Why alternative investments matter, is your money safe and WOW for Bitcoin holders!!!
58% of Americans living paycheck to paycheck - And how we will prevail
👋 Hello Everyone. As the news cycle dies off regarding TikTok and the BRICS nations we seem to have a little peace overall in the markets. We need to remember that there is a ton of manipulation going on and our best bet is to be cautious but optimistic as we work through all of the struggles going on throughout all markets and sectors. There are still bright spots with CDs and High Yield savings accounts providing 15 year highs and Blue Chip dividend stocks offering growth and income through uncertain economic times.
With respect to the certain onslaught of news regarding FED NOW - keep your eyes and ears open as you will be fed a ton of information talking about all the great points of this new monetary system but there is more than what meets the eye. This is just another step towards governmental control over all aspects of our finances. More to come.
📣 58% of Americans are living paycheck to paycheck - And what can be done about it! This is a staggering headline and percentage but I don’t doubt the accuracy. So many people and families get caught in the lifestyle creep scenario (keeping up with the Joneses) and it’s a tough cycle to break. Tell me is this sounds familiar - You move to the “it” neighborhood so you can be in the right school district. You then have to get the upgraded car to look the part, 2 cars if you’re married, and then all the other ancillary items that go with it. Next thing you know you are barely scraping by, even with your collective 6 figure income. You stop investing and making moves towards your financial freedom, you realize you are house broke and how do you get out????
My top 3 tips to stabilize and get back on track 1) You have to create a real budget and figure out your debt to income ratio 2) You either have an income problem or a spending problem. Which one is it? 3) Once the above 2 items are figured out you have to find a way to save/invest 15-20% of your net income. You can’t remain house broke and scraping by for too long or you will not have the means to work towards financial freedom.
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🎙️ I am also really excited about how quickly the podcast has grown. So thank all of you that have downloaded and given it a listen. For those of you that have not stopped by it is the Rich Habits podcast on Spotify and Apple. And please feel free to DM me or message on any platforms and let me know your thoughts and takeaways. For all PAID community members please note that the private livestream is up and running and I am so excited for what we will be covering this week. It is scheduled every Thursday @ 7pm EST.
💸 This is for all of you. Should life insurance be a part of your wealth building strategy? If you are in your 20s and 30s you have age and good health on your side and therefore you can achieve favorable terms. I like term insurance (for younger clients) because you can buy a lot of coverage for very little money. And even though you may not have a need for death benefit immediately it is one of those things where you build the well before you are thirsty! Once you have a mortgage, kids and general debts you will have the need and protections but you will have the benefit of purchasing while you were younger and therefore the benefits of the cheaper premiums.
You really only use permanent insurance for a long term need for death benefit so you can have a long term level premium. I don’t necessarily use these policies as an investment, even though it grows tax free and can get an investment level return I have found that the internal fees negate the investment gains in most instances. BEWARE - A lot of insurance agents only sell the investment component but they are really in it for the substantial commissions it brings.
The main takeaway is - You will not make as much money using permanent life insurance as you would in a traditional investment portfolio. Life insurance is all about the death benefit and anything else is secondary.
🚨 Why Alternative investments are important in uncertain economic times. We have a weak dollar, uncertainties in the markets, and the looming FED NOW program so diversification is as important as ever. What is considered an alternative investment? Think precious metals like gold and silver, cryptocurrencies like Bitcoin (up 42% in the last month) Etherium, Cardano, real estate, art and even vintage luxury items. These all provide a great hedge against a weak dollar and bad economic times.
My suggestion is to look into these options and have a portion, maybe 10-15% of you investment portfolio in these categories.
🤔What is real? Is the banking crisis real or fabricated to cause a ripple effect leading up to the FED NOW launch? Seems crazy timing wise and makes me wonder what the levels of manipulation really are. One thing I do know - I believe that the fear of our money being safe should be calmed somewhat. I just don’t think we should panic over some bad management of these few banks. Now that doesn’t mean I think all of us should just sit idly by and leave our money sitting. As we speak of daily I would still be diversifying and having your money in 1) High Yield savings accounts (I like Wealthfront, IFB direct and Western Alliance) 2) CDs 3) Take a look at T-bills or even I-Bonds also. In these times you must keep your eye on the prize.
Weekly Book Excerpt (Rich Dad Poor Dad - Robert Kiyosaki)
“‘“The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth in what seems to be an instant.” I love this quote and discuss the premise of this daily. It all comes down to financial literacy, mindset and the lack of it throughout society. We were not taught it in schools and most parents either didn’t have the knowledge or did not pass it down. Overall I think it is a massive societal issue and that is why I love sharing my knowledge and experiences to help others through the learning curve on their journey to financial freedom.
Money Mindset - Weekly insights
During these uncertain times I just simply want you to take the time to really have all your ducks in a row. At least to the best of your ability. Does your career/job feel shaky? If so get ahead of things and tighten up your skill sets and resume. Is money tights? How about adding a side hustle? This could be something you do from home or just on weekends. This added income could make the difference between just getting by and thriving during a difficult economic period.
More to come and thanks for joining!