Latest / Money And Wealth With John Hope Bryant / Built for the Storm: How to Protect, Survive & Thrive in Uncertain Times

Transcript

Built for the Storm: How to Protect, Survive & Thrive in Uncertain Times · Money And Wealth With John Hope Bryant

• 0:00
  Speaker 1: Welcome to Money and Wealth with John Hobryant, a production
• 0:03
  Speaker 1: of the Black Effect Podcast Network and iHeartRadio. Hey, hey,
• 0:15
  Speaker 1: everybody is John Hope Bryant, and this is Money and
• 0:18
  Speaker 1: Wealth on the Black Effect Network on iHeart Radio. This
• 0:23
  Speaker 1: is twenty twenty six first quarter. And this is an
• 0:28
  Speaker 1: important podcast this episode because this deals with what happens.
• 0:34
  Speaker 1: Not when everything's rosy and wonderful and the shun the
• 0:37
  Speaker 1: sun is shining outside. What happens when the economy shakes.
• 0:44
  Speaker 1: For many, they are experiencing here and around the world,
• 0:49
  Speaker 1: a bit of an unstable time time that's making some
• 0:52
  Speaker 1: folks feel nervous. So we're going to talk about how
• 0:56
  Speaker 1: to protect yourself, how to survive, and how to thrive
• 1:00
  Speaker 1: in uncertain times. Some of you've heard me say, and
• 1:05
  Speaker 1: this is how I live my life, that rainbows only
• 1:08
  Speaker 1: follow storms. It's not only good theology and good theory,
• 1:11
  Speaker 1: it's also a scientific fact. You cannot have a rainbow
• 1:16
  Speaker 1: without a storm first. So let's whether the storm, don't
• 1:20
  Speaker 1: run away from it, run to it, run through it.
• 1:22
  Speaker 1: Because you cannot grow except through legitimate suffering. And as
• 1:26
  Speaker 1: Warren Buffett has famously said, when folks are greedy be afraid.
• 1:31
  Speaker 1: When folks are afraid, well be greedy. So there are
• 1:36
  Speaker 1: fortunes to be made in down times. Yes I said it,
• 1:42
  Speaker 1: but not in the way you think. I need you
• 1:47
  Speaker 1: to stop all the crazy stuff. Just let this out
• 1:51
  Speaker 1: right at the top of this podcast. When the wind
• 1:57
  Speaker 1: blows hard, you don't curse the win. You strengthen the foundation.
• 2:07
  Speaker 1: I told you a year ago. I told you two
• 2:10
  Speaker 1: years ago not to not do it, but to be
• 2:16
  Speaker 1: careful of cryptocurrency. I told you that the best of
• 2:21
  Speaker 1: the cryptocurrencies was probably Bitcoin. I told you that blockchain
• 2:28
  Speaker 1: technology was something I actually believed in and would invest in.
• 2:33
  Speaker 1: The underlying digital currency concept is already with us. Your
• 2:38
  Speaker 1: all your cards that you use, your ATM card, your
• 2:43
  Speaker 1: payment cards are all for versions of digital currency. We're
• 2:47
  Speaker 1: already using digital currency. We're not we're increasingly not using
• 2:50
  Speaker 1: a physical dollar being passed around. But crypto is a
• 2:54
  Speaker 1: whole other thing. And to make it really blunt, the
• 2:59
  Speaker 1: best best of it has just taken a fifty percent
• 3:05
  Speaker 1: off sale. So crypto went up, ran up to one
• 3:09
  Speaker 1: hundred and twenty thousand dollars, give or take, and about
• 3:15
  Speaker 1: now it's about half that. And so if you bought
• 3:19
  Speaker 1: it at you know, twenty thirty, forty fifty, you're still
• 3:24
  Speaker 1: all good at seventy, say thousand dollars. But if you
• 3:30
  Speaker 1: bought it at one hundred thousand dollars because you thought
• 3:33
  Speaker 1: it was a sure bet. If you bought it at
• 3:36
  Speaker 1: one hundred and twenty thousand dollars, and some people bought
• 3:38
  Speaker 1: it at one hundred and twenty thousand dollars, that's why
• 3:41
  Speaker 1: the price got that high. And now you're at seventy
• 3:44
  Speaker 1: thousand dollars. And if that was your nest egg, if
• 3:49
  Speaker 1: you believe the hype, because it's really built on promotion,
• 3:53
  Speaker 1: then you are in a world of hurt unless somebody
• 3:56
  Speaker 1: bids that price back up. And there is no cash
• 3:59
  Speaker 1: flows to guarantee cryptocurrency. There are no assets. It's belief, hype, confidence,
• 4:08
  Speaker 1: a tribe effect. I mean, unlike when a company goes
• 4:13
  Speaker 1: busted and you can go and grab some real estate
• 4:16
  Speaker 1: or client list or something. Crypto is different. So I'm
• 4:20
