our economy will never be the same and
most people are playing the game of
money in today's economy with old rules
and then wondering why they're seeing no
progress and no wealth I'll show you
let's go back in time a little bit if we
go back to the 1970s back then we had
one income households generally the way
it worked was the man went to work and
the woman in the house did not work
that's just how it was and back then
with that one income household one
income was able to fund buying a home
one income was able to fund buying a car
maybe even two cars one income was able
to fund an annual vacation and one
income was able to fund college and
people were still able to save money and
book money aside for their retirement
and Investments today
we have two income households and people
are struggling to buy homes people are
struggling to buy cars people are
struggling to go on a vacation people
are struggling to pay for college and
people are struggling to put money aside
for their savings and people are
struggling to put money aside for their
Investments let me show you some
statistics in 1972 the median household
income was eleven thousand one hundred
and twenty dollars this is from the
United States Department of Commerce now
if we fast forward about five decades
later in 2021 the median household
income in the United States was 71 000
this is from the United States census
that is a
640 percent increase in household income
from 1972 to almost five decades later
but don't forget back in the early 1970s
your household income was primarily just
one person's income today our household
income numbers are based off of two
people's incomes in 1972 the median home
price sold was 30 000 500 in 2021 it was
346
000 that is an eleven hundred percent
increase in home prices the average new
car cost thirty seven hundred dollars in
1972. in 2021 the average new car cost
was forty seven thousand dollars that's
a fifteen hundred percent increase
four-year Public University tuition went
from five hundred dollars in 1972 to
nine thousand five hundred dollars in
twenty twenty one that's a nineteen
hundred percent increase now look at
these numbers very carefully household
income grew by 640 percent partially
because now there are two income earners
in one home at the same time home prices
grew by eleven hundred percent car
prices grew by fifteen hundred percent
and tuition prices grew by Nineteen
Hundred percent this is the new economy
and people wonder now why they're
struggling to get ahead the reason why
so many people are struggling to get
ahead in today's economy is because the
cost of living has grown significant can
be faster than wages now this is where
you have to make a decision because the
decision here is very tough and very
crucial at the same time because most
people look at this and they say this is
why we need to complain cry scream be
upset
and that's what most people do when they
see these numbers now yeah it is very
frustrating when you see this don't get
me wrong it is frustrating to see this
but you can still win despite this if
you have the right Financial education
now the reason why this is all happening
goes back to the same concept that I've
been talking about time and time again
it goes back to inflation what happened
in the early 1970s in the early 1970s
the United States dollar was taken off
of the gold standard this happened in
1971 when President Richard Nixon
severed the Dollar's tie with physical
gold prior to 1971 if the government
wanted to spend the money it didn't have
it needed more wealth it needed more
gold
but then in 1971 President Nixon took
the dollar off of the gold standard
meaning the government and the Federal
Reserve Bank could print and spend
whatever amount of money they wanted to
so now the FED can print more money
insert it into our economy and this then
devalued our spending ability our
consumers got hurt our ability to spend
gets hurt our savings have less buying
power our wages our income cannot buy as
much and in turn the price of things go
up that's what inflation does because
after 1971 we started to see when we're
spending we started to see more
inflation and that impacts people who
are not financially educated so now if
you're a regular person and you're just
trying to get by you're trying to do all
the right things you go to school you
get a good degree you get a good job but
now you're working to earn more money
and you're wondering why you don't have
the same ability to build wealth like
your parents to your grandparents well
you can thank the Federal Reserve Bank
and all the money printing that they did
but now this is where again you can
complain cry scream blame the system
blame the government blame the FED blame
your boss blame the bank blame everybody
but that's not going to improve your
financial situation into what I'm saying
is now despite all this happening how
can you win in this financial situation
because the reality is the economy is
not going back to where it was and this
is where a lot of people are trying to
figure out what's going to happen now
going forward because now if in 1970 a
one income household was enough to
provide for a whole family now in 2023
two income households are what you need
in order to provide for a family and
barely get by what does that mean we're
going to see in 2030 2040 2050 2070. now
if you think that 20 years from now it's
going to be like what it was in 1970
where one income is going to be enough
and now with two incomes you're going to
be able to build even more wealth you're
living in la la land and this is where I
want to bring you back to reality a
little bit because if inflation is what
created this big divide between the
Haves and the have-nots if inflation is
what created the cost of living to rise
so significantly
well you got to understand is inflation
going away meaning are we going to see
negative inflation over the next number
of decades to bring the prices of things
down that way now you have more ability
to build wealth no that is not happening
and so if we're not going to be seeing
negative inflation you got to understand
what's going on right now that way you
can understand this number one then two
be able to capitalize on this because
the realities this also creates
opportunities for those who are
financially educated and that's what I'm
going to be talking about in this video
inflation is a hidden tax and it
disproportionately hurts the financially
uneducated the poor and the middle class
and a disproportionately benefits the
investors and the financially educated
and the wealthy now your question might
be why and the easiest way to understand
this is just to see what has happened in
the past if you go back to when the
pandemic hit and the government sent out
these stimulus checks what was the
purpose of these stimulus checks they
were meant to stimulate but stimulate
what they weren't meant to stimulate
your finances and your wealth they were
meant to stimulate the economy that's
the meaning of a stimulus check and so
now when people get stimulus checks what
did they do with it some people saved
that money some people paid off their
debt some people invested their money
but most people spent that money now of
course some people needed the money to
buy groceries some people use that money
to go out and shop at Lululemon some
people use that money to go and shop at
Gucci or Louis Vuitton
but now understand what happens because
now if the government gives a thousand
dollars to everybody the government
doesn't have that money sitting
somewhere right the government is
drowning in debt the government has a
very large national deficit meaning
they're spending more money than they're
bringing in so how does the government
just pay out these checks this money has
to come from somewhere it gets printed
the Federal Reserve Bank has to print
this money and to give it to the
government and the most expensive kind
of money is free money so now the
government gets all this money they give
it out to people and now what do people
do they take this money and they go and
spend it you go out and spend it at
Walmart you go and spend it at Lululemon
go and spend it at Gucci you go and
spend it at Amazon this money gets spent
but now what happens next the next thing
that happens is these corporations have
a bigger share of the money why because
when you go and spend this money at
Walmart you spend a thousand dollars at
Walmart
Walmart has more dollars because more
dollars are created more people have the
ability to spend more people go to
Walmart more dollars go to Walmart
which means now if there's more dollars
in our economic system the two thousand
dollars to have in your savings account
is a smaller piece of the total monetary
Supply you own a smaller share of the
total amount of dollars out there so now
if Walmart is getting more dollars
because not people have this money
they're going to go and spend it
naturally Walmart owns a bigger share of
the monetary supply of the money of the
wealth now who owns Walmart well it's
the shareholders the investors this can
be people like you anybody can go and
invest in companies like Walmart if you
go to the stock market and you buy
shares of a company but it's also the
wealthy the hedge funds the banks it's
people who understand money so when I
say inflation disproportionately
benefits the financially educated and
the wealthy I don't just mean it
benefits rich people it benefits people
who understand how money works because
