If You're Living Paycheck To Paycheck, Do This Before The Next Recession | Jaspreet Singh

0:00I have a brand new book called Make Money Easy. and if you're looking to create more financial freedom in your life, you want abundance in your life and you want to stop making money hard in your life, but you wanna make it easier, you wanna make it flow, you wanna feel abundant, then make sure to go to makemoneyeasybook.com right now and get yourself a copy. I really think this is gonna help you transform your relationship with money this moment moving forward. We have some big guests and content coming up. Make sure you're following and stay tuned to this episode of The Daily Motivation Show.

0:38Hi, my name is Lewis Howes and welcome to The Daily Motivation Show.

0:49Every 10, 20 years, something's happening. We have seen a recession every decade in our economy for the last century. In fact, the longest period the United States economy has gone in modern history without a recession was 2008 to 2020. And that was, you know, quote unquote, a forced recession because the economy was shut down because of the pandemic. But that was the longest period ever in our modern history without a recession. So now understanding, guess what? Recessions happen. Market crashes happen. When are they going to happen? I don't know, but I want to be prepared for whenever the next one is.

1:21What does that mean to be prepared? That means don't spend all of their money. That means take some of that money and have it either invested or ready to be invested. And again, this all goes into your strategy. Because for some people, they're going to set up a system where I'm just going to invest every week, every two weeks, every month, and it's just to set it and forget it. And that's fine. And that means when the next downturn happens, you just keep investing and you just keep riding the wave. Yes. For others, that means I'm going to invest every week, every month, but I'm also going to put money into a separate account.

1:50That way, when I see a good opportunity. There's market opportunities when you see a market downturn, but there's also investment-specific opportunities where a stock is going down or it's undervalued and you see a great opportunity to buy. And that could happen during an economic boom. I saw the same thing in real estate. I made a video about this, I think 2021 or 2022, where that was one of the hottest housing markets ever, if you remember. That's a mortgage age for low. Everybody was buying. Homes were being sold way over asking price. and I was still finding good rental properties. Really?

2:23It was difficult. It was more hard. It took more work. I had to be more picky, but they were still there. And that's where it's that financial education. But then it's also then the third part, which is the trends. Where are you going to put your money? So in real estate, that means which neighborhood are you going to put your money in? Is it single family? Is it multifamily? Is it commercial? In the stock bracket, that means, well, do you want to be investing in artificial intelligence? Do you want to be investing in international companies? Do you want to be investing in healthcare? care what is the general industry where is the trend going and that's where now you got to understand i got to know the financial education i got to be prepared and i got to know the trends and these things don't start after the fact people want to then start doing this when they i see a great investment opportunity but i have no money i don't know what to do well so it's a little too late to start worrying about that now i mean you got to start educate yourself first yeah yeah and prepare and that's why it's all about you know being financially healthy it's It's just like being physically healthy.

3:21Actually, you have more benefits being financially healthy because when you work to be physically healthy, I can put in six months of work. If I really dedicate myself for six months, I can build a shredded six-act and look great and look really nice. But then if I go back to eating donuts and ho-hos, six months later, I'm going to be back to being fat. You don't build that kind of forever reserves, but you can with wealth. If you invest for a big chunk and then you don't invest for a while, it's going to keep compounding that chunk. I call it a decade of sacrifice. If you put in that decade of spending less and earning more, and you take this money, and instead of buying that Gucci, you go out and you buy these assets, stocks, real estate, whatever it might be.

4:02Buy Gucci stock instead. Right. You buy investments. And now let's say these investments are paying you monthly or quarterly. Well, now you can spend that money on dumb things. You can spend that money at Gucci, buying the extra guac, buying whatever you want. And those assets are still there. You start, you build up reserves. You can't do that with your body, but you can do that with your wealth. And that's what wealthy people want to do is they want to build these reserves first. But that, you know, it goes back to, well, what do I do? I'm making$30 ,000, I'm making$50 ,000, I'm making$500 ,000.

4:32It's the same thing. Start by number one, not spending all your money. You invest the money you don't spend. You reinvest the cash flow, and then you work to earn more money. And the reason why you're working to earn more money now is so you have more money to invest. Because the reality is now when you earn more money, you can invest more money. Because at the end of the day, a penny saved is just a penny, right? If I'm making 50 grand a year, maybe you put aside first$5 ,000 a year to invest. And then you realize, wow, this is great. I want to invest more. Now maybe you're investing$10 ,000 a year out of your 50 grand.

5:05Maybe you get to 15 ,000. but there's really only so many dollars you can squeeze out of this limited pie. But if you can go from$50 ,000 to$250 ,000, now there's a lot more dollars you can invest and a lot more spending power too. And then everybody says, well, how in the world am I going to go from$50 ,000 to$250 ,000? My boss is never going to give me that raise. Well, maybe you got to start thinking a little bit differently. Again, it's where are you going to put your focus and attention? That's where you're going to see the most results. If you want to increase your income, you got to learn, how do I increase my income?

5:38And the problem is most people are focused on increasing the income without having any financial education. And they're spending it all. You're spending it all. And they think, I want to go from$50 ,000 to$250 ,000 a year so I can have a nice Bentley, so I can go on a nice vacation, so I can have this nice stuff. But in reality, you got to know the financial education first, that way you know how to use the more money, and then you learn how to make more money. And it's all accessible. Yes. Go to YouTube, learn, read books. There's so many opportunities out there. Great, great channel called Minority Mindset that you can check out too.

6:12Thank you so much for listening to today's episode of The Daily Motivation. And I hope you have an amazing rest of your day. If you enjoyed this episode, make sure to click the link in the description. That will take you to the full episode of our main podcast on the School of Greatness. And if you are loving the daily motivation, please follow us over on Apple Podcasts and Spotify and leave us a review over on Apple Podcasts right now. And if you want more exclusive content and ad-free listening experience, make sure to subscribe to our Greatness Plus channel on Apple Podcasts right now. And if you want to get even more inspiration from our world-class guests and learn how to improve your life and take it to the next level, then make sure to sign up for the Greatness newsletter and get it delivered right to your inbox over at greatness.com slash newsletter.

7:02Again, have an amazing day and I'll see you tomorrow with another episode of the Daily Motivation Show.