This is what the wannabe rich buy.
Whereas this is what the really rich buy.
This is the story of how I picked the best 5.5 purchases
during the last crashes
and how you can do the same to grow your wealth.
This could be the best purchase I've ever made
but there's a problem.
You're being set up to fail.
So consumer debt recently hit a new record high
of $15.8 trillion.
That's shocking but what's even more worrying
is nobody ever warned us about this.
Talking about money is extremely frowned upon
but with the cost of living rising
and energy prices soaring,
it's more important than ever.
However, maybe they want us
to keep buying things we don't need
with money we don't have.
Many people still call our current system capitalism
but in reality, what has been happening
is just creditism.
This stems back to 1971
when President Nixon decided
to take the USA off the gold standard.
Before this point, you could actually walk into any bank
and demand gold for your dollars,
at a value of $35 per ounce to be exact.
However, now banks don't have to hold these gold reserves,
which allows them much more freedom
to issue loans and create money from thin air.
This has led to credit becoming the key driver
of economic growth,
meaning if credit slows down,
the system would go into crisis
and that's what we're seeing starting to happen now.
Now that you're aware of this debt trap,
this is how you can escape it.
(dramatic music)
So there are two different ways
of thinking when it comes to buying things.
The first is the wannabe rich.
You've probably seen these people
flexing their designer clothes
and their flashy cars on Instagram.
Now, there's nothing wrong with buying a few nice things.
However, it becomes an issue
when your purchases are fueled by the need
to impress others.
This need to look rich
makes people spend money they don't have,
resulting in them being buried in a mountain of debt
and they'll never escape from.
At this point, they don't own their stuff.
The expensive debt repayments mean
their stuff owns them.
The second is the really rich.
We mainly focus on buying things
that make us money
and we use credit wisely to build our wealth.
This results in the things we own actually giving us freedom
rather than chaining us to jobs we hate.
This way of thinking becomes even more important
during a crash as every penny
is even more valuable.
So the big question is what do the really rich buy?
Number one is reliable stocks.
I'll tell you why I'm outside the Apple store
in just a moment.
Investing in stocks has never been easier
and with the right portfolio,
you can really take advantage of a stock market crash
and build your wealth.
In the early days of running my businesses,
I was required to attend monthly meetings with my landlord.
In one particular meeting, I realized that the secretary
had a new computer,
which in itself wouldn't have been that unusual.
However, this computer
was an all-in-one unit in shocking blue
and it really stood out.
So I had to ask her about it.
It turns out that that computer was an Apple iMac.
This is the first time I'd ever seen an Apple product.
Looking back, I should have invested in Apple stock
in the early 2000s when I first saw that computer
but I was busy running my business
and cash flow was tight.
Fast forward around seven years
and I watched Steve Jobs
charismatically announce the iPhone.
At that point, I knew I had to own one.
I also knew if I felt this way,
then many others would as well,
so I bought an iPhone straightaway
and also the company stock.
I wasn't gonna let this slip
through my fingers a second time.
After this, we were hit with the 2008 recession
but as Apple continually innovated
by releasing first the MacBook Air
and then the iPad,
they managed to stay pretty recession proof
as demand for their products only increased.
There are three different types of reliable stocks.
First, the dividend payers,
such as Starbucks and Pepsi.
These pay you a percentage of passive income every quarter,
regardless of the stock price.
Secondly, we have core sector stocks,
such as healthcare, utilities and consumer goods.
These should be relatively recession-proof
and always in demand.
Thirdly, we have my favorite of all time, index funds,
which are basically baskets full of stocks,
allowing you to own a piece of all of them
with one simple investment.
Historically, this has been a very safe way to invest.
I've made a few videos covering this in more detail.
Feel free to check them out afterwards.
A good place to buy stocks
is on the Public cap.
They allow you to buy fractional shares
and therefore, you can invest
however much you feel comfortable with.
They've also given you a free stock slice
worth between 3 and $1,000
when you sign up and fund your account
with the link in the description.
Number two is buying real estate
because it's one of the fastest ways
to grow your net worth.
During the dotcom boom, I was investing heavily
and struck it pretty big with a few stocks.
During times like these,
it feels like you just can't go wrong.
However, I was noticing some of the early signs
of a bubble forming,
such as everyone believing the hype
that the internet would change everything.
This, of course, eventually happened
but not before effectively destroying hundreds
of dotcom companies that had poor business models.
I remember Amazon having a huge drop in value.
It's a bit like what we're seeing
with Web3 and Metaverse stocks at the moment.
Luckily, I noticed this just before the bubble burst.
I took my profits and then diversified
into commercial real estate.
We're currently standing outside
my first-ever industrial unit.
This is where I started my second business.
This cost me $100,000.
However, I took out 85,000 in profit
from my initial $15,000 investment
into dotcom stocks.
So I managed to diversify into real estate
for effectively only $15,000.
Later, I moved my businesses to my bigger warehouses
and now this is a fancy dress shop.
The beauty of real estate
is that you can leverage your money with mortgages,
meaning you can take control of property
worth hundreds of thousand of dollars
with a much smaller deposit
and then pay back the interest on the loan
with the money you're receiving in rental income
and of course, make some profit on the side.