  Speaker 1: not telling you not to do it. And some people
• 4:23
  Speaker 1: will do remarkably well, by the way, and some there
• 4:26
  Speaker 1: would be some really big winners, but it's probably gonna
• 4:29
  Speaker 1: be the whales. It's gonna probably be the really big
• 4:31
  Speaker 1: players I was talking to. I was in Dubai last
• 4:35
  Speaker 1: week and at a dinner table talking to somebody, a
• 4:41
  Speaker 1: very prestigious reporter from a very prestigious publication, financial publication,
• 4:48
  Speaker 1: and they were talking about a conversation they had with
• 4:51
  Speaker 1: one of the biggest crypto players ever and he had
• 4:58
  Speaker 1: run he'd put everything in. He run this thing up
• 5:00
  Speaker 1: to a quarter billion dollars a portfolio. He owned two
• 5:03
  Speaker 1: hundred and fifty million dollars of crypto and not this crash, now,
• 5:10
  Speaker 1: this correction, I'm sorry, But when the whole FTX thing
• 5:15
  Speaker 1: went down and all that kind of stuff and there
• 5:17
  Speaker 1: was a market correction, he was involved with FTX and
• 5:21
  Speaker 1: he went from quarter billion to zero. He lost well
• 5:25
  Speaker 1: not everything, but literally almost everything, and he said he
• 5:30
  Speaker 1: would never invest in it ever again. Now I'm not
• 5:34
  Speaker 1: telling you to do that, I'm I'm saying that if
• 5:36
  Speaker 1: you want to take five percent, here's the rule, by
• 5:38
  Speaker 1: the way, so you can just ignore everything I've said
• 5:40
  Speaker 1: at the last five minutes. If you're a pro crypto, right,
• 5:43
  Speaker 1: here's my rule. If you want to invest in a
• 5:46
  Speaker 1: speculative anything in cryptocurrency is speculative, right, five or ten
• 5:52
  Speaker 1: percent take five or ten percent off your investable capital,
• 5:57
  Speaker 1: your portfolio and invested in crypto Las Vegas sports betting,
• 6:04
  Speaker 1: you know, lottery tickets, your cousin Pookie's, you know, newest
• 6:10
  Speaker 1: idea that's unproven. If you want to take a flyer
• 6:15
  Speaker 1: on something, you want to take something as high risk
• 6:17
  Speaker 1: that may be high reward five or ten maximum. So
• 6:22
  Speaker 1: if you have one thousand dollars, you want to bet
• 6:25
  Speaker 1: fifty to one hundred dollars maximum of that on something
• 6:29
  Speaker 1: that might go completely This is no time, this is
• 6:34
  Speaker 1: no time to be fancy. My friend Bishop Tdjakes Chairman
• 6:38
  Speaker 1: t DJs would say, let's make boring sexy again. You
• 6:43
  Speaker 1: already know that. I would say, let's make smart sexy again.
• 6:47
  Speaker 1: It's time to get back to the fundamentals. Uh, So,
• 6:51
  Speaker 1: let's talk about these fundamentals. There's anxiety in the country.
• 6:56
  Speaker 1: And we're the biggest economy in the world where the
• 7:00
  Speaker 1: like the quality are currency and so it's you know,
• 7:04
  Speaker 1: it's tough all around the world. It's the least tough
• 7:07
  Speaker 1: in the United States, but it's still anxiety producing and
• 7:13
  Speaker 1: the markets are volatile. Part of the concern is that
• 7:19
  Speaker 1: they keep rocketing forward, feeding on their own promotion and
• 7:27
  Speaker 1: their own encouragement and almost disconnecting. It feels like for
• 7:32
  Speaker 1: many like this is that thing from the real economy,
• 7:35
  Speaker 1: and we have a case shaped economy here where the
• 7:37
  Speaker 1: wealthy well to do myself included, are doing better and
• 7:41
  Speaker 1: those in the middle at the bottom seem to be
• 7:43
  Speaker 1: doing and feel like they're doing worse. I cover all
• 7:46
  Speaker 1: this in my upcoming book, Capitalism for All, by the Way,
• 7:49
  Speaker 1: which comes out in April of twenty twenty six. Will
• 7:53
  Speaker 1: get your copy for that. It's a Capitalism We're All
• 7:56
  Speaker 1: is released from the two hundred and fifty anniversary of America.
• 8:00
  Speaker 1: But we have markets that are volatile, and things don't
• 8:04
  Speaker 1: go up forever, so there's probably going to be a
• 8:06
  Speaker 1: correction at some point. I think you're seeing a little
• 8:09
  Speaker 1: bit of that with cryptocurrency, because basically the market has
• 8:14
  Speaker 1: just taken the weakest part of the stool and leaning
• 8:17
  Speaker 1: putting pressure on it, and that part is starting to dip.