now if Walmart is getting more money and
if Walmart is charging more prices for
their eggs and their groceries
well now if you own a piece of that
company you are benefiting from it
because now when Walmart gets more
dollars you own a piece of that profit
that is the investor side that's where
inflation benefits people but inflation
also hurts consumers who is the consumer
everybody rich people poor people middle
class everybody is a consumer inflation
hurts the ability to consume because
your dollars your buying power your
currency goes down in value that's what
inflation does inflation hurts the
buying power of your money
but the reason why I say inflation or
disproportionately hurts the financially
uneducated the middle class and the poor
is because most people are only
consumers most people don't have
Investments most people don't understand
Investments most people are not
financially educated because well none
of us are taught this in school the
people that are taught this are those
people who have Rich parents and then
they pass it down to their kids if you
don't have Rich parents to tell you this
where are you going to learn you can
read books or thankfully now thanks to
YouTube you can watch videos and you
have more access to places to learn but
if you don't go out everywhere to learn
like most people you're going to be
running in this game without even
understanding the rules and so now
understanding where we are in this
economy today you got to project where
are we going in the future because let
me tell you something inflation is not
going away the Federal Reserve Bank says
that they want to bring inflation down
to two percent that doesn't mean that
inflation is going to go negative it
doesn't mean that the prices of things
are going to go back down to where they
were in 2019 that does doesn't mean that
we're going to go back to where we were
in the 1970s
that means they want to cool down
inflation meaning they want the prices
of things to rise just not as fast as
they were before
the Federal Reserve Bank has wanted
inflation forever I mean inflation has
been around for a long time but the
reason they like that two percent Target
is because that two percent number is
just enough that the average person
doesn't notice it and how do I know this
because back in 2017-2018 I used to go
out walk around the streets I went to
Chicago I went to Washington DC I went
to New York I went to San Francisco I
went to LA and I talked to people around
the country about money this is before
the pandemic back when inflation was
between two to three percent and I asked
regular people on the street what is
inflation and most people the vast
majority of people had no clue of what
inflation was that is what the goal is
of the Federal Reserve Bank because that
people are now worried about inflation
no one's going to question it and that's
what's been happening for a decade after
decade after decade that we start to see
the slow inflation which causes the
value of your dollar the value of your
earnings to drop the value of your
savings to drop while the prices of
things go up and most people never see
it happen
and when you don't see it happen
that's what allows it to continue and
that's why most people just don't
understand why they're not able to build
wealth like they could before and so now
what do you do if this is the situation
that we're in right now what do you
actually do to win despite this because
there are three things that you need to
do and this is not going to be rocket
science but there are three strategic
things that you need to do number one is
you're going to have strategically spend
less money number two you're gonna have
to strategically earn more money and
number three you're gonna have to
strategically invest this money I know
it's not rocket science but this is
something that becomes significantly
more crucial especially in times when
you have this type of high inflation
especially when you have this type of
economic slowdown that we're seeing
especially when you're seeing these
types of higher interest rates because
if you don't understand these three
things and they might seem
self-explanatory but if you don't do
these three things then you don't have
the ability to capitalize on the
opportunities that might come your way
because let me tell you what's going on
right now what we're seeing happen today
we've been seeing the high inflation and
now we're hitting a point where many
Americans are saying okay you know what
I am definitely seeing the higher cost
of things and it's becoming more and
more difficult for me to continue
funding My Lifestyle to pay for my
higher rent to pay from a higher
expensive groceries to keep going on
these vacations to keep eating out at
these expensive restaurants to keep
living my life so now I have a choice
either I can cut back on my spending or
I can just dig into my savings and go
into credit card debt and what we're
seeing statistically this isn't me just
spitting out words
statistically more and more Americans
are saying I don't want to cut back on
my lifestyle I'm used to eating out at
these nice restaurants I'm used to going
out on these nice vacations and so
instead of me cutting back on my
lifestyle and living a life that I can
afford I am going to now put it on my
credit card that's why we're seeing
credit card debt levels rise very
quickly and breaking new record highs
and then you're also seeing more and
more Americans digging into their
savings pulling cash out of their life
savings that way they can fund not a big
purchase but the regular expenses we are
seeing this happen today because now
we're in a time where people having to
make the decision and the first thing
that people decide is I don't want to
cut back let me continue funding My
Lifestyle by using my savings or by
using debt to continue funding my
lifestyle and that is a very dangerous
decision right now if you want to build
wealth because if you want to be able to
have money to capitalize in
Opportunities the most accessible thing
that you can do not the easiest not the
funnest but the most accessible thing
that you can do is spend less money
which means you might have to downsize
on your car which means you might have
to downsize on your apartment which
means you might have to downsize on your
home which means you might not be able
to eat out as much which means you might
not have to go out on as many vacations
and that sucks to make sacrifices but
that's where we also have number two
which is work to earn more money
strategically now these are things
that we've been covering very in depth
on Market briefs if you have not joined
Market briefs yet this is why I keep
recommending it not just because well I
think everybody should read it but
because it keeps you up to date with
what's going on with things like
inflation and the economy the housing
market the stock market that way you
don't get blindsided by what's going on
Market briefs is a completely free
newsletter where my team is breaking
down what's happening in the financial
news you can read it in less than five
minutes every morning and it's free so
if you haven't joined Market briefs you
can go to briefs.co market that's
briefs.co market and I also got the link
for you down in the description below
the second thing that you have to do
strategically is you have to work to
earn more money and the reason why this
is so important is going back to just
the trajectory of how our economy has
been the household income from 1970 to
now has gone up not just because people
have wages have gone up but because now
there's more incomes in one household
now if we fast forward to what it's
going to be like 30 or 50 years from now
it is going to go down the same
trajectory as long as we continue to see
inflation which means people will need
more income in order to be able to
survive how are you going to be able to
do that you are going to have to work to
earn more money maybe that means you got
to get a second job maybe that means you
got to work to increase how much money
you can make at your current job maybe
that means you got to get a certificate
or maybe that means you were to start a
side hustle or start your own business
the good thing the beauty about today is
that there are more opportunities than
ever to earn more money so if you feel
like you are not making enough money to
fund your lifestyle and invest and save
some money you are going to have to earn
more money and this is so important
because
a lot of people are very hesitant to
look at reality objectively let me tell
you what I mean
if you look at something like the
housing market right now home prices
have gone up significantly and at the
same time mortgage rates have also gone
up significantly that's a double whammy
for anybody who wants to buy a home
because now over the last few years not
only have home prices skyrocketed so you
have to borrow more dollars to buy a
home but the interest rate you have to
pay to pay for that mortgage has also
more than doubled in just the last
couple of years and so now if you want
to buy a home today versus say two years
ago it's gonna cost you way more money
now why are interest rates Rising so
fast well this is because partially the
Federal Reserve Bank are Central Bank
here in the United States is Raising
interest rates aggressively to bring
inflation down again they don't want to
see deflation they don't want to see
negative inflation they want a cool
inflation down meaning they want the
