- This coming recession is your opportunity to get rich.
Well, that's what all the YouTubers seem to be saying.
- You need to get rich and you need to get rich quick.
- So let's talk about how you can win
while others are losing.
- The opportunity that is at our feet
as I'm filming this video is absolutely insane.
- So by being aware of the following eight traps
you'll be able to make much better choices with your money.
Money trap one, being scared to take risks.
Being scared of risky opportunities
is understandable in such uncertain times.
As an investor and a businessman,
my job is always to minimize risk.
Risk might sound sexy
but taking too much on is not a smart move.
I say this, but even when you've done everything
in your power to minimize risk,
there is still going to be some in every opportunity.
Otherwise, everyone would be doing it.
And we all know the cliche saying
that when something is too good to be true, it probably is.
If you are lucky enough to be between
the ages of 20 and 50,
then you're at huge tipping point in your life.
The decisions you make in this 30 year window
will cause huge ripples that affect your loved ones,
like your parents, grandparents, partner, and kids,
be that positively or negatively.
To put it simply, this time period could make
or break your financial future.
So when an opportunity that could completely
change your life present itself,
will you be paralyzed due to the recession
or you objectively analyze the risk
and act not out of fear, but ambition.
Many millionaires say one
of their five biggest life regrets was not being bolder.
The thought of what could have been eats away at you
if you don't take that small leap of faith.
Money trap two, investing in things you don't understand.
This is the number one rule of investing.
It is extremely true
but every time a crisis happens,
people totally ignore it.
It's great there's so much information
being shared online now.
The rich are finally giving out their secrets
and people are listening.
However, it is important to be careful
about what advice you act on.
If you don't completely understand an investing opportunity,
stay away from it until you do.
I get lots of messages asking me my advice
about stocks, cryptocurrency, and real estate.
It's obvious that some of these people have
just watched a 10 minute video on the subject
and are ready to put all their hard earned money
into something that they don't fully understand.
Like I said before, risk is good
but it's your job to minimize that risk
by doing as much research as possible.
You should never just take advice
from one person on the internet.
As everyone has different opinions
on investment opportunities.
It's best to pull lots of opinions together
so you're able to make a more informed decision.
Many years ago, when I was in my early twenties,
I nearly put a big chunk of money into an investment group.
Everything they touched seemed to turn to gold
and I didn't really understand how they were doing it.
So I passed on the opportunity.
Had I invested $50,000 a year later,
I would've lost over $300,000
because they were leveraging every investment by six times.
It's a good lesson to learn though
because I would've previously thought the amount
I invested would've been the maximum I could lose.
I had yet to discover the perils of margin trade in
and I'm glad it didn't cost me $300K to learn that lesson.
Luckily now there are apps like public.com
where you can interact with a community of investors
and learn together.
They also give you a free stock
worth up to a thousand dollars when you sign up.
I'll leave that link in the description below.
Money trap three, not spending enough.
This may sound a bit strange, not spending enough.
I thought you were meant to spend less and invest more.
Isn't that the idea?
Well, you would've thought so.
Well, the thing is,
if you don't spend enough money on good quality products,
then it could actually end up costing you more money.
Being frugal with your money, in some situations,
isn't a bad thing.
Like, not spending too much on takeaways
or shopping around for the best grocery deals.
However, if people start trying to cut costs on everything,
then it could be pretty dangerous.
Let's say you have to take your car in for a repair.
If you go to the cheapest car repair shop
then you might be lucky enough to get a good service.
However, it's more likely that
you aren't gonna get a quality job done.
As they can't afford to take the time
to look after your car carefully.
They may cut corners and miss something
or even lie about fixing the issue.
This means it's not gonna be long
before your car has problems again
and you'll have to go back and get it repaired properly.
You might as well have spent the extra money now
which will save you money in the future.
And of course, that's the best case scenario.
What if the car is still dangerous
and it causes you to have an accident?
There are many things like a car repair
that is best to pay a little bit more for
to be on the safe side.
Buying quality products and services also
helps support the people that are offering them.
If no one buys these quality services
then they won't be there when we need them.
Money trap four, taking your job for granted.
With more people than ever losing their jobs
and businesses going bankrupt,
it's really not the time for people
to take their job for granted.
If you have a steady job,
then you are in a better position
than a lot of people at the moment.
And you should do everything in your power
to keep it that way.
If you want the ability to invest
and having a strong income source,
such as a job, is imperative.
Not everything is under our control.
However, when a business is in trouble,
they often have to make some tough choices
about who to fire first.