• 8:22
  Speaker 1: The weakest part of any investment portfolio, these markets will
• 8:27
  Speaker 1: get pushed out. You're seeing some technology plays that are
• 8:33
  Speaker 1: getting squeezed. Investors are starting to ask real questions and
• 8:37
  Speaker 1: not just believing the hype. So markets are volatile. These
• 8:41
  Speaker 1: are anxiety, right, you know, anxiety producing things. Inflation is
• 8:45
  Speaker 1: still sticky. There's AI disruption, layoffs in tech and finance,
• 8:54
  Speaker 1: political division, small business pressure, consumer confidence, fragility, These things
• 9:04
  Speaker 1: and a couple of these things would produce anxiety, all
• 9:07
  Speaker 1: of them together that people freaked out some people, But
• 9:12
  Speaker 1: again there's opportunity in the middle of the storm. I've
• 9:16
  Speaker 1: lived long enough to know something. Recessions don't destroy disciplined people.
• 9:22
  Speaker 1: Panic does don't panic. I invest alongside billionaires, why because
• 9:37
  Speaker 1: the likely of them going down is very, very low.
• 9:41
  Speaker 1: So I'm if I'm hiding under the same tree they're
• 9:44
  Speaker 1: hiding under, it's going to be the safest tree in
• 9:48
  Speaker 1: the forest, the strongest tree in the forest, maybe in
• 9:52
  Speaker 1: the whole region. And so I also would give that
• 9:58
  Speaker 1: philosophy around what to invest in, not just who to
• 10:01
  Speaker 1: invest alongside of to sort of parrot strength behavior, but
• 10:07
  Speaker 1: what things do you use every day? Like do you
• 10:12
  Speaker 1: you know, do you use toilet tissue? Do you use
• 10:15
  Speaker 1: you know, do you buy groceries? Right? Okay, so let's
• 10:17
  Speaker 1: think about the fundamentals. Do you do you get gas?
• 10:21
  Speaker 1: You know? What do you use in your life? Right?
• 10:25
  Speaker 1: I'm I mean Walmart, which is a basically old school
• 10:29
  Speaker 1: retailer created by Sam Walton with a pickup truck in
• 10:32
  Speaker 1: the storefront, just by adding digital and AI and the future,
• 10:40
  Speaker 1: basically leading the future but staying true to their roots,
• 10:43
  Speaker 1: just hit a trillion dollar market capitalization, the first traditional
• 10:47
  Speaker 1: retailer ever to do that. I think Walmart to say,
• 10:50
  Speaker 1: bet you. Normally you'll never hear me promote a stop.
• 10:55
  Speaker 1: I just think that, you know there there are a
• 10:57
  Speaker 1: couple that are just fundamental. Now, you're not going to
• 11:00
  Speaker 1: get huge returns, but I think your foundation is going
• 11:03
  Speaker 1: to be pretty solid. There's some tech companies that I
• 11:07
  Speaker 1: think aren't going anywhere. I don't think Apple is going anywhere.
• 11:11
  Speaker 1: You likelihood Google's not going anywhere. Walmart, I don't believe
• 11:17
  Speaker 1: is going anywhere. But uh, but in these times, you
• 11:21
  Speaker 1: don't not looking for up. You're looking to not fall
• 11:25
  Speaker 1: through the floor, right You don't. You don't want to
• 11:28
  Speaker 1: be My family invested in Inran, put their life savings
• 11:32
  Speaker 1: a member of my family in Iran, and when Inran exploded,
• 11:36
  Speaker 1: they ended up with absolutely nothing. So let me tell
• 11:44
  Speaker 1: you about a personal lesson that I learned. As I
• 11:48
  Speaker 1: always say, don't do things emotionally. I had exited a
• 11:53
  Speaker 1: deal and wanted to put some money into the market,
• 11:58
  Speaker 1: but really it was a savings that count disguised as
• 12:02
  Speaker 1: a market investment. I didn't need it to go up.
• 12:05
  Speaker 1: I just needed to be safe to not go down.
• 12:09
  Speaker 1: And so I'm just gonna pick a number. I invested
• 12:13
  Speaker 1: three point five million dollars, give or take. The timing
• 12:17
  Speaker 1: was the first quarter of twenty twenty two. Within three months,
• 12:23
  Speaker 1: I had lost about five hundred thousand dollars on a
• 12:27
  Speaker 1: three point fifty five million dollar basis, and that didn't
• 12:31
  Speaker 1: feel good. And my census it was going to go
• 12:36
  Speaker 1: down some more. The market was, I mean, there was
• 12:39
  Speaker 1: no place to hide, like everything. Interest rates were going up,
• 12:42
  Speaker 1: and you know, the market was just not in a
• 12:46
  Speaker 1: good place. And so I told my people to go
• 12:50
  Speaker 1: to cash. I don't mean literally cash, but treasury bills.