I love these smaller commercial buildings
because you can split them up
and rent them to smaller businesses,
just like an HMO.
I also love that you can get into real estate
with little to no money
with something called deal sourcing
as there are always investors looking
for a good deal.
So if you can find one,
investors will take it off your hands
and pay you a premium.
Do this enough times and you'll have enough deposit faster
than you can say HMO.
Number three is buying precious metals.
I'm talking pure gold and silver,
not this type.
The reason this isn't a great investment
is because you've got the added labor
and the reselling cost,
meaning the price isn't based on the actual value
of the precious metal.
Robert Kiyosaki, author of the popular book
"Rich Dad Poor Dad,"
is a huge supporter of buying gold and silver.
He calls it God's money.
Robert is uneasy about the current situation
in financial markets.
I mean, it wasn't long ago
that the US stock exchanges
were at their all-time highs
and it was reported that half of the new millionaires
only became so because of the constant growth
of the markets.
However, he's believed for some time now
that the growth of stocks has been mostly funded by debt.
Kiyosaki calls these fortunes fake.
Therefore, he thinks they will be destroyed
by the next financial crisis,
just as easily as they were created.
Not that I believe all of this.
However, precious metal is certainly a good store of value.
There's a few different ways to buy precious metals.
The first is to actually buy the physical commodity,
such as gold bullion
and the second is to simply purchase
a gold ETF on your favorite stock app.
Personally, I would always buy physical gold
because it's real and you can store it in a vault,
ready to turn back into cash at the drop of a hat.
The issue of gold ETFs
is they might not have enough gold
to service a mass withdrawal
and I'd always feel more comfortable
with the asset in my control.
Number four is buying blue chip crypto.
It's no secret that Bitcoin
has been the best performing asset
for the last decade
and I'm sure I also don't need to remind you about the state
of the market at moment.
It's a blood bath, which could be the perfect time
to snap up some amazing deals.
I remember the first time I heard about Bitcoin.
It was on a TV interview
and I honestly thought it was some kind of scam.
Even the guy that was being interviewed didn't seem
to be able to articulate what Bitcoin was really about.
This really annoys me as this first negative impression
had a real impact on my attitude towards crypto for years.
Fast forward to 2020 and crypto reared its head once again
after coming out of quite a stagnant period
known as the crypto winter.
I was still very skeptical,
however, my son Curtis didn't have the same beliefs as me,
and was investing himself and seeing returns
that dwarfed my stock portfolio percentages.
After sitting and chatting with him about the space,
I dipped my toe in the water
and I haven't stopped since.
This doesn't mean I'm buying lots of different altcoins,
especially in market crashes
as many of them just won't recover.
However, the blue chip ones, I'm talking Bitcoin,
and Ethereum are definitely more long-term plays.
When you're buying crypto,
something to look out for
is the sneaky fees the app you're using
to buy it have put in place.
This is how lots of platforms make the majority
of their income and most people
don't even know there's a better alternative.
FTX sponsor my channel regularly
and I'm so glad they do.
This is a platform I really trust
and the fees are 85% lower
than the nearest competitors.
If you use the code MARKTILBURY when you sign up,
you'll also receive free crypto on every trade over $10.
Number five is buying things for a side hustle.
There's lots of different options here,
such as the online route
or something more physical in person,
depending on your skillset.
This is the absolute best way
to get ahead of everybody else during a crash,
as cash is king
and the more money you're generating,
the more money you can invest.
Recently, I chatted to 21-year-old Jack
on my podcast and he revealed
how he is generating over $100,000 per month
from Amazon FBA.
So how scalable do you think your business is?
- I wanna be doing a million a month by next year on Amazon.
Do I think that's possible? Yes.
Do I think it's achievable? Yes.
Do I think I'm gonna achieve it? No.
Do I think me and my team are gonna work together
to do so?
Yes.
It's not gonna be easy though.
It's gonna be really, really tough.
- This was all scaled from just a laptop
and an internet connection.
The best part of all
is it was just started as a side hustle.
Your side hustle doesn't have to make $100,000 a month,
although that would be nice.
However, even an extra $100 generated
is a chunk of cash you wouldn't have had before.
So just be on the lookout
for anything you can buy
that you can use to make a solid return on investment.
This could be the best purchase I've ever made.
It's my golf club membership.
Around 2012, I was still dealing with the aftermath
of the 2008 recession
and my stress levels were sky high.
So I decided to take up golf
as a way to relax and de-stress.
Even if you don't have time to play a sport
or enough money to pay for a gym membership,
even going for a walk can help you de-stress
to help you make better decisions.
So the secret to actually becoming rich
in a crash is to firstly,
escape the debt traps society has set for you
by changing the way you think about money.
Secondly, consider the return on investment
of every item you buy,
and maximize this wherever possible.
And thirdly, avoid high levels of stress
as this causes you to act irrationally
during a crash.
So I'm gonna leave the next video right up there
but don't click on it just yet.
Make sure to subscribe
if you wanna grow your wealth, okay?
I'll see ya over there.