prices of things to rise and a more
moderate Pace that doesn't really affect
people in a way that's very visible
but
that means that there's going to be pain
with the higher interest rates one of
that pain is you got to pay more money
to borrow money so now if you want to go
out and buy a home now you're looking at
much higher mortgage rates well if you
are a banker if you are a mortgage
lender that's kind of not so good news
seeing these higher interest rates
because well supply and demand people
want to buy things more when it's
cheaper right when mortgage rates are
cheaper naturally you have more demand
for a mortgage more people are going to
want to buy a home when you can get that
mortgage for three percent then when you
have to pay eight percent for that say
mortgage
and so this is where Mortgage Bankers
are starting to feel a little bit of a
pinch because you just have less demand
for refinancing you have less demand for
mortgages today because mortgage rates
have gone up so much
and so naturally that's going to create
some concern well what's going to happen
to the mortgage Market our interest rate
is going to keep going up what's going
to happen to my mortgage business what's
going to happen to my mortgage income as
a banker naturally you're going to be
worried about these things well
that's where you then have associations
like the mortgage Banker Association
which is a big organization that helps
tell Mortgage Bankers what's going on
and what to prepare for and what the
Mortgage Bankers Association has said
essentially is that don't worry about
what's going on in the mortgage Market
because mortgage rates are going to fall
The Mortgage Bankers Association put out
a statement where they said that
mortgage rates are going to fall to 5.2
percent by the end of 2023 and the
reasoning why mortgage rates are going
to fall to 5.2 percent for a 30-year
fixed rate mortgage by the end of 2023
is because well mortgage rates are too
high and it's pulling people away from
wanting to buy a home now this kind of a
interesting logic because well the
reason why the FED is having to raise
interest rates is because inflation is
so high now when we measure inflation
what are we looking at we're looking at
the prices of things and what is one of
the factors that contributed to the high
inflation well home prices rising so
fast why did home prices rise so fast
well people wanted to take advantage of
the low interest rates so the low
mortgage rates caused people to buy
homes which caused bidding wars for
homes which caused the prices of homes
to rise so significantly
so if that low interest rates caused the
high inflation
why would the FED want to cut interest
rates and cut mortgage rates to make
buying a home more affordable when
they're trying to bring inflation down
because if the FED were to cut mortgage
rates tomorrow if they fell down to five
percent what's going to happen you bet
that there's going to be a flood of new
buyers into the market if new buyers are
flooding into the market well then
you're going to see more bidding wars if
there's more bidding wars home prices
are going to go back up if home prices
start shooting back up that means higher
inflation that means the FED would be
shooting themselves on the foot so you
have the Mortgage Bankers Association
reassuring their Bankers saying don't
worry about the mortgage Market don't
worry about the slowing demand and
mortgages because mortgage rates are
going to fall by the end of 2023. the
justification is that mortgage rates are
just too high right now and it's pulling
people away from the mortgage market and
so if now the FED doesn't have the
ability or doesn't want to bring
interest rates down what is the other
potential way that mortgage rates could
come back down
well this now goes to understanding what
is the federal funds rate versus the
mortgage rate
see the Federal Reserve Bank doesn't set
the mortgage rate the Federal Reserve
Bank while they're the Central Bank of
the United States they set What's called
the federal funds the rate the federal
funds rate is the interest rate that
Banks pay to borrow and lend money to
one another so you could think of it
like the wholesale interest rate that
banks have to pay and then banks will
jack up the interest rate and then sell
it to you at the retail rate everybody
every store every business does the same
thing Walmart will buy watermelons at
the wholesale rate to jack up the price
and then to sell the to you at the
retail rate right that's their margin
Banks do the same thing the Federal
Reserve Bank sets the federal funds rate
that's the wholesale rate the jack it up
and give it to you at the retail rate
well if we look historically at the
federal funds rate versus the mortgage
rate chart and you can look here this is
the historical chart from the Federal
Reserve Bank website and we're looking
back as far as the data will tell us
there's only been a few times in our
entire recorded history where the
mortgage rate has fallen below the
federal funds rate and these were
extreme circumstances when we had
significant recessions and different
subsidies by the government where the
mortgage rate fell below the federal
funds rate now if we go to where we are
today
mortgage rates are you know between
seven and eight percent in that range
but the federal funds rate is now past
five percent which means if the Mortgage
Bankers Association is claiming that
mortgage rates are going to come back
down to 5.2 percent that would mean that
mortgage rates would have to fall below
the federal funds rate now how would
mortgage rates fall back below the
federal funds rate that would mean
either Aid the FED has to start cutting
interest rates but like we just said
that could be shooting themselves in the
foot by making inflation even worse not
saying that they're not going to do it
but that's the risk that the Federal
Reserve Bank would take by cutting
interest rates or B we got to go back to
one of these rare and extreme
circumstances where now mortgage rates
fall below the federal funds rate and
banks are essentially lending money for
less than what they're paying to borrow
from so this is where now understanding
that sometimes people want to live in
you know their own la la land where
they're hoping for something because
that feels good good when the objective
reality shows the chances of that are
much less now why do they do this
because naturally you want to keep
sentiment high for your Bankers you want
to keep the sentiment high for your
lenders because you that's what keeps
people driven and motivated but this is
where now I want you to be objective and
understand what's going on now I'm not
saying this from the perspective of a
banker I'm saying this now for a
perspective of you needing to earn more
money why do you need to make sure
you're working to earn more money
because of everything that I just talked
about the new economy that we're in
right now shows that this divide between
the cost of living and wages has really
forked in the last few years and this
Fork is just going to keep going more
and more extreme maybe it'll slow down
in how much this widening is happening
but the widening between wages and cost
of living is gonna continue going down
this direction which is why you have to
learn how to earn more money because
it's not just about being able to fund
your car and pay for your home and pay
for your groceries and get that vacation
but you also have to be able to invest
your money and save some money because
that is how you will be able to build
wealth and if all your money is going to
pay for your mortgage and to pay for
your rent and your groceries you are
never going to have a chance to ever be
able to become wealthy and that's the
situation that the majority of Americans
are in right now is most people are
working just to drive a faster car and
have a bigger home
you need to one spend less that way no
matter how much money you're making
you're still putting some money aside to
build your own wealth through your
investments in your savings but then as
you do that you want to make sure that
you can accelerate your path to wealth
and that you can live the life that you
want financially and that means you're
gonna have to work to earn more money
now again how can you do that you can do
it from your own job you can do it from
getting a second job you can do it from
creating your own income you can do it
from starting your own business you can
do it from becoming a freelancer or a
contractor there's an infinite number of
ways to do this because it's become more
accessible than ever yes it is hard work
yes it means more work but the reality
is look at where the economy is look at
we're going to be going over the next
number of decades and put yourself in a
position right now that way you can take
care of yourself your family and your
community because if you don't start
preparing now you're going to be in for
a rude awakening as things continue to
progress slowly slowly slowly and then
one day you realize oh man
life is clearly getting to me
financially and I want to make sure that
I can take care of myself so start
preparing proactively by understanding
what's happening and then the third
thing that you got to do is you got to
make sure you're investing like crazy
look the way that you build wealth is
not by saving a lot of money the way
that you build wealth is not by earning
a big salary the way that you build
wealth is by investing your money and I