• 12:54
  Speaker 1: And I don't regret that in that decision, because my
• 13:01
  Speaker 1: goal was just to protect that little nest egg and
• 13:06
  Speaker 1: other things, you know, other things going on to the places.
• 13:08
  Speaker 1: But that was just like an emergency pullst trap, you know,
• 13:13
  Speaker 1: fun like you know, all the gold when everything goes bad,
• 13:16
  Speaker 1: that's there. And I just didn't want it touched. So
• 13:21
  Speaker 1: when it went down, that was again to my strategy. Now,
• 13:25
  Speaker 1: if I was, you know, in hindsight, maybe I should
• 13:29
  Speaker 1: have just invested in treasury bills to begin with. But
• 13:34
  Speaker 1: because here's what came next was I didn't factor in.
• 13:37
  Speaker 1: I'm sorry, I did factor in the downside, but I
• 13:39
  Speaker 1: didn't make peace with it. So what I now know
• 13:45
  Speaker 1: is if I had stayed with that investment, it would
• 13:47
  Speaker 1: have gone down another two hudred and fifty thousand dollars.
• 13:49
  Speaker 1: It would have gone down a total of seven hundred
• 13:51
  Speaker 1: and fifty thousand dollars against a three and a half
• 13:52
  Speaker 1: million dollar basis within a year of putting that money in.
• 13:57
  Speaker 1: But if I had done nothing, because I've invested in
• 14:01
  Speaker 1: my in very stable, very good stuff, very you know,
• 14:05
  Speaker 1: traditional conservative boring, if I had done nothing and just
• 14:09
  Speaker 1: left it there within two years, two years, within eighteen months, actually,
• 14:16
  Speaker 1: it would have recovered the seven to fifty that was
• 14:20
  Speaker 1: lost and made another seven to fifty, seven hundred and
• 14:24
  Speaker 1: fifty thousand dollars, So it corrected, It went down seven
• 14:28
  Speaker 1: hundred two thousand dollars, corrected one point five million, if
• 14:33
  Speaker 1: I had just done nothing, right, So lesson learned, which
• 14:40
  Speaker 1: was my own lesson, don't freak out, don't panic. Now
• 14:43
  Speaker 1: I'm being a little hyperbolic because if I had put
• 14:49
  Speaker 1: two million dollars in an investment acount, or two and
• 14:51
  Speaker 1: a half million dollars in an investment account in let's
• 14:54
  Speaker 1: say two thousand, and it had run up to three
• 14:58
  Speaker 1: point five million dollars and then I lost five hundred
• 15:05
  Speaker 1: thousand dollars or seven hun fifty thousand dollars, I would
• 15:08
  Speaker 1: just let it ride because it's you know, are basically
• 15:12
  Speaker 1: playing with profits, playing with capital gains as they call it.
• 15:15
  Speaker 1: But this was house money. So just depends where your
• 15:19
  Speaker 1: psyche is, to depend where your system. But typically I'll say,
• 15:22
  Speaker 1: if you've invested, well, leave it alone. Now. Down cycles
• 15:30
  Speaker 1: are not new. America survived wars depressions ninety eleven, two
• 15:35
  Speaker 1: thousand and eight, which is mortgage crisis COVID. The question
• 15:40
  Speaker 1: is not whether storms come right. The question is are
• 15:44
  Speaker 1: you built for weather? Today? I want to talk about
• 15:52
  Speaker 1: three things, how to protect yourself, how to survive, and
• 15:55
  Speaker 1: how to position yourself to thrive while others freeze. Part one,
• 16:01
  Speaker 1: Protect your liquidity, cash is oxygen. What what did I
• 16:06
  Speaker 1: just tell you. What's the story I just told you
• 16:09
  Speaker 1: about myself. You know, supposedly the financial literacy you know,
• 16:13
  Speaker 1: leader creative policy for the federal government of the three
• 16:16
  Speaker 1: US I've worked for three US presidents, created policy for
• 16:19
  Speaker 1: financial literacy under President Bush and President Obama. You know,
• 16:25
  Speaker 1: this is my this is my jam. But I still
• 16:30
  Speaker 1: made an investment that wasn't perfect, uh, but the but
• 16:34
  Speaker 1: I stayed consistent with my objective, which was cash. I
• 16:39
  Speaker 1: got other things through real estate and business ventures and
• 16:42
  Speaker 1: technology and all. I got all kinds of things going on, right,
• 16:45
  Speaker 1: it's a bond of it. But I wanted something I
• 16:48
  Speaker 1: could grab a hold of tomorrow cash. And I was
• 16:53
  Speaker 1: willing to lose on return in order to retain access
• 16:58
  Speaker 1: to cash. Because when things go south of the border,
• 17:03
  Speaker 1: anything that's liquid freezes up and you cannot access it.
