What’s up Believe Nation? I started the MentorMe series with the goal to try to learn from people who’ve done a lot more than us, hang around them a little bit longer, and by being in their environment, hopefully some of their mindsets, their beliefs, their way of thinking seep into us to help us become the best version of ourselves.
So today we’re going to learn how to be unshakable with Tony Robbins. Mentor me, Tony.
And as always guys, as you’re watchin’ the clip, if you hear somethin’ that really, really resonates with you please leave it down in the comments below and put quotes around it so other people can be inspired and also when you write it down, you’re much more likely to lock it in for yourself too. Enjoy.
#1: Change Your Mindset
Interviewer: Tony, the idea of being unshakeable is clearly more than money, but in this context, what does it truly mean to be unshakeable?
It’s a state of mind.
It relates to money because most people, when they’re trying to figure out how to create financial freedom create more stress for themselves worrying about what’s going on. And when you’re truly unshakeable you have the mindset where you understand how the market works, you understand that real estate can go up or down, stocks can go up or down, but your family can still do well.
Unshakeable is a bear market can come, a correction can come, and there’s no fear in you, or if there is a little fear, we’re all human, you don’t stay there, you find a way to break through, you find your center. And when you have that center, you do what’s right to be able to take care of yourself and your family.
“When you’re truly unshakeable you have the mindset where you understand how the market works, you understand that real estate can go up or down, stocks can go up or down, but your family can still do well.” – Tony Robbins
And I was interviewing about a year and a half ago, you know, the former fed chair, Alan Greenspan, who for 19 years, the most powerful man in finance in the world, under four different presidents.
Spent five hours with him, about three privately and two on stage in front of a group, and one of my final questions to him, and we talked about all this crazy change and all this volatility, and how do people get things together, I said, look if you were back head of the fed today, what would you do?
And there was this long pause, he paused, he paused and then he leaned into me, he said, Tony, I’d resign . And that did not build much confidence in me or anybody else who’d be watching.
Understanding certain facts
And yet, in the midst of all that, as you well know, there’s a few unicorns in the financial market, very few. These people that have found a way to do well over all the decades, in good times and in bad. And they know what it takes to be unshakeable.
And it isn’t just guts or confidence, it’s understanding certain facts that when you know them, they free you. The metaphor I give people is that, you know, if you go, and most of us have heard the old Sufi metaphor of, you know, the man is walking along in the middle of the night and he sees a snake and freaks out, runs away.
And he comes in in the morning and what does he see? It was a rope. And so once you know it’s a rope, you can be there in the middle of the night and you’re not scared again. This book, Unshakeable, is this, it’s really a financial freedom playbook for anybody.
It’s the real essentials about how to go from where you are to where you really want to be, but how to do it with peace of mind. How to do it even when things are volatile and enjoy yourself.
#2: Be Prepared To Seize Opportunity
I wanted to write a book that would protect people because we all know a crash is coming. And if you’re not in the market, you’re still going to experience it if you’re not prepared for it, because it effects the economy as a whole.
And every five years we have, on average, we have a bear market or a crash, and it lasts a year, and it drops 33%. But every single one of those, you don’t lose any money unless you sell. And it’s really important for Americans to understand this because America’s unique, in 2 1/2 centuries, every crash is followed immediately by an explosion up and a bull market.
So you all remember 2008, you remember the market dropped almost 50% from peak to trough if you’re aware of it. But from March 9th, what, a day or two from now, is the celebration of it, it went up in the next 12 months 69% and it’s been going up ever since for 250%.
So, you get really wealthy when those numbers change. So what I want to do is free people from the fear, not by enthusiasm or positive thinking but by facts. The facts are, there’s a correction every year.
We want to prepare so you’re protected
You shouldn’t be surprised when the market corrects. Last January was the worst opening in the history of the stock market, and we had a record-breaking year. People lost 2.2 trillion if they sold, but if they stayed they went nowhere.
So when you know that every single year there’s going to be a correction, now a correction by the way means it drops 10 up to 20% from the peak. A bear market or crash is 20% or more. But every year since 1900, for 116 years, we’ve had a correction, it’s like winter, you’re not surprised when winter comes. Some are long, some are short, but you know it’s coming.
Interviewer: You’ve even got a chapter in the book called Winter is Coming.