When the people in my team go the extra mile
in a time like this, it doesn't go unnoticed.
If someone makes themselves indispensable to a business
then they're gonna be the ones holding
onto their jobs longer than anyone else.
I've noticed a trend going around
on TikTok called, "Silently Quitting."
The basic idea is to do just the bare minimum at your job.
I couldn't disagree more with this mentality.
It's important to remember
that everyone is in the same boat.
And ideally, an employer would love to save everyone's jobs.
In order for this to happen,
then the business needs to be performing
to the best of its ability.
One of my past members of staff would moan
and complain about everything.
It brought the whole team down.
Then he decided to leave because he was offered
a job with a higher salary and more perks.
As he left, I remember him saying,
"You'll be begging for me to come back."
He lasted less than a month at his new job
as he couldn't hit the targets.
He also hated the traveling and the long hours.
I'm not saying he begged for his job back, but he did ask.
And as you can imagine, there was no position
for someone that just does the bare minimum.
There's an old saying that the grass
is always greener on the other side,
this is rarely the case.
Money trap five, payday loans.
Payday loan companies are like predators during these times.
They see people who are struggling
and they advertise to them nonstop.
Every time they open Facebook,
every time they look at a billboard,
every time they read a newspaper,
"Get paid now, quick and easy.
Pay us back later."
Although a lot of people have become aware
of this money trap,
there are still lots that will consider taking out
a payday loan and paying it back later.
This is one of the worst things someone can do
as it has the potential
to totally destroy your credit score.
Which could mean that buying a house
or a car in the future could be a big challenge.
The interest rates on loans like these are sky high.
So you end up paying back way more
than you actually borrowed.
By simply tracking your spending,
you can avoid being in a situation where these
predatory companies can take advantage of you.
Money trap six, not having a side hustle.
Although you shouldn't be taking your job for granted,
it also shouldn't be your only way of generating income.
Think of a job as the foundation of your life.
If you're balancing everything on one foundation,
when an earthquake hits, such as a recession,
your whole life is gonna crumble away.
By having a side hustle,
you create another stream of income
that strengthens the foundations of your life.
Now, if you lose your main job,
you still have a source of income to pay your bills
and it can prevent you from falling into bad debt.
My early jobs only just paid enough
to keep my head above water.
So I always had a few side jobs.
One that was great was teaching people
to fly model helicopters.
I developed a skill that many struggled to master
and I charged to pass on this skill.
The extra money I earned covered all my normal expenses.
So then, I had the ability to invest all
of my salary into starting my own business.
It might seem impossible to start a side hustle
when we're going into a recession.
But if you look hard enough,
there are online industries that are booming
such as selling digital products and affiliate marketing.
People have the tendency to turn to entertainment
in hard times like Netflix, for example,
and therefore don't bother putting in
the extra effort after they finish their day's work.
But this is the time to double down
and hustle as much as possible.
Money trap seven, not living within your means.
People have got used to the good times.
So many are spending more money than they actually have.
You've seen the people buying expensive cars
that you know they could never afford
with their income alone.
People are racking up the credit card bills
like there is no tomorrow.
This isn't a good idea in the best of times
but it's especially important to live within your means
or even below them when the economy is slowing.
By creating a budget
and cutting out all the unnecessary spending,
you're able to invest more
and focus on what really matters to you.
After all, is getting the next car,
the latest clothes, and the most fancy house
really worth it if you end up having
to give up your future hopes and dreams?
Money trap eight, get rich quick schemes.
This is something I had to mention
as I'm seeing it more and more.
Clever marketers are selling online courses
that promise big things.
More often than not, the only people getting rich
are the ones running the scheme.
There is usually nothing wrong with what they're teaching.
Amazon FBA, Dropshipping, and Affiliate Marketing,
they're all real businesses that have
the potential to make you some money
but they market towards people without any experience.
They sell a dream that anyone can become rich
if they follow their simple formula.
You have to ask yourself, if it was that easy,
why aren't they doing it themselves?
They basically package a legitimate business idea
in a way that looks attractive to the everyday person
but fail to mention that their success rate
is near rock bottom.
So whenever you see an ad from some guy standing
in front of a Lamborghini promising you
the world on a silver platter,
it's probably a good idea to be a bit skeptical
and do your own research.
You're now ready to learn exactly how to invest
and benefit from the Cameron recession.
So I recommend watching this video next
but don't click on it just yet.
Make sure to subscribe if you want to grow your wealth.
Okay?
I'll see over there.