• 17:07
  Speaker 1: So anything that's flaky, any flaky investment, any flaky whatever,
• 17:13
  Speaker 1: it just locks up. If you're flaky, you'll find your
• 17:17
  Speaker 1: line of credit freezes up. I've had situations where, going back,
• 17:23
  Speaker 1: you know, the two thousand and eight crisis, I had
• 17:26
  Speaker 1: a line of credit that's to say, it's five hundred
• 17:27
  Speaker 1: thousand dollars I had, you know, had access to that
• 17:31
  Speaker 1: line that's say, three hundred and fifty thousand dollars, and
• 17:35
  Speaker 1: sat one hundred and fifty thousand dollars to play with.
• 17:38
  Speaker 1: I thought that two thousand and eight crisis hit and
• 17:41
  Speaker 1: I look up to my bank statement and the new
• 17:44
  Speaker 1: limit is three hundred and fifty thousand dollars. I'm going
• 17:48
  Speaker 1: that has to be a mistake. But it wasn't a mistake.
• 17:52
  Speaker 1: The bank didn't call me, they didn't communicate, They didn't
• 17:54
  Speaker 1: they did, you know, they they were just nervous. They
• 17:57
  Speaker 1: weren't nervous about me. They're nervous about the world markets.
• 18:01
  Speaker 1: And I just wasn't, you know, on the top of
• 18:03
  Speaker 1: their in two thousand and eight. I want him on
• 18:05
  Speaker 1: the top of their client you know, we're completely comfortable
• 18:09
  Speaker 1: lists so versus canceling me, which they could have done,
• 18:12
  Speaker 1: and that would have been nice. They would they could
• 18:14
  Speaker 1: have called the loan. I'm sure they could have found
• 18:16
  Speaker 1: some you know, funky reason to call the line of
• 18:19
  Speaker 1: credit or just review my financials right at you know,
• 18:24
  Speaker 1: at a moment's notice and cite some problem. But they did.
• 18:27
  Speaker 1: They were dignified about it, but essentially they said, you know,
• 18:30
  Speaker 1: don't don't borrow anymore, you know, so versus having a
• 18:33
  Speaker 1: cushion of one hundred to two thousand dollars in an instant,
• 18:36
  Speaker 1: I found I was at my limit. So that that
• 18:39
  Speaker 1: was a very powerful lesson. I've got lessons that go
• 18:43
  Speaker 1: back eons and I've learned all of them. You need
• 18:46
  Speaker 1: to tell me twice, right, So cash is oxygen, build
• 18:51
  Speaker 1: or rebuild six months of reserves. Cash reserves a minimum
• 18:57
  Speaker 1: of three if you're starting of scratch, So you want
• 19:01
  Speaker 1: three months ideally, where if you don't work, and let's
• 19:06
  Speaker 1: say you make, you know, three thousand dollars a month,
• 19:10
  Speaker 1: you want cash reserves of nine thousand dollars minimum. Now
• 19:14
  Speaker 1: I know you're saying I can't do that, John, and
• 19:17
  Speaker 1: you're right, most Americans don't have nine thousand dollars cash.
• 19:19
  Speaker 1: But I want you to be creative. When I say
• 19:22
  Speaker 1: cash reserves, I mean cash availability. So credit card cash,
• 19:27
  Speaker 1: credit card savings accounts, stock, you can access to a
• 19:32
  Speaker 1: margin account or have you if you have to use
• 19:34
  Speaker 1: to sell it, emergency access to four oh one K.
• 19:38
  Speaker 1: I don't really recommend you factor that in, but you
• 19:42
  Speaker 1: you should never you should just want to touch your
• 19:44
  Speaker 1: fore k. Ever, But you want to know that you
• 19:48
  Speaker 1: got three to six months worth of cash in timas
• 19:51
  Speaker 1: if in fact a storm comes, stop lifestyle inflation spending immediately.
• 19:58
  Speaker 1: All the bling, all the player, player, all the drama
• 20:02
  Speaker 1: has to go. That that party is over. It wasn't
• 20:05
  Speaker 1: worth it when it was going. That party is definitely
• 20:08
  Speaker 1: over five hundred dollars one thousand dollars bottles at some
• 20:11
  Speaker 1: funky club. No, just go to the store and get,
• 20:14
  Speaker 1: you know, twenty five dollars bottle out of the out
• 20:17
  Speaker 1: of the cabinet and take your butt home. Don't get
• 20:21
  Speaker 1: don't go to the expensive coffee shop and spend twenty
• 20:23
  Speaker 1: five dollars for a latte. Go get your carrot machine
• 20:26
  Speaker 1: for one hundred and twenty five dollars and make as
• 20:28
  Speaker 1: much latte as you like. This is no time to
• 20:32
  Speaker 1: be profiling and flossing. No ego spending delayed big liabilities
• 20:39
  Speaker 1: unless they are strategic at uncertain times. Optionality is wealth.