know most of the time people think that
the way you build wealth is by Saving or
earning a big salary that's what I
thought I didn't grow up learning about
money no one taught me Financial
education I didn't know what investing
was no one told me what real estate
investing was I don't even know that you
could invest in real estate I didn't
know any Real Estate Investors growing
up
but this is where now
understanding that wealth is built
through investing your money period
wealthy people become wealthy because of
the assets they own not because of the
salary that they have
your salary if that's your only source
of income
is one paycheck away from being broke
because if you're just relying on your
salary that means that if you can't work
anymore you no longer have an income if
God forbid something happened to you and
you can't work or if you something
happened to you and you never have the
ability to work again or if something
happened to your company and the income
stops coming in you still have your
expenses and this is where now you want
to make sure you can take care of your
family
and the way that you can do that isn't
just about working to earn a bigger
salary it's by taking a piece of her
salary and using that money now to buy
assets you're working to earn money to
buy more assets the average person is
working to earn money to buy a bigger
home and a faster car wealthy people
work to earn money to buy more assets
because your assets can continue working
to make you money even when you're not
working even if you were to die your
assets can still continue to produce an
income for your family and whatever
child causes or charity that you want
but you have to build or buy these
assets and as a builder buy because you
can build it by building your own
business
where you can buy these assets by slowly
working to invest your money now you
don't need a ton of money to get started
you can start with as little as a
hundred dollars even one dollar in some
instances but if you slowly start
stacking you will have the ability to
earn more money build more wealth and
have more that Financial Freedom now you
just gotta get started see the mistake
that so many people make when it comes
to investing is they get into this
information overload how should I start
should I invest in stocks index funds
mutual funds options
ETFs should I invest in real estate
should I invest in Syndicate deals when
the reality is the thing that you need
to do is just get started
you can always change you're not setting
yourself in stone and yeah you will
probably lose money at some point you
have to understand that before you go in
but once you get started that's when
you're gonna start learning because now
you got actual skin in the game once you
guys get in the game you're going to be
much more worried about what's going on
with your money and that's what will
force you to learn
so get started even with the hundred
dollars start investing that way you can
learn and it's a lot easier to lose
money when you have less money in there
and because that pain isn't as painful
but it's still painful even when you see
a little bit of money down but that's
how you learn you got to get involved
because that's what's going to help you
actually build wealth I'm not allowed to
give investment advice but if there's
one investment that I would recommend
that I know can give you a better return
than today's housing market than today's
stock market and even a better return
than today's cryptocurrency market is
canceling your Netflix subscription
stick with me for one minute I'll show
you what I mean the Bureau of Labor
Statistics released an American time use
summary and what they found was that the
average American spends 2.9 hours a day
watching TV and the way that people
watch TV today is of course Netflix and
the number one reason why most Americans
feel like they cannot make more money or
they cannot make a big Financial change
in their life is because they don't have
enough free time they say it takes 10
000 hours to become a master at anything
well if you spend 50 hours doing one
thing I can guarantee you you're gonna
become pretty good at that one thing and
if you spend 500 hours learning and
experimenting and trying one thing
you're gonna become really good at that
one thing
well if you work 49 weeks a year and you
work five days a week out of those 49
weeks a year and instead of spending two
and a half hours watching TV you spend
that two and a half to 2.9 hours now
learning building trying new things that
means after one year even including
holidays including weekends you're gonna
spend over 700 hours learning and
building your own education on how you
can work to earn more money I can
guarantee you that if you spend just one
year those 700 hours and that's not
including weekends or holidays if you
spend 700 hours in one year working and
learning to earn more money I guarantee
you that 12 months from now you are
going to have a completely different
mindset and skill set towards earning
money and you are going to know a lot of
ways to earn more money and even if you
don't increase your income 12 months
from now you're gonna have the tools and
the knowledge and the ability to do so
and now you're gonna have more ability
to now earn more money that way you can
build more wealth time is the number one
most powerful tool that all of us have
access to when it comes to building your
wealth and so now if you compare two
people one person comes home from work
every single day they sit on their couch
they watch Netflix for a couple hours to
decompress they hang out with their
family then they go to sleep and then
you compare person number two where they
come home work they spend time with
their family and then they spend a
couple hours working on their business
to spend that time learning about how to
manage their money they spend their time
learning how to earn more money in 10
years who do you think is going to have
more earning capability the person who's
spending their free time watching
Netflix or the person who's spending the
free time learning to earn more money
yeah it takes more work it takes more
hustle it takes more time but you have
the ability to do so and if you now can
cancel that Netflix subscription you are
going to free up that free time the most
valuable asset it that you have access
to that way now you can reallocate that
access not the money I'm not worried
about the 15 a month I'm talking about
this two to three hours a day that the
average person is spending watching
Netflix if you can reallocate that asset
it costs you nothing to do so but it can
completely change the trajectory of your
life your money and your wealth if you
start learning because once it's a
learning you can also start earning but
you can't do that unless you start
learning and you start trying things and
that's not possible unless you have the
ability to do so I have made a lot of
different investments in my career I've
invested in real estate I've invested in
stocks I've invested in startups I've
invested in Gold I've invested in
cryptocurrencies but the one investment
that has given me the best return out of
all the Investments that I made and I
started investing in real estate when
prices were at the Rock Bottom after the
2008 crash and still the number one best
investment that I have made was the
investment in myself now this best thing
investment that I made isn't just the
money that I spent now buying books
buying classes hiring coaches hiring
Consultants but the time that I spent
learning as well I didn't grow up
learning about money I didn't grow up
learning about entrepreneurship I didn't
grow up learning about financial
education all of these things were
forbidden for me I grew up in a very
strict traditional Indian household
where I had to go out and become a
doctor in fact I could either become a
doctor or I could become a failure those
were the only two options that I had and
so when I started learning about money I
went out of my way this is back before
YouTube was available I had to go out
and read books that was the first time I
ever read a book cover to cover I hated
reading the first time I ever read a
book cover to cover was a book called
Rich Dad Poor Dad by Robert Kiyosaki and
when I read that book it opened my mind
to A Whole New World of money that I had
never been exposed to before once I read
that book then I started reading Dave
Ramsey's books and then I started
reading more books and then I started
learning and I started applying what I
was learning and this is where now being
willing to spend that time not just
reading but also doing can change the
trajectory of your life and yeah it can
be very hard when I was going to law
school I didn't want to go to law school
I went there to make my parents happy I
was going to law school but at the same
time I knew I didn't want to be an
attorney I went through law school I
became a licensed attorney and I have
never worked a day as an attorney and
the reason why is because when I was in
law school my time was spent trying to
figure out what the heck I was going to
do
so now I'm in law school I'm working on
my business and that was a lot of time
before classes after classes I was
running a stock company at the time I
also started my YouTube channel around
that time and so then I also started
taking acting classes I started taking a
night evening acting class to start
learning how do I talk in front of a
camera because I had never done anything
