you have an eight Percent chance of winning right, if you try to get a mutual fund, you have a four percent chance of winning, so what I show people is that not only do you not get the result by thinking logically, if I hire someone else to If you do it, you will do it better. than me, but you also pay about 2000 more than it's worth, which means you get the exact same product, the same stock, if you own the index correctly, you want a piece of all the best companies in America, the index says vanguard 500, the top 500 companies that cost point one seven percent like less than two tenths of a percent versus the average mutual fund is 3.17 that's incredible, but first listen to that so you understand that it's like the average car sold in the United States United out a honda civic, it's 20 thousand dollars and you get the honda civic for 20,000 or you can pay 350,000. that's the difference between 0.17 and 317. but if you look at it over a period of how old are you 31 31 that's fine So let's say you and your friends 35 managed to save 100 grand and you manage to not add more money but grow it at seven percent despite the ups and downs of the market and you're 65 years old, how much money do you have?

If you paid one percent in fees over those 30 years, 100 grand turned into $574,000. Not bad for never adding another penny, if you had three percent in fees you would have the same growth, but with three percent of these you now have 300. Oh, and 24,000, almost half of a quarter of a million dollars, 77 percent less money and you would have the same return was just the fees, so most of people ask them what their rates are, they have no idea, so I've created a site where people can go, they can type it in and you'll find out exactly what their rates are and what they should be paying and it's just highway robbery, right?

Where in the world would you pay two thousand dollars, two thousand percent more for the exact same product? It can only do so because the financial industry makes things so opaque, so complicated, and people feel overwhelmed and difficult to understand. I understand very well that's why I try to come in here and find time to become the chess player, not the chess piece. Let me teach you so you understand what is happening. It's not that complex. They use all these big words. Yes, but when you know what happens. You don't get screwed, and more importantly, you take advantage of the system instead of letting the system take advantage of you.

Yes, I like that you have now trained some of the best athletes in the world. Former presidents. Most important CEOs. Who trains you? Many people have asked me to ask you this question: Who advises you? Who trains you today? I've always looked for people who were playing at a different level than me and who knew the way forward. I always tell people in advance. It's power if you're playing a video game against a kid, it's pretty disastrous, maybe not for you, maybe you're from a different generation, but to me it's like you know they're not the fastest or smartest kids if they played this game. before like eight. millions of times so they know the first shot is here, it's like a shot, the third shot there and you're reacting, so when you react to things you fail, my mentors have been people over the years, different people, my first mentor was a man named Jim Rohn, he was a personal development speaker, he just touched my life, then I was involved in neuro-linguistic programming, NLP, when I was 21, 22, 23, I became a partner with a man named John Grinder , a brilliant man, co-founder of that, but in my last couple of decades, it's been people like peter guber the owner of the dodgers and the owner, you know, of the NBA team Golden State Warriors and he just got 52 Academy Award nominations, so he's a mentor to me, a tutor to Paul Jones, who I coach, but also.

I'm coached by him because we can throw and catch him, and then you know I have some people in my life that you know, like Steve Wynn, who is a dear friend of mine in most of Las Vegas, he's brilliant and all these guys are 18 years old. . years older than me, so they know the way forward and I can learn from them and move forward and anticipate things and that to me is incredibly valuable, yeah, very cool. Now I want to ask you how you personally handle a breakdown, because I have been in your workshop and it was