Yes, yes. It’s my HBO special . But the reason I say that is if you know it’s coming, we want to prepare so you’re protected, but also, for everyone listening, everyone who’s joining us online, think about this, if you’re a millennial.
For example, you got all this debt from college, it’s so imbalanced right now, and you think you’re never going to get free, or you’re a baby boomer and you never got started and you think it’s too late.
Believe it or not, the crash, the next crash, is the greatest opportunity in your life to leapfrog from where you are, where you don’t want to be financially, to where you want to be, ’cause everything goes on sale.
“Stop being stressed, time to become unshakeable, which simply means you have a plan, you know what’s going on you’re not fearful ’cause you know how this works long term and you’re not going to be taken advantage of, you’re going to take advantage of the environment.” – Tony Robbins
Listen, the ladies in this room, if your favorite outfits or shoes are on sale for 50% off you’re pretty damn excited, right? Well guys, if I said to you, what’s your favorite car, and you said a Ferrari and I said you get it for 50% off, guys’d be out of their mind.
But when the stock market drops 50%, it’s on sale, most people freak out. Not Warren Buffet, not people like that. I interviewed a guy named Howard Marks, he was investing a billion dollars a week in 2008 and 9, when the market was through the floor.
Stop being stressed
And now he’s worth a hundred billion dollars ’cause he bought everything for pennies. You got to think of it this way, when things are goin’ really great, what do people want for the price of their home, or the price of their stock, or their business? Its real value, or more?
When it’s going up like crazy, everybody wants more than it’s worth. When it starts crashing what will people take for their car, for their business, for their stocks, what will they take?
Anything they can get. And so those opportunities are the greatest ones in your life, and here’s what you got to know, if you’re stressed by worrying about the market or the economy, there’s a correction every year, you’re going to be stressed forever.
If you’re 35 and you’re going to live to 85, you got 50 more corrections to go through, and you know, a bear market comes every five years, so you’re going to have 10 more bear markets in your life.
Time to stop being stressed, time to become unshakeable, which simply means you have a plan, you know what’s going on you’re not fearful ’cause you know how this works long term and you’re not going to be taken advantage of, you’re going to take advantage of the environment.
The goal if you own a business, and I would assume a lot of your viewers are business owners or are getting started in business. No matter how good you are in business, think about this, the one universal rule that idiots in finance know, is diversification, it’s the only free lunch, you got to diversify.
Because if you put all your eggs in one basket, no matter how good the basket is, one day that real estate market, that stock market, that bond market, that collectables market, whatever you invest in, Ray Dalio showed me statistically it’ll drop 50 to 70% on a day.
Now, if you’re later in life when that happens, it’s over for you. So you have to diversify and yet most people they know real estate, so they do it, or they know stocks so they do it, or they grew up with their parents flipping things. And it’s the wrong thing to do.
So you’ve got to diversify in order for you to be able to truly succeed, and that’s why when you own a business, if you put all your money in your business, which is what most of do naturally, perhaps you see a lot.
“No matter how good you are in business, think about this, the one universal rule that idiots in finance know, is diversification, it’s the only free lunch, you got to diversify.” – Tony Robbins
Lewis: A lot of risk.
You put all your eggs in one basket and there’s things that can happen, I mean, you know, let’s say you spend 20 years and you figured out how to put together the ultimate map. And you remember Garmin came out with this thing called a tomtom, I don’t know if you remember, you used to put on your, are you old enough to remember that? You could put on your phone.
Lewis: Of course, yeah, yeah, yeah.
Or you just put on your dash. Cost a hundred bucks, it was a breakthrough.
Lewis: They were makin’ like a hundred million or something, or yeah-
They were, six months later, what happened?
Lewis: The iPhone came out with Google Maps.
Go on with your life
That’s right, these little bastards, excuse my French, came out with it, put Google Maps, put their own map on here, and it cost how much? Zero. What’s that going to do to your business when someone takes your product or service and gives it away for free?
So I always tell people, competition happens, technology happens, what you must do is have a second business with no moving parts, no people, no time, maybe it takes you two, three days a year for two or three hours after you’ve read the book. You put it in place and you measure it two or three times a year, that’s it. Go on with your life. Now if there’s a trouble in your business, you’re financially set. I, in my life, have 31 companies now.