like that before and so now I'm spending
my time doing all these different things
and I'm also working to invest in real
estate I also got my real estate
salesperson's license I was doing
everything that I possibly could to
learn because that was how I learned I
learned by doing and I knew that this
was my opportunity to learn and do
something because I wanted to achieve
something different and so now if you
want to be able to earn more money or
invest better or get better returns or
build more wealth you have to invest
more in yourself they say that you know
whether there's a will there's a way we
all heard that Stephen before but that's
such a vague statement what the heck
does that even mean when I I used to go
and guest teach in Detroit public
schools is a very rough School District
smart kids many times in tough
situations and I would go and guest
teach once a week or once a month in
these schools
and I would talk to the kids about money
and life and Leadership
and I would ask questions like how many
of you have a job these are high school
kids and pretty much everybody would
raise their hands saying that they have
a job then I would ask how many of you
have a bank account
nobody raised their hand
not a single person had a bank account
so I would ask what do you do with the
money that you earn you get this
physical paycheck you go to the local
liquor store you cash the paycheck the
liquor store owner takes one to ten
percent of the check you buy a bunch of
popping candy on the way out and now you
have a small fraction of your entire
paycheck on the way out but at the same
time what are you prioritizing because
when these kids wanted the newest pair
of Jordans they would do whatever it
took to get those Jordans whether it was
working extra hours whether it was
sacrificing spending money on things at
school whether it was not eating lunch
people would make huge sacrifices to get
the newest pair of Jordans because
that's what they wanted so now my
mindset is how do we now reallocate this
mindset instead of getting the Jordans
to Building Wealth and this is where it
goes back to the same thing when you
want something you will find a way to
get it whether it's a pair of shoes
whether it is a Gucci bag whether it's a
car whether it's a big home whether it's
whatever if your goal now is to build
wealth if your goal is to invest in a
rental property if your goal is to build
a big stock market portfolio you got to
get hyper focused on that
that means now you got to spend your
time learning how to do that because
when that's something that you want
really bad you're gonna figure out
whatever it takes to do that and it
becomes much easier to make those
sacrifices because nobody likes not
being able to go out to eat nobody likes
not being able to go on a vacation I
mean these sacrifices suck how are you
going to explain to your wife or your
husband hey we can't go out to eat
anymore because I want to get rich or I
want to become wealthy win what does
that even mean nobody wants to just pick
sacrifices for the sake of making
sacrifices you got to get on the same
page where hey
let's make this financial sacrifice
that's not going on vacation this year
that way we can work to build our wealth
that way in a few years we can go on two
vacations a year instead of just one
because now you're working for something
bigger and that's what you have to align
yourself on and your goals on is how are
you going to get bigger and then you got
to get laser focused on that idea of
getting bigger and now the resource that
is the most powerful is your time of
course you have to use your money
smartly but your time if you can use
your time the right way that's what's
going to show you what you can do with
your money that way you can grow your
money and that's what's going to show
you how you can earn more money that
where you can have more money to invest
but this means you are going to have to
allocate your time and I know it's not
easy if you got kids it's not easy if
you've got a spouse it's not easy we all
got things going on in life everybody's
having babies everyone's got a baby
shower everyone's having these
graduation parties there's always
something going on
but you got to get focused on you I call
it a decade of sacrifice now of course
it's easier to do this when you're in
your 20s but it's easier to do it in
your 30s than it is your 40s it's also
easier in your 40s and their 50s and
it's also easier in the 50s and your 60s
but this is where the sooner you start
the better it is because the decade of
sacrifice where now this decade you are
working to spend less and earn more that
way you can do one thing invest your
money that way can build wealth that's
what's going to allow you to set
yourself apart from everybody else that
you know this isn't a six steps to
Building Wealth system
because those six steps to six figures
systems are making one person rich and
it's not you if you really want to build
wealth you're gonna have to make
sacrifices there's no other way around
it and that means
put it in the work putting in the time
to spend less and earn more that we have
more money to invest and if you put in
that effort if you cancel the Netflix if
you cancel some of that time that way
you have more time available to allocate
to you Building Wealth you will surprise
yourself how much you can learn in just
six months when you first start learning
anything it is so overwhelming I go
through the same thing even in business
when I go and start learning and you
think if I started learning about
building a good SEO website it's going
to be very overwhelming because now you
start hearing about all these terms and
all these ideas and all these strategies
and all these different opinions that is
just information overload but if you
stick with it and you start breaking it
down and you start digesting and you
start watching more videos and you start
reading more blogs eventually once you
put in 50 hours you're gonna start
learning the basics when you put in 500
hours you're gonna know it really well
you're gonna know better than most
people out there
and it takes the time and the dedication
to be able to do that now you can change
it from building an SEO website to
learning how to build a business to
learning how to earn more money to
learning how to invest your money better
to learning how to invest in real estate
without a ton of money to learning how
to invest in stocks it doesn't matter
what it is but you have to start
reallocating your time if you've been
subscribed to my channel you've probably
heard the saying pay yourself first that
you got to pay yourself first before you
go out and make everybody else Rich
because well now when you invest your
money before you go out and spend your
money now you can make yourself rich
first
well it's the same thing with your time
spend your time on you first before you
spend your time on everything else of
course you got to spend time with your
family your spouse I get that but I'm
talking about the Netflix time because
that's time that's just killing your
brain cells
reallocate that TV time that's not doing
anything to now something that's going
to be more productive and if you say but
just put it that's my time to relax and
unwind listen you can unwind a whole lot
easier when you're rich
work to build what it is that you want
and I'm not saying you got to go and
kill yourself watching these YouTube
videos and learning you can be relaxed
and watching some YouTube videos too
there are some entertaining channels
that can teach you how to build wealth
they can teach you how to invest your
money and that can be another form of
unwind
and it's just like starting to be
healthy when you go from eating donuts
and twinkies and ho-hos every day and
then you start eating a salad it's gonna
taste like crap
but once you start eating salads you're
going to realize oh you can make a salad
that tastes pretty good
and then you start liking the taste of
the healthy food options and then the
unhealthy food starts to taste bad
because now you've changed your palate
you've changed the way that your tongue
likes food it's the same thing with your
time
when all you're used to is watching dumb
TV shows and movies on Netflix where
soon as you start watching something
educational it's gonna feel so boring
and so annoying and so stressful
but as you start to watch more of the
educational content now all of a sudden
you're going to start liking it you're
gonna like the feeling of learning and
becoming smarter and having education
that can allow you to increase your
income and then you're gonna realize
wait wasting my time watching all of
these dumb shows isn't as fun or as
enjoyable as I thought but it takes that
initial ditching the donuts and the
ho-hos and start eating the salads it's
the same thing here you're ditching all
the brain killing content that way you
can increase your wealth content and the
reason why this is so important now is
because of the current state of the
economy and how our money is changing
now of course what I always like to say
is your mindset is the precursor for any
success the way you think is going to
change what you do and what you do is
going to change what you get and the way
that you can change what you think is to
change how you spend your time you got
to change the environment that your
brain is in when your brain is in a
toxic negative brain killing environment
whether that's around toxic people
whether it's around drugs and alcohol
