I woke up today to see that I was down near 5% portfolio, the first time in a long time
And a few years ago, I would have panic and sold everything but I’m actually going to be buying a lot more.
How to Get Rich During a Recession | Investing for Beginners
1. Confidence: Understanding and Preparation
– This doesn’t come from, Oh I’m so cool
– It comes from understanding and preparation
– Kind of like how Benjamin Franklin always said, Luck, is when opportunity meets preparation.
When It comes to Understanding: This comes from Knowledge
– Read these two books
– The intelligent investor Benjamin Graham and The little book about investing by John C bogle
– One will teach you how to buy individual stocks and one will teach you everything about Investing in Index funds
Tip: Read them both with a notebook to take notes, and read them both this week. You don’t want to miss out.
Preparation: It’s going to be hard to focus on the marathon when you hungry and thirsty and you haven’t paid your rent.
– You’re going to need an Emergency account with a minimum of 6 months worth of expenses, 6 months is enough time to go out there and find a new job.
– I usually recommend you build it by savings 10% of your income every time you get paid, but, since you might need it much sooner I recommend doing 20-50% of your income
– And also cutting your expenses and putting the extra money on the side.
Tip: Currently I have 6months worth and it took me less than 3 months, and I save that money in SOFI.
Link to Sofi: http://bit.ly/sofimoney
Link to Wealth Front: https://www.wealthfront.com/
Link MY budget Video: https://www.youtube.com/watch?v=K2iqN4KT8eo
2. Keep Things Simple ( investment strategy)
– I have friends that love complicating every task
– But usually, the simple plan works best
– So here is exactly what I currently do and what you can do
I use Acorns:
– Invest in a diversified portfolio of ETFs and bonds, and that way I always stay balance, example right now I’m down 5% instead of 7-9%. Because I have a balance.
– And every month I invest the same amount of money unless something crazy changes
– And because of this new change in the market, I’ll be doing things a lot different
For People Buying Individual Stocks
– Pick whether you can to make short term profits or long term gains
– The key is going to be to pick a niche in the area of investing you want to go into
– For example technology companies and learn how to analyze them, and this could be a great chance to start making a ton of money
Tip: The idea does not spread yourself to think
3. Make a Plan on how much money to invest
– Again the plan is simple
– I will invest almost double of what I was investing for the last year
– So a little bit under 10% of my income, which should be around 1000 – 15000 bucks depending.
Heres how I would do it :
– Every time you get paid, if you have the emergency fund
– Then just take 10% of that money and put it to work in the market
– And if it keeps going down, keep Buying and buying
My Plan Exactly:
– I never put my eggs in one Basket
– I’ll be taking the wage I pay myself and giving 100% of that money to Acorns, plus 500 from my other business. Each and every single money
– And if the market crashes, then I’ll most likely invest all the money for the year at once
Even More of a crash: invest the next year’s profits and so and so on.
Tip: I have multiple streams of income, so this is still only 10% of my overall money. ( so for you, just invest that 10% )
Bonus: during the last recession, the people that made it, walked about with (310%) in 10 years ( that’s you doubling your money every 3 years ): Just the Stock Market
And Even Dave Ramsey said during the last crash, he bought millions worth of stuff, on 15-20 cents on the dollars.
This will be a good year, just don’t panic.
– And although I don’t agree with Dave Ramsey with everything he says.
– He had a great quote: “ no one gets hurt on a roller coaster unless you jump off”
* PRO TIP*
INFORMATION IS EVERYTHING
✅2 FREE AUDIOBOOKS✅
🎁ACORN FREE $5🎁
⚡FREE KINDLE UNLIMITED⚡ (traditional reading)
👨🏽💻DISCORD PRIVATE GROUP👨🏽💻
My Camera Gear: https://kit.com/tommybryson/video-recording-gear
✔ Help Us Reach 250,000 Subscribers: https://goo.gl/0wvm6w
😎All My Social Media😎