In this book summary of Freedom Money by Brian Robben, you’ll find my notes, high-level ideas, valuable lessons, and important action steps.
Freedom Money Summary
If you work a 9 to 5, your salary isn’t as stable as you think. All it takes is your company downsizing, you underperforming, a bad economy, or 1,000 other scenarios that can take your income away.
To make sure you maximize your income: always keep learning new skills in your field, work hard at your job, take on new projects, negotiate your salary, network, read industry-related books, do freelance work on the side, and get paid your market value.
The most important factor to getting rich is not making a bunch of money, it’s smart money management.
Credit card and student loans debt is the greatest roadblock to financial freedom. Focus on aggressively getting rid of any debt.
“As long as you’re getting paid full-time from somewhere, you’re most likely making enough money to achieve a rich life of financial freedom.” Don’t wait until you make a lot of money to start saving and investing.
You’re not going to stay committed to saving if you don’t have an emotional reason for why you’re saving. Saving for freedom, your family, or a special cause you believe in, has much more appeal than saving because you’re supposed to.
Want guaranteed savings? Automatically pay yourself first at the start of the month.
The way you spend your money says a lot about your goals. If you value freedom and time, you’ll spend money on assets like the rich do. If you value the short-term and trying to look cool or fit in, you’ll buy liabilities like the middle class and poor.
“You don’t have to be rich to invest, but you do have to invest to become rich.”
Growing your net worth is easy when you set up automatic monthly investments. Put in a little time upfront to set up this autopilot investing system, and then it’s hands off while you reap the profits.
Your goal is to get your money to work for you, so you’re free to prioritize things better than money: your health, friends, family, memories, and legacy.
Wise money management, above all else, is how you become rich and reach financial freedom.
Compound interest is the greatest money advantage you have on your side. So while you’re still young and can get the most out of this powerful tool, it’s critical you invest as much money as you reasonably can.
Freedom Money is all about striving toward a financial place—through your saving, spending, and investing—where you no longer have to trade your time, relationships, and happiness for money. Through handling your money the right way you’re 100% free to chase what satisfies you and gives your life meaning.
Three Favorite Quotes
“But, when you’re a wise money manager, you can make $50,000 a year for the rest of your life and become a millionaire. The approach of implementing financial intelligence will give you riches and freedom without fooling you and causing you to lose everything in the future.”
“The biggest reason rich people are able to get richer and not struggle is they know the difference between assets and liabilities, and they buy assets.”
“Waiting five years to invest at age 27 instead of age 22 costs you $546,337 at age 65. That’s a big chunk of change! Waiting seven years to start investing at 29 costs you nearly a million dollars.”
Action Steps For You
Reaching financial freedom isn’t a revolutionary idea. It comes down to basic money principles.
Spend significantly less than your current income. Use the added savings to both pay down debt and invest in index funds. (And if you don’t know how to invest or what to exactly invest in, buy this $5 ebook or $10 paperback. The information in Freedom Money is easily worth a thousands times that.)
Don’t waste another second procrastinating on getting your money right, because time in the market and compound interest are the ultimate advantages of a young adult.
That’s why you need to take control of your money today, or at least this week. Set up an automatic system that pays you first and invests each month to ensure you’re making positive financial progress.
That’s about it! When you do these action steps at a high degree, the possibilities are endless: work at your dream job regardless of pay, travel the world, take a two-year miniature retirement, change an organization through a donation, or retire early at age 35.
And after you read Freedom Money, pass along this life-changing information to a family member, friend, or significant other. What happens is you not only get yourself on the road to financial freedom, but you bring your loved ones with you to the party.
So share the wealth, literally!
Order Freedom Money
Or check out other book recommendations to become more successful.