while there is around a bunch of broke
people with negative attitudes you're
going to be absorbing all this
negativity and all this bad stuff that's
going to make it very hard for you to
think positive successful things that's
going to make it extremely difficult to
you for you to do anything that's going
to bring you any positivity and success
and so if you don't have that
environment around you you gotta put
yourself and force yourself in that
content and the most accessible way to
do that is just to reallocate that free
time that you have to something that's
going to allow you to learn that way you
can start changing the way that your
brain is wired and start changing the
way that your brain thinks that when I
start thinking of ways
to grow your income and build your
wealth instead of just taking a ways of
how can you just shut off now
we are entering a strange economy and
we're already in a strange economy but
that's what then accelerates the
importance of this because well our
economy is going through its own
struggles right now the Federal Reserve
Bank has set a goal to bring inflation
down to two percent but what they've
been realizing especially in 2023 is
that bringing inflation down all the way
to two percent is much harder than what
they originally thought the way that the
Federal Reserve Bank is working to bring
inflation down to two percent is by
number one raising interest rates and
then number two by doing what they call
quantitative tightening quantitative
tightening is essentially getting some
money off of their balance sheet AKA
removing some of the money in our
economic system well what they're saying
now is that this fight to bring
inflation down is going to cause more
economic pain than what they originally
thought now the reason why this is so
interesting for you to understand and so
important for you to understand is just
the general trend of the Federal Reserve
bank's opinion about our economy and how
things will progress because if you
remember when we first started seeing
the quantitative easing and the money
printing everyone said including the
Federal Reserve Bank or Central Bank
that none of this quantitative easing is
going to cause any inflation
and then of course we saw some inflation
that they said well it's nothing for you
to worry about because this inflation is
transitory
well not too long after that the Federal
Reserve Bank came out and said okay this
inflation is not transitory but we have
it under control then the Federal
Reserve Bank said okay you know what
we're going to have to raise interest
rates to bring down inflation but we
don't have to worry about raising
interest rates right now we will start
raising interest rates in the future and
then the Federal Reserve Bank said okay
we're going to start raising interest
rates right now but we don't need to be
that aggressive with raising interest
rates we can just raise interest rates
by 0.25 percent and then not too long
after that the Federal Reserve Bank said
that okay bringing inflation down is a
lot harder than we thought we need to
increase significantly interest rates
that we could cool down inflation now
what we're seeing happen is the Federal
Reserve Bank is saying yeah we still
need to stay tough on this fight on
inflation and it might actually bring
some economic pain this is the first
time now that the Federal Reserve Bank
is saying that we could see some
economic pain because of this fight on
inflation because up until well the
early middle part of 2023 the Federal
Reserve Bank kept saying that one
inflation is not a problem and then
bringing inflation down would not cause
any sort of economic pain so now the
question is
how much economic pain are we going to
see because remember in the beginning
the FED said that we're not going to see
any inflation then this had inflation
was transitory
so the question is are we really going
to see a mild recession like the better
Reserve Bank says are we going to see no
recession or are we going to see a more
significant recession that maybe the
Federal Reserve Bank doesn't anticipate
just yet and the way that you can start
to understand this is just to think what
is it going to take
to bring inflation down to two percent
now everything that I say is going to
run on that premise it's assuming that
the better Reserve Bank is going to
stick with their word of wanting to
bring inflation down to two percent
because there's always a chance
that the better Reserve Bank can pivot
and by pivot I mean that they say
you know what inflation hasn't come down
to two percent yet but the economy
unemployment jobs are becoming a bigger
concern so instead of working to bring
inflation down we the FED are going to
Pivot and we're going to cut interest
rates that way we can stimulate and
boost the economy or we're going to
print money that we can stimulate and
boost the economy the FED could do that
if the FED makes that sort of pivot
well that could boost the economy in the
short term but then that would also make
the inflation problem worse and if that
happens that's gonna completely change
the trajectory of our economy our
currency and really everything to do
with Building Wealth because
well inflation is a real problem and
inflation disproportionately hurts
people who are financially uneducated it
disproportionately hurts the poor it
disproportionately hurts the middle
class and a disproportionately benefits
the wealthy and the investors which is
where you would see a bigger divide
between the Haves and the have-nots so
everything that I say from now on is
going to be on the premise that the FED
is going to stick through with their
word with the promise of wanting to
bring inflation down to two percent
that's what they have been saying for
years now
so if the FED wants to bring inflation
down to two percent what are their tools
to do that well the Federal Reserve Bank
doesn't have fairy dust to bring
inflation down and in order to bring
inflation down they have to cool down
demand so now to understand what that
means you got to understand what is
inflation inflation comes from the word
inflate what are you inflating when you
have inflation we are inflating the
monetary Supply we're inflating how much
money is out there so now when there's
more money out there more people have
the ability to spend and when people
have the ability to spend more money
that means more people are going to want
to go out and buy a home so now if more
and more people want to go out and buy a
home you're going to see more bidding
wars if they're more bidding wars on
homes well that pushes home prices
higher this is what we've been seeing
happen
when you have these pity Wars and home
prices go higher that then goes on the
inflation report saying home prices have
gone up so significantly and then that
also pushes up inflation the inflation
numbers that we see so now when you see
this higher inflation numbers that's
when the Federal Reserve Bank says okay
we need to now raise interest rates to
bring inflation down that way we can
cool down demand so now when interest
rates go up mortgage rates go up now
people before they go out to make an
offer on a home they think twice uh you
know what I don't want to pay these
higher mortgage rates to buy a home
maybe we'll rent a little bit longer or
maybe we won't move out right now we're
just gonna stay here for a little bit
that way now instead of having 40 hours
to buy a home maybe you have 10 offers
or two offers or no offers on your home
and now what happens well if there's
less demand of people wanting to buy a
home
you see less upwards movement in home
prices which means now if there's less
upward movement in home prices the
inflation report says that home prices
haven't grown as much so you see a lower
CPI number a lower inflation number
which then signals to the better Reserve
Bank at the higher interest rates are
working but what we've been seeing
happen up until now is that the Federal
Reserve Bank has clearly worked to
increase interest rates significantly I
mean over the last 18 months or so
interest rates have gone from
essentially zero to five and some change
percent so interest rates have gone up
very quickly
and that also means that the cost of
borrowing money has gone up very quickly
and because it's happened so fast we
have yet to really see the full impact
of the higher interest rate some
economists and studies say that it takes
12 to 18 months for an interest rate
hike impact to be felt we started
raising interest rates approximately 18
months ago which means we're really
starting to see the impacts of the early
interest rate hikes now but we haven't
seen the impact of the later interest
rate hikes yet
that has yet to come now what is the
impact of lower demand and higher
interest rates
well it goes back to understanding how
does our economic system work our
economic system runs on spending we've
done a ton of deep Dives of this on
Market briefs my free financial
newsletter which is why if you haven't
joined Market briefs yet I highly
recommend you do so yes I am very biased
because I created Market briefs but I
also read Market briefs every morning
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to date on what's happening with things
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it's a really fun read so if you haven't
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description below
but our economic system runs on spending
which means the more money you make the
