I actually quote that directly from Robert Kiyosaki and take no credit for the title. The coin always has 2 sides like he said. And a prudent investor is the one that is standing on the edge, listen to both sides of the argument and making an intelligent decision.
I thought I would share some of my thought during this crisis, or opportunity, depending on what side of the coin you are on. If you have been following Robert, You would see that a correction in the economy is coming to us no matter what.
The virus is simply a pin that pops our economic bubble that has been built on unstable debt. If it is not the virus that pops it, it will be another event.
This will be my 1st time living through a recession so here we go. The below is more like a note to myself more than anything. These are not financial advises so before you do something, talk to your lawyer or professional financial advisor.
Love him or hate him, our current president Trump has a famous quote: “It is always great to have some cash in the downturn”.
Liquidity is the key to survive and thrive in the recession. Liquidity, such as cash, or access to cash can help you buy essential items, and to be able to pull the trigger on the opportunity as they arrived.
I’m currently in the process of refinancing most of my rental to access the equity that has been appreciating for years. The appraisers are still evaluating the market base on the previous 6 months so we are good to go. As long as the home would still cash flow positive after the refinance, I would do it now.
The market gives you equity, the market can also take it back from you. So grab it now while you still can.
Good thing is that the fed lower the interest rate to 0% if not negative in the future to save this economy. I would take advantage of this opportunity to get on any line of credit, increase my access to cash and be in a ready position.
Long story short, Stay liquid my friends!
2. Precious Metal.
Now, this is going to confuse you since I just pretty much mention that we should hoard cash. But what happens if the United States went bankrupt? They are printing money like never before with these bails out packages.
The more they print, the less value your cash is going to be. thinking of all that money in the bank will become worthless someday
The best way to hedge against this is a precious metal – Gold and Silver. This is a topic by itself so I won’t discuss it here. but start looking into it.
As the time of writing this post. you can’t even buy the popular coin on apmex.com anymore because they are out of stock. Everybody wants gold and silver in the time of uncertainly.
Gold holds value for millions of years through generations. It holds value in the past, it will hold it’s value now, and it will hold it’s valued after you die.
You can print money, but you can’t print gold. Now go get some
3. Gear up on Asset Protection
Unfortunately, we are living in the most litigious society there is on Earth. what do people like to do when there is an economic contraction? They sue for MONEY!
The number of lawsuits always went up during times like this. Lien up all your assets. Talk to a good asset protection lawyer, get everything set up and ready to weather the storm.
4. Focus on non-capital intensive business
I don’t know about you but I can earn a dollar without spending a dollar, I will do it. There are many businesses that do not require an extensive amount of capital to start.
If you have been tempted to try on a network marketing business opportunity, now is the time. Revshare is a perfect opportunity for example.
Time like this is a perfect time to test your business for resiliency. Are you resilient with multiple streams of income?
Save your capital for a GREAT deal, everything else can be replaced with your hustle.
In the pictures:
Jenny and I while in Korea last year during this time. Can’t wait for the next trip!