We could be facing a full scale globalized depression,
which will impact your finances like never before.
And here's one of the seven things
you need to know in order to prepare.
Number seven, the Sink or Swim model.
This larger circle represents the world.
And this smaller circle is you.
Now, during a recession or depression,
there's gonna be a lot of pressure exerted on you
by the outside world.
Be this in the form of family,
your school,
could be the news,
the economy,
and also a growing sense of fear.
You can either choose to give up under this pressure
and let it drag you down
along with your hopes and dreams,
or you can repel this outside force
and swim to the surface.
I'm calling this the Sink or Swim model.
The key takeaway from this is that
even during a depression,
which was last seen between 1929 and 1939,
there are people that rise to the top,
gain power, and make money.
The main difference between a recession
and a depression is that the former
refers to an economic decline
that lasts for a few months.
While the latter is a decline
in economic activity that lasts for years,
basically a recession on steroids.
Yes, it might be harder to succeed.
However, when more people are being defeated
by the external pressure exerted
onto them by the world,
realistically your actual competition decreases.
This is because many people are trying to survive
and not thrive.
This limits their potential.
It puts a glass ceiling on their success,
meaning that no matter how hard they try,
they will feel confined by external forces.
Just remember the money is still in circulation.
You've just gotta find out how to make it flow
into your pocket.
Number six, look into low risk
high yield investments.
What if I told you you can make an investment
with a guaranteed return,
essentially risk free?
You're probably thinking,
I'm going crazy with old age,
but check this out.
Government treasury bonds.
They're paying the highest rate seen in 15 years
with the 10 year treasury topping, a 4% yield.
That means for every a hundred dollars invested,
you'll get $4 back per year completely free.
The fascinating thing about this is typically,
the longer you agree to hold upon for,
the more it will return.
However, quite the opposite is happening.
Shorter term treasury bonds are yield in higher returns,
which opens up an interesting opportunity
for investors to combat inflation
with very little risk.
I get it.
Bonds aren't exactly cool.
I mean, it doesn't even compare to the Dogecoin rally.
But the beauty of bonds is they don't lose
a 100% of their value in a year,
wiping out your investment with it.
And a pretty low risk considering the unlikelihood
of a government defaulting on you.
So as inflation and risk levels rise,
consider parking unneeded cash in bonds
to at least offset the rampant global inflation
we're currently seeing.
Number five, reduce the blood suckers.
If you wanna thrive during the next Great Depression
then you need to pay off your debt as fast as possible.
However, not all debt is created equal.
If you wanna become rich and don't have an income
in the hundreds of thousands a year,
you should be selective with a debt you clear there.
Once were two men named Chris and Karm.
Chris lived his life in fear
of death ever since having a credit card
and maxing out the limit for a new TV,
without understanding how to manage his finances correctly.
He never recovered from this.
Karm also had a similar experience.
However, after he made that initial mistake,
he started learning about the differences
between good and bad debt.
Once he'd clawed himself back from the abyss,
he bought his first house
and then went on to have multiple rental properties
and become a multimillionaire.
If you haven't guessed it yet, Karm is me.
You see these days you can get a loan for almost anything
be that a watch, a new car, or even the latest drip.
We're living in a world full of creditism,
and this is when people borrow
for anything under the sun,
and think about how they're gonna pay for it later.
I hate to say it,
but most of these people are probably in debt.
So with credit being so easy to get your hands on,
we need to remember to respect it.
There's one simple question you should ask yourself
before taking out any kind of loan and that is,
will this thing I'm buying take money
outta my pocket each month
or will it put money back into my pocket every month?
Another great method worth of considering
is a consolidation loan
as this allows you to take out a loan
and use the money to clear all debt,
consolidating everything into one simple payment each month.
Just make sure to keep an eye on the interest rate
of this loan to make sure you're not getting a bad deal.
But please make sure you don't max out
your newly cleared credit cards.
This will leave you in more debt than ever.
High interest debt can of course drag you down,
but so can some of your friends.
Number four, consider replacing your friends.
Did you know that 70%
of jobs are never even listed on the open market?
This just goes to show how true the statement is.
It's not what you know, it's who you know.
And if you ask me, I'd say that communication skills
and networking are up there
with some of the most important skills
when building wealth.
Now, I'm not gonna sugar coat it.
The start of 2023 is gonna be rough
and that's why having a network of entrepreneurs
and reliable friends is more important than ever.
But sometimes even if a friend is reliable,
the relationship may not be serving you anymore,
meaning you have to make some hard decisions.
Back in my early days of business,
I took the leap of faith to travel to China
and meet factory owners face to face.
One of the first people I came across
was a guy called Edward,
who after doing business with for many years
became a good friend and ally.
One day Edward was offered an amazing deal
to sell his business
and he would've been a fool to decline it.
It meant he was able to retire
and enjoy the fruits of his labor,
and I couldn't be happier for Edward,
and he deserved the exit as he's such a nice guy.
On my following trips to China,
I found myself meeting
with lots of different business owners
and my schedule was jam packed.
Edward reached out to me every evening
asking me to do something with him,
as obviously he had a lot of time
on his hands and I had to politely let him down.
This is because the relationship was no longer
mutually beneficial as our priorities had moved
in different directions.
And when traveling, I have to evaluate
how much time I'm spend in hanging out
as time abroad isn't cheap.