more money somebody else makes when you
make a hundred dollars and you go and
you spend all this money as sweet greens
or Lululemon or apple these companies
then make money and when they make money
they have the ability to pay somebody's
salary and they have the ability to open
a new store and they have the ability to
invest in new products if you don't
spend your money at these places they
don't have the ability to make payroll
they don't have the ability to hire more
employees and so when our economy runs
on spending like this the more money
people spend the more money businesses
make the more jobs that there are and
the more the economy grows well what has
happened over the last number of years
was so much money was created I read on
nasdaq's website just the other day that
the total money printing between 2020
and 2021 was right around 13 trillion
dollars that includes the covet stimulus
that includes things like the
infrastructure programs and that
includes all the other quantitative
easing by the Federal Reserve Bank
that was about 13 trillion dollars of
money printing that happened of new
money creation that entered their
economic system that was the most amount
of money we have seen enter our economic
system in such a short period of time
ever it made the money printing after
2008 looked like a drop in the bucket
back in the 2008 crash when we were
talking about almost a trillion dollar
stimulus plan people were losing their
minds because of how significant a
trillion dollars of quantitative easing
and stimulus would be now we're talking
about
multi-trillion dollars worth of economic
stimulus so just to kind of put it in
perspective it was a huge amount of
money that was printed in 2020 2021
so now all this money was created and it
entered our economy now we went into
people's hands in the form of stimulus
checks and unemployment checks and some
loans which people spent at businesses
and then also went into the hands of
businesses and corporations now again
businesses and corporations are also
consumers they spend money too and so
now when you have all this money out
there naturally you're going to see a
boost in the economy we saw the economy
boom in 2020 and 2021 even though we
were coming out of the worst recession
since supposedly the Great Depression
but no one really felt any sort of
economic pain so now all this money came
into the economic system the economy
boomed businesses had so much money that
they were expanding like crazy we saw
new offices being built new virtual
offices being built new employees being
hired raises being given bonuses being
given new departments being created and
people going out and spending money now
of course the prices of things were
Rising but it never really bothered
people because people had more money
whether it was stimulus checks on
employment checks raises or new jobs or
whatever it might be it didn't really
affect people now of course some people
were but on the general level
people still had the ability to spend
more
and then in 2022 the party started to
stop because in 2022 that was when we
started to see the money printing go
away and we started to see interest
rates start to rise the first interest
rate hike started in 2022 and that was
when we started to see that change now
it wasn't a very drastic change in the
beginning but that was when we started
to see that change where now the Federal
Reserve Bank said we need to cool down
demand
now we are here in 2023 and the Federal
Reserve Bank is very serious on trying
to cool down this demand which means
they want demand for items to cool down
that we can cool down inflation now
let's think about what that means
if you reduce the demand for people to
buy a home
that means you're going to have less
people out there wanting to buy a home
now if you go from 40 offers to buy a
home to two offers
that means you might not be able to sell
your home for above asking like you
might have thought maybe you might even
have to eventually cut the listing price
if you don't get enough offers in the
first 30 days
and so if we see demand fall for items
now obviously that could impact the
housing market in certain ways but that
would impact many different businesses
because just think about think about it
this way
if Chipotle is not seeing people go into
its stores anymore because the demand
for Chipotle has gone down what does
that mean that means they might not open
another store which means they might not
hire more store people because well
they're not operating more stores maybe
that means they need to get rid of some
of their research people because they're
not going to be creating new products
and new new lines of things yet because
they don't have the revenue to do so and
when you start to see that across the
broader economy that's going to have
bigger impacts because if businesses see
less demand
they're going to have to do something to
manage the profit margins because
businesses
want to maintain a certain level of
profit and so now if demand Falls that
means revenues fall
so if businesses see the revenues fall
they're going to have to do something
because if revenue is fall but they're
costing the same that means a profit
shrink
but that's not what we're seeing happen
we're not seeing revenues fall with
profits or with operating costing the
same we're seeing operating costs Rising
now of course inflation impacts
everybody including businesses which
means businesses have to pay more money
to get their things and to pay for the
labor which means if demand's falling
revenue is falling well costs are also
Rising not to mention the fact that in
2020 and 2021 we saw the largest boom in
corporate debt ever
ever corporations use the 2020 and 2021
low interest rates to load up on debt
and why wouldn't you these were the
lowest interest rates that we saw ever
and so corporations said how about we
use this as an opportunity to go out and
borrow more money
corporations did that now some
corporations use this more money to
invest in their business to use this
debt to go and creep or income that's
what you would want to do with debt
right it's like going out borrowing
money to buy a rental property that's
what most people would consider good
debt but then some corporations also did
the opposite they did what many might
call bad debt they went out and they
borrowed money to make their
shareholders richer think of it like
going to the Gucci store not having the
money to buy a three thousand dollar
handbag or wallet or whatever it might
be and then instead of saying you know I
can't afford it you just put it on your
zero percent APR credit card because the
interest rates are so low
well many corporations did something
similar they use it as an opportunity to
load up on cheap debt and then use this
money to do a stock buyback or a
one-time special dividend meaning
corporations took out huge sums of money
at low interest rates and then use this
money to give it away to their owners
their shareholders to make the
shareholders richer which is great in
the short term you feel like you're rich
you got the Gucci handbag or you got the
money in your pocket your stock price
went up
but you're going into debt to fund
something that is not income producing
see if a business is going into debt to
open up a new store or to open up a new
manufacturing plant that's an income
producing asset you're going into debt
to produce more income but when you go
into debt to do a stock buyback which
raises the stock price or you go into
debt to pay out a dividend that's not an
income producing asset that's going into
debt to make your shareholders richer
and in 2020 and 2021 we saw a record
amount of levered corporate BuyBacks
levered corporate BuyBacks are
incorporations use leverage AKA debt to
buy back their own stock now okay that's
the first part of that the second part
of that is that corporations don't have
30-year fixed rate mortgages where they
have adjustable rate mortgages and most
corporate debt is readjusting every
three to five years which means that in
the next 24 months we're gonna see a
huge chunk of corporate debt readjust
well now let's think about that for a
second because a few years ago interest
rates were the lowest rates ever that's
when corporations started taking out
these huge sums of money in the next 24
months when interest rates readjust if
interest rates are
higher
that means the payments on these debts
will also increase so now let's go back
to the diagram demand is falling that's
what the Federal Reserve Bank is working
for which means revenues are falling
unless corporations can find a way to
increase Revenue but it's a little bit
tougher when you're seeing a slowing
economy so revenues are struggling to
rise or they're starting to fall costs
are rising because while inflation
higher labor costs higher product costs
but then you also have the higher debt
costs because corporations don't have
30-year fixed rate mortgages so debt
servicing costs are to rise as well this
then puts a lot of businesses in a tough
predicament which is
okay our costs arising our revenues are
falling we're going to have to make a
change
now change is either we're going to
increase our revenue or we're going to
cut our costs again like I just said
it's kind of difficult to increase your
Revenue when people have less money to
spend and people have less money to
spend because inflation is so high
people have less money to spend because
well people are seeing kind of the
