We all want to have financial freedom. We know that will make it possible to do what we want to do – like going to cinemas and nice restaurants, travelling around the country or the world – without worrying about the future. How we understand our financial freedom varies from person to person. Many affluent people will still think that they don’t have financial freedom – the reason, because they think they may lose their riches. If you don’t have financial freedom – the way you understand it – you are likely to believe that it is very difficult to achieve it even if it is possible. In The Path by Peter Mallouk and Tony Robbins says that it is quite possible – and not very difficult – to achieve financial freedom. But there are clear rules that you must follow to reach the summit. On the way to the summit, there will be pitfalls and roadblocks. You will come across self-interested people who would take you away from the right path. You need to avoid such scammers.
Mallouk and Robbins say that becoming financially independent isn’t rocket science, but there is also no magical black box to becoming financially free. Your future self cannot afford to climb without the groundwork of ropes and solid anchors. If you are committed to your personal vision of financial freedom, you must protect yourself and participate in your own rescue. The long road to financial freedom starts with your first job. About half of Americans use a financial advisor. Mallouk and Robbins say that choosing the right financial adviser is the most important decision you make about your future. There are many things to look for in an advisor, but if you can navigate the four core issues of conflict, custody, competence, and customization. You will eliminate about 90 percent of advisors from your list. Your odds of finding someone competent, who won’t steal your money, sell you his or her own products, or lead you astray, will be much higher if you take the 4C’s into consideration when choosing an advisor.
Before you invest a single dollar, you must have a plan. Mallouk and Robbins say that a financial plan does not have to be a 150-page document that map every minute of your life in the future. But this plan must clearly define your financial goals. A good financial plan evaluates more than just your progress toward financial independence. It should also evaluate more than just your progress toward financial independence. it should also evaluate how you would be affected by the unknowns – the things you cannot control. For example, how would you and your family be affected by a long-term or permanent disability, the potential need for skilled nursing care later in life, or for married couples, the untimely death of a spouse.
Mallouk and Robbins say that the financial decisions need to happen early on in your investing journey. You don’t want to have regretful conversations with your spouse and loved ones about how you should have saved better. You should always have a clear understanding of where you are today financially — which assets are bringing you wealth, which assets are taking wealth away from you, and how much time you have to reach your financial goals.
The Path is your first step on the journey to financial freedom. It will help new and old investors gain confidence and develop personal investment strategies for achieving freedom. The authors share their experience in the field of personal finance and investment strategies, acquired over several decades, with their readers. It is a very comprehensive and authentic financial reference book that teaches you the ins and outs of financial markets. The authors present complex financial ideas in a very friendly and clear way. It is written in a very readable format so that those who have no knowledge of economics can also benefit. It is for those investors who seek financial freedom and who want to know more about the specialized form of investment.