• 20:46
  Speaker 1: Let me give you an example of this. This is
• 20:49
  Speaker 1: career optionality. So a friend of mine in New York City,
• 20:53
  Speaker 1: high fashion executive on the sales side, brilliant, talented, all
• 20:59
  Speaker 1: that stuf of you know, putting numbers on the board
• 21:02
  Speaker 1: ran into a situation at an employer and they parted.
• 21:06
  Speaker 1: Waste is a high end employer. And so this person
• 21:10
  Speaker 1: decided at this moment they were going to travel the
• 21:14
  Speaker 1: world and they were going to you know, I don't know,
• 21:17
  Speaker 1: I forget what thing, to write a book, and they
• 21:19
  Speaker 1: were going to you know, start a business and you know,
• 21:26
  Speaker 1: all the stuff that they've ever wanted to do. They
• 21:28
  Speaker 1: were just going to do all that stuff that moment.
• 21:31
  Speaker 1: And this was in twenty early twenty twenty five, in
• 21:36
  Speaker 1: the middle of all this growing unheaval and political drama.
• 21:40
  Speaker 1: And this person happens to be a person of color.
• 21:42
  Speaker 1: By the ways, to be full disclosure, full context, black female.
• 21:46
  Speaker 1: So black females lost three hundred thousand plus jobs. And
• 21:49
  Speaker 1: this lady had just lost her job and she was
• 21:54
  Speaker 1: going to go live her best life. And she asked me.
• 21:57
  Speaker 1: I would never have asked given her advice unless she
• 21:59
  Speaker 1: asked me. My mother always said, don't offer advice because
• 22:02
  Speaker 1: of wise men don't need it. In fools don't listen.
• 22:05
  Speaker 1: But she asked me for my advice, and so I
• 22:08
  Speaker 1: gave it to her. Hide she's what do you mean,
• 22:11
  Speaker 1: I said, knock it off, stop doing all that stuff
• 22:13
  Speaker 1: you're doing. Go find you a place, a safe place
• 22:16
  Speaker 1: to hide. You want to find you a safe place
• 22:19
  Speaker 1: to hide based on your skill set, on a job
• 22:22
  Speaker 1: that you don't think you'll be removed from or disturbed by,
• 22:26
  Speaker 1: that will pay you your bills and your health insurance
• 22:28
  Speaker 1: and everything you need to live a dignified life for
• 22:30
  Speaker 1: about a year to eighteen months. This is no time
• 22:33
  Speaker 1: to be going out being Superman or jumping up jumping
• 22:36
  Speaker 1: and leaving tall buildings and jumping out of planes without
• 22:41
  Speaker 1: a parachute. And this is no time for you know,
• 22:45
  Speaker 1: unless you have a trust fund. You know, go find
• 22:49
  Speaker 1: a safe place to hide. She didn't like what I said.
• 22:51
  Speaker 1: Later on she told me that it offended her, but
• 22:55
  Speaker 1: she thought about it and she decided to take my advice.
• 23:00
  Speaker 1: And later she called and said, thank you. Right, that
• 23:04
  Speaker 1: person is probably listening to this podcast, so I didn't
• 23:06
  Speaker 1: you know I did. I'm not mentioning their name, but
• 23:08
  Speaker 1: they're probably smiling because they're now They are now living
• 23:11
  Speaker 1: their best life. They have a great job at a
• 23:13
  Speaker 1: new fashion house, doing what they what they are trained
• 23:17
  Speaker 1: to do, and they also have a uh blog that
• 23:24
  Speaker 1: they write on and they've got to I think a
• 23:26
  Speaker 1: podcast are doing and uh they're still living their their
• 23:30
  Speaker 1: best life. They're just doing it part time. That you're
• 23:32
  Speaker 1: nine to five financial five to nine, right, So this
• 23:36
  Speaker 1: is no time to be you know out here playing games.
• 23:39
  Speaker 1: Find a safe place to hide and go be you know,
• 23:43
  Speaker 1: wonder man, a wonder woman. Uh a little later. Protect
• 23:48
  Speaker 1: your credit score number two seven hundred credit scores UH
• 23:54
  Speaker 1: plus equals access your credit score is like you're you know,
• 23:59
  Speaker 1: it's a personal version of a corporate triple a bond
• 24:02
  Speaker 1: rating on Wall Street or for a nonprofit before start
• 24:06
  Speaker 1: showing down a data rating. That's what operation to Hope pass.