Some would say this makes me a bad friend,
however, if I'd have hung out with him every evening
then I wouldn't have been my normal happy self
as I would've been stressed out
about everything I had to do the next day.
So it's best I leave a space in his friendship group
for someone who can embrace his passions and new lifestyle.
Now, I know you might be thinking,
it's all well and good saying this,
but how can I find the right people
to surround myself with?
Well, my COO, Kai, didn't have the opportunity
to mix with high net worth individuals
before working with me,
so he found his community online
through watching YouTube videos and TV shows.
His role models became the people he watched
on his computer screen.
As currently over 12,000 like-minded people
in my free Strike It Big Discord server
discussing make your money, success, and power.
I never really talk about this.
I just pop a link in a description
for those that are interested.
If you wanna take things to the next level,
and as I like to say,
press the flesh that consider attending events.
Just recently I attended FinCon
and met hundreds of entrepreneurs, YouTubers,
and established brands.
There'll be an event out there that's perfect for you,
all you've gotta do is go and find it.
Number three, start a monthly budget.
Over the past few years,
records have been broken for the amount of money printed.
Trillions of dollars have flooded into our economy
and many of you have properly come into some money
that you didn't actually earn.
This makes sense as people are in desperate need of cash,
so it was only right that the government delivered.
The unseen knock on effect of this,
sky high company earnings
and excess spending from consumers across the globe.
When the economy is on the way up,
people spend money like it means nothing,
whether it be overspending on groceries
or the latest tech.
However, as this money dries up,
company's earnings will drop
therefore fueling the looming recession
and potential layoffs.
In order to best prepare for the dark times ahead,
it's important to create an adjust your monthly budget.
I can almost guarantee that
if you don't currently have a budget,
you will be shocked at the amount of money
slipping through your fingers every month.
Using an app to track spending
or simply writing down your weekly expenses
on a bit of paper and sticking to a budget
will put you ahead of roughly 65% of Americans
that have absolutely no idea
where their money is going each month.
And after all, every cent saved
is another cent invested
earning you passive income.
By the way, if you wanna start investing
and get a free stock worth all the way up
to a thousand dollars, then I'll leave a link
to public.com down below,
so you can pick that up.
Number two, high income skills.
During recessions
and the more aggressive depression
that could be on the horizon,
the weak and the unskilled are the first ones to struggle.
If you possess a skill that is in high demand,
no matter the market conditions,
you will significantly earn above the average.
I run a few different businesses
in completely different niches.
One is a distribution company
that sells to other businesses.
Another is retail stores that sell
to everyday customers,
and the final one is a production company
that produces various different shows.
Even though these businesses couldn't be more different,
the type of person that I'm on the lookout for
is actually very similar.
That there are a limited amount
of high income skills that are always desirable,
no matter what the economy is doing.
A great way to discover high income skills
is to work back from your personality type.
Let's use my personal team for example.
Kai has a natural inclination
for communication and enjoys closing deals.
Sam is great at acquiring technical skills,
which makes him very competent
when it comes to graphic design and editing.
Curtis on the other hand,
is extremely skilled at crafting a story,
which makes him very valuable
in the world of content marketing.
Now more than ever,
content is important as it's the key
to unlocking people's attention.
And once you've got that,
not only will the social media platforms reward you
with a cut of the revenue,
but you also have a group of raving fans
ready to buy your products.
I could slot people that possess these skills
into any of my businesses
and they could thrive
becoming the last ones I would let go if a depression hit.
Obviously, these are specific examples.
However, just think about your natural skills
and evaluate how you can transition them
into solving a problem
better than the majority of the market.
Just bear in mind that it helps
with the skill you are pursuing
is in a growing industry
and also as a high earning potential,
such as selling on commission.
Number one, steal like an artist.
you will never get ultra rich
by just following what people have done before you.
That race has already been run,
and most of the rewards collected.
However, if you steal like an artist, then you can be.
This is when you take the best parts
from a variety of different inspirations
and remix them in your own original way.
You can even tailor your social media algorithms
to show you inspirational content.
Rather than wasting time on TikTok,
you could be researching what others are doing.
With this in mind,
I'm going to reveal my investing plan
for the coming years.
So if you wish, you can use it as one of your inspirations.
I'm looking to have an allocation
of 5% in high risk place such as crypto,
25% in medium risk assets such as individual stocks
and time pieces,
and 70% in lower risk assets
like index funds, bonds, and real estate.
Previously, I'd allocated more
of my portfolio to higher risk assets,
but with the current state of the markets
and overall economy,
I've decided to shift more focus
to low risk long term investments,
as after all I'm trying to build generational wealth.
Now, your spread will look very different
from this depending on your age and goals.
This is because the younger you are,
the more risk you are able to take.
However, you may have noticed
that I missed a very key area out,
my businesses.
This is because I don't think
of them as part of my personal portfolio.
During these times, I believe it's more important
than ever to invest back into my companies
and also learning new skills.
Even now, I'm working on developing my interview techniques
for my podcasts, Strike It Big.
You can start doing all this
with as little as a hundred dollars,
and I did exactly that in this video,
so I recommend watching it next
but don't click on it just yet.
Make sure to subscribe
if you wanna grow your wealth.
Okay, I'll see you over there.