What will we do when the next recession comes? Will there be one? You can bet on it. In fact, you should bet on it. Why? The answer to this question will tell you why: Did we actually fix the problems that caused The Great Recession in 2008? NO. What did we do instead? We bailed out virtually all of the criminals that caused 2008. We printed trillions of dollars worth of currency. We artificially suppressed interest rates. That was 9 years ago and we still haven’t seen the detrimental effects of those decisions. In my opinion, we are going into an environment of deflation. But didn’t they just raise interest rates? Yes, and I believe they’ve only been raised enough so there is margin to lower them again when this next crash happens. Do I know what will cause the crash? Nope. It could be a number of things, all of which would just be a speculation. But I do understand that it is going to happen. It’s simple mathematics.
Now, if you’re with me, I’m going to tell you what we can do during the crash to survive. If you’re not with me, you are either in denial, you sell financial products, residential real estate, or mortgages and this is where you stop reading. (*Pause so you may exit*) Great! For those of you who are still reading this, I am about to tell you the ONE single thing you can do during the crash to survive: NOTHING. That’s right. Absolutley nothing. If you react to poor economic conditions in the moment they are happening, you’ve waited too long. You’ll have no options. In order to survive during a recession or depression, we need to have prepared ourselves before it ever happened.
Please, don’t take my word for it. Study for yourself. The chart in the header of this article tells the entire story. You can see three distinct categories: The Top 1% of Wealth (if you aspire to be in the group Click Here), The Rich (top 10-1%), and The Rest of America (bottom 90%). Now during the good times, The Top 1% saved 30-40% of their gross income. They put it away. Their friends and family probably said things like “don’t you have enough?” or “you can’t take all that with you when you die.” or “why do you work so hard, don’t you already have enough money?”. They kept going and working the plan. Now look at the timeline on this chart. The great depression happens and The Top 1% don’t just stop saving, but they actually go IN DEBT! Wow! What happened? I’ll tell you what happened: they bought EVERYTHING. They even borrowed money to do so! Businesses failed, stocks plummeted, real estate prices dropped…and The Top 1% had decades worth of cash saved up. They went in and invested in and bought all of these assets for pennies on the dollar. We can hate on them or we can learn from them. I know you’re not a hater, so let’s go with the second option. During the good times, we need to constrict and economize.
Now let’s take a look at the second category, The Rich. Their numbers fluctuate with the economy. What you’ll see is they start high and slowly start saving less and less money. We can imagine that they are living the good life that they’ve worked so hard for. But what happens during The Great Depression? They try to save their way out of it. The result? They never again attain the pre-depression levels they once had. You see, they botched their affluence. Overall their trend has fallen consisently decade by decade. What can we learn? Success doesn’t make us bulletproof. We still have to be wise and work smart. Affluence is easier to lose than it is to gain. If you are caught in a cycle of gaining affluence, just to lose it again I can help (Click Here)
Lastly, let’s look at The Rest of America. The first thing I notice is from point A to point B on the timeline, the graph really doesn’t move. It fluctuates in between, but overall the results are always the same. The Rest of America also tried to save their way out of The Great Depression. As you can see it didn’t work. Sadly, The Rest of America is victim to whatever recession or depression is forced on them by Wall Street, the banking industry, and the government. It happens to them and at their expense. There is not bail out for the ordinary person.
Now that we’ve studied the data, we can analyze it and conclude. When this next crash happens, if you aren’t already in affluence, you will not come out on top. It hasn’t happened yet (personally I believe we have 18 months or less, but again that is pure speculation. Let’s stick with the data.). While things are still going good here are 5 things I would stop doing: 1. Buying stupid crap (I don’t need to tell you what those items are). 2. Purchasing homes. 3. Putting money in my deferred accounts (401k, IRA, 529, etc.) 4. Putting money anywhere near Wall Street and the stock market. 5. Obtaining debt on things that don’t earn income. (Now you can see why I said financial sales people, residential home sales people, and mortgage sales people won’t like or agree with this article for the most part.)
What would I be doing? Here are my thoughts: 1. Confront my current finances and behaviors for what they really are. 2. Set goals and targets. 3. Do the math 4. Develop a formula or strategy to get there. 5. Find a coach to provide accountability and ask great questions.
Ready for the surprise? My team of Wealth Coaches are trained to hold you accountable to doing those 5 things. We offer Goal Setting, A Proven Formula, Accountability, and products and services (yes we sell things) that help protect your money until you’ve accumulated enough to invest in real cash flowing assets that build indestructible wealth! If you don’t have this in your life, you need to schedule a free consultation with one of our Wealth Coaches so they can show you exactly how A.G. Capital Group can do these things for you. Click Here to get more information.
Don’t wait until the next crash happens before you react and try to do something about it. Success starts today and right now. Speak with a Wealth Coach. The only person who is going to bail you out of trouble is you and the only time you’ll be able to do that is now.
Jerry Fetta is a husband, son of Yahweh, Entrepreneur and owner of 5 privately held businesses. Jerry lives in Alaska with his wife and 2 dogs. His no-nonsense approach to business, finances, and life speaks truth and provides clarity to his clients and followers. His personal mission in life is to empower millions of leaders to own their God-given, ultimate potential