• 24:09
  Speaker 1: It's a pristine credit rating. And when you need it,
• 24:13
  Speaker 1: when you don't have the cash. And if you grew
• 24:15
  Speaker 1: up in an underserved neighborhood like I did, then good
• 24:18
  Speaker 1: debt is your form of capital. If you don't have equity,
• 24:22
  Speaker 1: trust fund, inheritance, insurance proceeds from this. You know a
• 24:29
  Speaker 1: mom and dad who hooked you up upon their passing away.
• 24:33
  Speaker 1: If you don't have one of those things going for you,
• 24:35
  Speaker 1: if you're not hit the lottery, then you probably are
• 24:38
  Speaker 1: going to use debt to try to fulfill your dreams.
• 24:42
  Speaker 1: Because you don't have other alternatives. That's what I did.
• 24:44
  Speaker 1: Just make sure it's good debt, cheap debt, flexible debt,
• 24:48
  Speaker 1: structured debt, and debt that's tied to something that appreciates
• 24:52
  Speaker 1: if you're going to apply it to something. But you
• 24:54
  Speaker 1: can't get that. Your credit is told from the flow up.
• 24:57
  Speaker 1: So make sure you have a seven hundred plus credit score,
• 25:00
  Speaker 1: because then the answer about you know, as long as
• 25:04
  Speaker 1: you're working good job under a hundred thousand dollars we're
• 25:07
  Speaker 1: talking about here, the answer is going to be yes,
• 25:09
  Speaker 1: the bank's gonna give you twenty thirty fifty thousand dollars
• 25:12
  Speaker 1: just because you're a great credit risk and you want that.
• 25:17
  Speaker 1: In particularly in tough times. Access equals power, power equals options.
• 25:24
  Speaker 1: In America, your credit score is your economic passport. So
• 25:29
  Speaker 1: here are your action steps. Pay everything on time. Keep utilization,
• 25:34
  Speaker 1: which is the percentage of the credit limit that you
• 25:37
  Speaker 1: access and you've used to charge something under thirty percent.
• 25:40
  Speaker 1: There's nothing that pops your credit score more than consumer
• 25:43
  Speaker 1: credit management of your utilization against your limit. So if
• 25:47
  Speaker 1: you have a limit of ten thousand dollars, you don't
• 25:49
  Speaker 1: want spend any more than three thousand dollars on that card.
• 25:52
  Speaker 1: And you don't believe me, go to talk to one
• 25:55
  Speaker 1: of my whole financial coaches. They we'll give you a
• 25:57
  Speaker 1: thousand dollars a freak coaching scholarship brought off the back.
• 26:01
  Speaker 1: Just to go to my team costs you nothing, and
• 26:04
  Speaker 1: they they'll they'll literally show you that the the the
• 26:07
  Speaker 1: number one way you move your credit score up is
• 26:10
  Speaker 1: to reduce consumer credit down. And sometimes it's just a
• 26:14
  Speaker 1: movement of a few hundred dollars will pop the credit score.
• 26:19
  Speaker 1: Versus even you have a consumer loan, you know, for
• 26:22
  Speaker 1: thirty thousand dollars for a car, or a mortgage loan
• 26:25
  Speaker 1: for six for six figures, that does not move. Paying
• 26:29
  Speaker 1: those on time or whatever. A paying those things down
• 26:31
  Speaker 1: does not move the needle or like moving consumer credit does.
• 26:34
  Speaker 1: Because it's completely unsecured, it's most at risk to the
• 26:39
  Speaker 1: bank or the issuer. And and when people get in
• 26:43
  Speaker 1: trouble with the first thing that they run up, so
• 26:44
  Speaker 1: people so and banks can't catch it, you know, by
• 26:47
  Speaker 1: till they lurture around. You've gone from three thousand dollars
• 26:49
  Speaker 1: limit to nine thousand dollars limit. And if you can't
• 26:52
  Speaker 1: pay it back, they got to write that off. So
• 26:53
  Speaker 1: they're very careful about who they give a credit limit to,
• 26:56
  Speaker 1: and they're very skintish about that whole situation. So if
• 27:00
  Speaker 1: you can keep it the utilization at a low level,
• 27:02
  Speaker 1: it shows that you are not desperate. So here's a
• 27:06
  Speaker 1: here's what a joke about banking have to be true.
• 27:09
  Speaker 1: A bank will lend you money or you can improve
• 27:11
  Speaker 1: you don't need it. Okay, it's a joke, but it's
• 27:14
  Speaker 1: pretty true. Don't close seasoned accounts. You don't need the account. Cool,
• 27:22
  Speaker 1: just leave it there. Why close it? You paid it
• 27:26
  Speaker 1: from ten thousand dollars to five thousand dollars to three
• 27:28
  Speaker 1: thousand dollars to one thousand dollars to zero. Fantastic, Good
• 27:32
  Speaker 1: on you, God bless you. I don't agree with the
• 27:35
  Speaker 1: folks who say you should close all your credit accounts. No, no, no.