economy slow down eventually if that
continues they're going to see less job
opportunities so people have less money
to spend because of that
but then you also have
how do you cut your costs and that's
where one of the most accessible ways to
do that is by letting some people go now
obviously we've been seeing this happen
in the tech sector and some other
sectors now
and this is where now the question is
how much further will that go because it
ultimately comes down to inflation if
the Federal Reserve Bank wants to bring
inflation down to two percent
they're gonna have to do more work in
order to do so what does that work
raising interest rates or what is
Raising interest rates do it cools down
demand even more cooling down demand
even more slows down the economy even
more it slows down its revenues even
more and this is that situation that we
are just starting to scratch the surface
of this happening
and it doesn't look like it's going to
be going away anytime soon because
inflation still has a way to go and we
still have to feel the impact of the
higher interest rates and now businesses
are starting to see the impacts of one
the higher costs and the debt servicing
costs starting to rise and this is
something that over the next 24 months
we're going to see more and more of this
progress
and what most people want to assume that
everything is just going to be just fine
you have to pay attention to the red
flags because the reality is this could
create a lot of opportunities it could
also hurt people financially if you're
not financially prepared now you can
look at what the Federal Reserve Bank is
saying the Federal Reserve Bank says
that their prediction is that inflation
is going to come down to two percent by
2025. well what does that mean for
inflation to come down to two percent by
2025 that means between now and 2025
we're gonna see above two percent
inflation well that also has its
consequences because like what I've been
talking about what does inflation do
inflation hurts your buying power and so
if we continue to see higher than two
percent inflation that means more and
more people are going to have less
ability to spend that also causes
economic pain so now if you kind of
paint the picture of a triangle we have
three different things happening at the
same time we have the high inflation
which is slowing down the economy
because High inflation hurts people's
ability to spend end when you have high
inflation that means a rent is more
expensive your groceries are more
expensive see less money to spend on
discretionary items that means these
other businesses have less money coming
in because people don't have the ability
to buy their products
then on the second corner of the
triangle you have the higher interest
rates higher interest rates are also
hurting the economy because well the
higher interest rates are cooling down
demand higher interest rates makes
borrowing money more expensive which
hurts people's ability to spend right in
our economic system you can spend money
with the money you were to earn and you
can also spend money with credit that's
how money works on their economic system
because people don't just spend money
based off how much cash they have in
their bank account they spend based off
of how much debt or credit they can
qualify for
as interest rates go up the amount of
credit that's available goes down
because less people are likely to borrow
money which means less spending is
happening which also cools down the
economy and then the third thing that we
have happening so we have the high
inflation the higher interest rates is
the slowing economy and that's something
that we're seeing happen right now and
this is where everybody has their
question mark and their fingers looking
right now is is the economy going to
slow even further now of course
everybody has their own opinions and
people don't want to create any Panic or
fear but you have to understand this is
what's happening the high inflation
slowing down the economy the higher
interest rates are slowing down the
economy and we're just starting to see
the impacts of all these things and the
economy is just starting to slow now
some people are saying that this is
going to be contained to Tech but I
don't want you to be blindsided by
what's happening because
your job as a financially educated
person is to be prepared for the worst
and prepared for the worst means when
you have economic pain being prepared to
capitalize on opportunities the reality
I'm going to be very honest with you the
reality is when you see economic pain
that also creates the opportunity to see
the most economic gain
and the people that can get the most
economic gain out of the economic pain
are the people that are prepared and the
people that are financially educated
which means you need to be financially
prepared and educated that means number
one you need to have cash put aside to
be able to capitalize on opportunities
you can see the greatest investment
opportunity in front of you but if you
don't have the money to take advantage
of it it doesn't do you any good
that means again spending less earning
more to have the ability to capitalize
in Opportunities and number two working
to build that Financial education
spending your time to learn to build
that Financial education because when
you have these two things together and
then you see an opportunity you have the
ability to capitalize on the opportunity
now
the reality is somebody will capitalize
on these opportunities that has always
happened every time we see an economic
slowdown there's a reason why Market
crashes and recessions create more
millionaires than any other time it's
because some people are prepared for it
and they're able to capitalize on the
opportunities when they happen now the
question is is that going to be you
and you have to make the decision for
yourself you can hate it you can
complain about it but this is the
reality of the game
now
Financial education is obviously so
important and that's why I'm working
here to help
people learn about what's going on that
way you can finally capitalize in
opportunities but the reality is
booms and busts are part of our economic
system they have happened and they will
continue to happen we've seen the
recession pretty much every decade for
the last century and to think that we're
not going to see some sort of recession
at some point in the future is just it
doesn't make any sense it's based on no
logic whatsoever
now nobody knows when it's going to
happen and I think that's the
misconception is everyone's trying to
time it no one knows when it's going to
happen it will eventually happen but
this is where you want to be prepared
and pay attention to all the things that
are happening because unlike previous
recessions we have some different
situations now such as the higher
inflation
because prior to pretty much every other
recession in modern history
the Federal Reserve Bank used to be able
to create inflation to pull us out of
the recession right when you see the
economic slowdown the FED would just cut
interest rates or print money and inject
it into the economy to stimulate the
economy and you didn't have to worry
about inflation because well inflation
wasn't a problem then but today
inflation is already a problem
and now we're starting to see the
economy slow down so the Federal Reserve
Bank doesn't have the same ability
to inflate the way that they did before
can they absolutely the FED can cut
interest rates and print money and throw
it into the economy but the consequences
of that are much more apparent now
because the inflation Genie has already
come out
and so this is where
you have to be cautious and understand
this and understand the risk factors
because this can also create the most
opportunities the most potential
economic pain can also create the most
potential economic opportunities and I
know this makes a lot of people upset
when I say this but this is the reality
I mean you can be mad at gravity for
existing but the best thing for you to
do is understand gravity and learn how
to use it to your advantage this is
what's happening in our economic system
you can hate me for telling you or you
can understand it that way you can use
it to your advantage because I want you
to be able to build wealth that we can
take care of yourself your family and
your community it is your duty to become
financially educated that way you can
bring that wealth for yourself and your
family because it's you who's got to pay
for your bills it's you who's got to pay
for your kids college or just you who's
got to pay for building that Financial
foundation for your family
is if you want to be able to do that you
have to get financially educated and get
prepared and that means understanding
what's going on that way you can
capitalize on whatever the opportunities
will be your way now of course I'm
working to keep you updated here if you
haven't joined Market briefs yet do so
briefs.co Market that's an easy way to
stay up to date but this is where you
need to make sure that you're working
the number one spend less number two
earn more and then number three invest
like crazy I knew I wanted to be rich
when I was a kid not because I was some
greedy money hungry child but because I
just wanted to buy my dad's time back my
parents are immigrants from a state in
India called Punjab and the way it works
is when your parents come from a
different country a poorer country and
then they come to a place like America
now not only