We have, what do we have, 1200 employees, 7 different industries, we do five billion in sales. I mean I, that used to be me and my seminar business. It’s grown geometrically. But with all those moving parts, the only way I’ve been able to succeed is because I’ve taken everyone of those businesses and I’ve diversified my assets so that when things were in trouble.
I still had enough economics to take care of myself and keep the business going. So, everybody needs to create a money machine, that works while you sleep, that doesn’t have moving parts, and that’s what this is really about.
#4: Get In The Game
Interviewer: Can you talk about what it means to discuss the market as a game and how that might be a dangerous concept?
Sure, first of all, the reason I called the other book Money Master the Game is that every wealthy person I interviewed called it a game, every single one. And other people were saying, that’s irresponsible, that’s horrible to call it a game, this is the dumbest thing, that’s a, but see, that mindset is what’s keeping you from investing in the first place. So, you can be in a game, it can be a difficult game. The challenging games are usually the ones that we like the most.
But this is a game that can reward your family disproportionately to any other game that’s out there. Now, some people play games aggressively, some play things more in a secure way. Your style is more secure. And what I teach in this book is we want to have a style that makes you feel good ’cause you may make a bunch of money but you’re stressed all the time, it’s not worth it.
“You can be in a game, it can be a difficult game. The challenging games are usually the ones that we like the most.” – Tony Robbins
There’s a way to make money your slave, instead of you being the slave to money. But let me explain. It’s not put all your money in the market, It’s really two things, It’s first, you’ve got to decide the most important financial decision of your life, and that is to become an owner and not just a consumer. If you have a, I see a bunch of iPhones recording this right now-
Interviewer: And just watch your foot, ’cause there’s glass of water there-
No matter how much money you make, you can screw it up
Yeah, thank you for catchin’ that. If you’re a, yeah, I’m an active human so things move around with me. But if you got an iPhone and you don’t own Apple, or better yet, you don’t own the index to the S&P 500, the best 500 companies, you’re makin’ a giant mistake. ‘Cause you’ll never earn your way to financial fortune.
Even people that make just loads of money, the actors, the actresses, the athletes, where are they 10 and 15 years later? I mean, 50 Cent made a hundred million dollars on vitamin water, he got a tip, and he got like a 2 or 300 million dollar net worth and he’s bankrupt. He bought Mike Tyson’s house, 25,000 square feet, and Mike Tyson made a half a billion dollars and went bankrupt.
Right now, I don’t know if you saw, Johnny Depp, I don’t know if it’s going to happen or not, but the papers are saying he may go bankrupt. He made 3/4 of a billion dollars as a movie star but he spent $30,000 a month on wine, he must be feelin’ good, and secondly, he took Hunter Thompson, the reporter, he burned his body and paid $3 million to blow his ashes into the sky in a cannon.
So, no matter how much money you make, you can screw it up, right? But if you will just decide, there’s a percentage of my income that no matter what, I’m going to have it automated, I’m not going to see it, it’s going to go straight to an investment account. And I don’t know if it’s 10 or 15 or 20, those numbers sound gigantic to most people.
Even if you start with five and build, that income does not go to anybody else and then you put that into compounding. So listen to this, there’s a young man, true story, a Theodore Johnson, 1950s, worked for USP, never made more than $14,000 in annual income in his entire life, retired with $70 million and he didn’t inherit a dime.
He gave away 35 million while he was alive. Now how is that possible? Because of compound interest. When I interview all these investors and say, what’s the biggest mistake Americans make? He said, they all said, they don’t tap into compound interest. They know intellectually a little bit what it means, but they don’t do it. They don’t do it consistently. So what do you do-
Interviewer: It basically just means that the profits you make can go back into the investment.
“There’s a way to make money your slave, instead of you being the slave to money.” – Tony Robbins
You keep reinvesting and it keeps growing but it grows geometrically, right. And so, a friend of his came to this man who worked for UPS and said, “I’m going to make you rich. “We’re going to put a 20% tax on you.”
And he said, “I can’t give up 20%, “I can’t pay my bills if I do that.” He said, “Listen, if the government raised your taxes 20%, “and you’d claim, you’d scream, you’d cry, “you’d complain, and you’d pay it, “and you’d get adjusted to it.” But he said, “This is not goin’ to the government. “This is goin’ into an account for your future.”
