Looking around at the economic turmoil we’ve experienced post-pandemic, it’s easy to get discouraged. You may feel that everything you thought you knew about creating and preserving wealth is wrong.
You may think that finding prosperity and lasting wealth despite the chaos is an impossible task.
Fortunately, there are some steps you can take right now to help keep your wealth from being completely devastated by inflation, bank shenanigans, wrongheaded policies, and market downturns.
Try to remove as much banking from your life as possible.
More people than ever are aware that banks are responsible for much of the current economic turmoil. But, many Americans don’t think they have any other choice but to use a conventional bank. I realize that most people need some type of bank to pay bills. (I prefer a credit union for that purpose).
However, you might want to avoid using banks for larger purchases and transactions. Don’t get a bank account simply for convenience. In this digital age, you have many alternatives to store all your cash in increasingly insolvent banks. You also don’t want to get any financial advice from a bank salesperson. There are alternatives to traditional banking that may make even more sense in your unique situation. Contact me, and I’ll gladly send you information about these alternatives.
Pay down debt as soon as you can. Eliminating debt, starting with consumer debt, can result in less stress and better cash flow. Even if you must sacrifice a little, you should pay off your credit cards and small loans and not use them again. Debt keeps people from being able to invest and take advantage of the fantastic deals you see during economic stress. Your goal should be to be 100% debt free eventually.
Have emergency cash on hand. The cash management system I design for my clients lets them strengthen their financial foundations as they build and protect their cash reserves. When you master your cash flow, you open yourself to incredible opportunities.
Become more financially literate. I like to read well-written self-improvement and financial books. Learn from those who are doing what works and will share the details. Watch relevant videos, attend webinars and live lectures, and always be learning.
Discover the many benefits of life insurance. Life insurance isn’t just for when you die; it can also benefit you while alive. When you buy the right amounts of the correct type of insurance, you’ll be amazed at what a versatile and efficient financial tool it can be. For instance, many of my clients create untaxable wealth while financing high-ticket purchases using specially-designed whole-life policies. Whatever you choose, you should always review your insurance and determine whether what you have is the best choice for your goals and risk tolerance.
Exercise caution in the stock market. The closer you get to retirement age, the more you may want to ignore Wall Street hype. Remember that the stock market is somewhat irrational and fueled by greed and fear instead of logic. There are less risky ways to invest, however. You should contact your financial advisor to discover the best ways to grow your money without taking on too much risk.
Don’t buy for the sake of buying. Avoid the allure of unrestrained consumerism and stop buying things every time you click on an ad. When you take a break from consumerism, you just might see the actual value of money, which is freedom and peace of mind.
Stop listening to TV and internet money gurus. Most of the advice given by the Kramers, Ramseys, and Ormans of the world is suspect, if not altogether wrong. Instead, turn to a trusted, experienced financial professional. This should be someone you have spent time vetting and who has an untarnished online and offline reputation.
Realize your home is neither an “investment” nor an ATM. Regardless of what you are led to believe, home ownership is not a magical path to wealth. If you want to invest in real estate, a better choice might be a cash-flowing property with favorable terms purchased at a deep discount from motivated sellers. If you currently own a home, beware of pulling out equity through a HELOC unless it’s a life-and-death emergency.
Start a side hustle. Research what skills and services will be in demand as the economy slows. Then provide those goods or services people need that can’t be duplicated by AI or bought on Amazon. Keep your expenditures mean and lean and avoid businesses with high barriers to entry and excessive startup costs.
Summing it up: These are just a handful of the strategies I share with my clients to help them prosper, no matter what’s happening in the world around them. Personal finance has many traps, and you want to avoid as many of them as possible.