You don’t need a lot of money to be wealthy, you need time.
And that compounding is what made him that much money. In the book I give you an example of an 18-year-old boy whose father convinces him that he should save $300 a month out of his income. It’s not a huge income, that sounds like a lot.
But when you automate it, you forget about it, it’s perfect. You adjust. Well, he does this from 18 years old to 27, for eight years. So the total amount of money, $300 a month, it’s about 4000 a year, that’s $28,000 total.
He then puts, he leaves it in the market and never adds a dime to it from 28 years old on. At 65, because the market over those 30 years grew 10%, his money has compounded so much that he has $1.8 million. You don’t need a lot of money to be wealthy, you need time.
Interviewer: So you’re saying that even if I have student debt that I’m struggling to pay off, even if I’m making say, a thousand dollars a week, that I should still try to put a percentage, or make it a point to put a percentage, not just into a savings account, but into an investment account.
Into an investment account, where to put that money then we teach you the ways to do that, and it’s got to be diversified. Never put all your money in the market, right.
Interviewer: I want to, okay.
#5: Assess Risk Properly
Interviewer: What are the five takeaways that somebody can take from this book where they can really put them actually into action?
Well I’ll tell you the four things that, I interviewed these 50 unbelievable investors, had in common, they’re all different. You know I interviewed people that are macro traders. I interviewed people like Warren Buffet, right, value people.
I interviewed people that it’s blood in the streets type of people, you buy when the world is going to hell. And they’re all different, but they had four things in common real fast. Number one, every single one of them was obsessed with not losing money.
Guys like you and I tend to say, how do we make money for our companies, for ourselves, as an investor. Their entire focus is not losing money because they know if you lose 50%, it takes 100% get even.
Interviewer: Well, it’s about becoming comfortable with risk.
Get the largest upside
Well it’s more than that, these guys are obsessed with not being comfortable with risk, they don’t want to take risk, and the second key that they do is they all are focused on asymmetrical risk reward. Most people think the most successful investors take huge risks to get huge rewards.
And in reality, they take the least risk humanly possible to get the largest upside. So their whole focus is how do I get a three to one, or a five to one? If I risk a dollar trying to make five and I’m wrong, I can risk ano-, I can be wrong four times and break even.
” The most successful investors take huge risks to get huge rewards.” – Tony Robbins
So they have a completely different approach. They’re all very focused thirdly on tax efficiency because you only have the money you get to keep. And fourthly it’s all diversification. And those four things fundamentally are the frame from which you start to design a portfolio.
#6: Model Success
How did you go from basically not having a hot meal to you know, basically being a guru, an international guru, doling out financial advice?
Well it’s interesting, I was just, Worth magazine just named me their Power 100, it was the 100 most influential people on global finance, along with Carl, all the guys I interviewed. But part of it is I believe in modeling, I believe success leaves clues.
If someone has done very well financially for decade after decade, they’re not lucky, they’re doin’ something different. If someone is fit and healthy, and they’ve managed it for 20 years, they’re lucky, they got a great relationship, they’re not lucky.
“I believe in modeling, I believe success leaves clues.” – Tony Robbins
So I’m really good at deciphering what those things are. So I would sit down with someone like Jack Bogle, you know, who built, you know $3 trillion industry, right, you know everybody’s doing their Vanguard.
And I’m suppose to have a 45 minute interview and we go four hours, and he says, he’s been in the business 65 years, and in the book he says it was the most penetrating, emotional interview he’s ever done in his life, ’cause I kind of extract it out of their brain and then make it simple so you can apply it.
Evan: So thank you guys so much for watching, I’d love to know, what did you learn from this video? What clip spoke to you the most? And what are you going to take from these clips and immediately apply to your life or to your business somehow? Leave it down in the comments below, I’m super-curious to find out. Finally, I wanted to give a quick shout out to TridentLion, thank you so much for picking up a copy of my book, Your One Word, and for making that awesome YouTube video on it as well. I really appreciate the support, and I’m glad that you enjoyed the book.
Narrator: Today this video is all about Your One Word.
Evan: So thank you guys so much for watching. I believe in you, I hope you continue to believe in yourself. And whatever your one word is, much love, I’ll see you soon.
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