• 27:38
  Speaker 1: If you've broke and pow it from and toe it
• 27:40
  Speaker 1: from the flow up, you need every option that you
• 27:42
  Speaker 1: can get. When you've been doing so much with so
• 27:44
  Speaker 1: little for so long, you can almost do anything with nothing.
• 27:46
  Speaker 1: You need every option that you can get. So if
• 27:48
  Speaker 1: you have a credit card, credit card with a ten
• 27:50
  Speaker 1: thousand dollars limit and you own zero on it. Guess
• 27:53
  Speaker 1: what that's capital. That's a reserve account. That's that cash
• 27:57
  Speaker 1: I was talking That's that three months I was talking
• 27:58
  Speaker 1: about you about earlier. Keep making that in them a
• 28:00
  Speaker 1: payment you know, you know, and keep that account open
• 28:04
  Speaker 1: because you may need it one these days. Don't use
• 28:07
  Speaker 1: it to go and spending spree. Don't use you know,
• 28:10
  Speaker 1: shopping therapy, but use it as part of your reserve arsenal.
• 28:17
  Speaker 1: Avoid emotional borrowing. You depress your distress. Okay, walk around
• 28:22
  Speaker 1: the block, you know, get some mayor get some sleep,
• 28:25
  Speaker 1: but don't get don't get. Don't get a shopping addiction.
• 28:31
  Speaker 1: So you can, you know, access information on your credit
• 28:37
  Speaker 1: score at Opera Shop's Financial Wellness Index. By the way,
• 28:41
  Speaker 1: you know, you tell me your zip code where you live,
• 28:43
  Speaker 1: I'll tell you your neighborhood and your environment around you,
• 28:46
  Speaker 1: and what that credit score is. Because if you live
• 28:48
  Speaker 1: in a five hundred credit score neighborhood you lived to
• 28:50
  Speaker 1: about sixty one years of age. You live in a
• 28:52
  Speaker 1: seven hundred credit cored neighborhood, typically fifteen minutes apart in
• 28:55
  Speaker 1: an urban community. By the way, you live to eighty
• 28:58
  Speaker 1: one years of age, So year difference fifteen minutes apart.
• 29:04
  Speaker 1: Not just on credit score obviously, but that's a trending
• 29:06
  Speaker 1: indicator that of hope, well being, belief, confidence, faith, joy.
• 29:11
  Speaker 1: It's you know, whether you believe, whether you believe you can't,
• 29:13
  Speaker 1: whether you believe you can, or whether you believe you can't.
• 29:15
  Speaker 1: You're right theory, and so it keeps saying who else
• 29:18
  Speaker 1: is a mindset? Right? So there's a difference between being
• 29:22
  Speaker 1: broken being poor, being broken economic being poor is a
• 29:25
  Speaker 1: disabling frame of mind, the press condition of your spirit.
• 29:28
  Speaker 1: You must vow never to be poor again. You need
• 29:30
  Speaker 1: to have the right mindset, and you need to have
• 29:32
  Speaker 1: the right environment. So if you hang around nine broke people,
• 29:34
  Speaker 1: you'll be the tenth. If you're living in a fire
• 29:36
  Speaker 1: in a credit scored neighborhood, you're living in a surviving mindset.
• 29:38
  Speaker 1: You need to get out that, or you need to
• 29:40
  Speaker 1: get your mindset so to a point where it doesn't
• 29:42
  Speaker 1: matter who's around you. But you need to focus on success.
• 29:46
  Speaker 1: And if you either change your mind or change your environment,
• 29:49
  Speaker 1: or change both. But if you're around depressed, distressed, desperate people,
• 29:56
  Speaker 1: unless your mentality is bulletproof, unless your mindset is bullet proven,
• 30:00
  Speaker 1: that yourself team's bulletproof. Don't be surprised, and if you
• 30:02
  Speaker 1: don't join them, so watch your environment. So protect number three,
• 30:08
  Speaker 1: protect your reputation and your relationships. I cannot stress this enough.
• 30:12
  Speaker 1: When I was coming up, it did not have inheritance,
• 30:14
  Speaker 1: it did not have a trust fund. I did not
• 30:16
  Speaker 1: have financial capital. I did not have equity of any sort.
• 30:20
  Speaker 1: So I had to rely on some debt capital. Yes,
• 30:24
  Speaker 1: debt is a form of capital and relationship capital. I
• 30:28
  Speaker 1: was a likable person. I got to know people. They
• 30:30
  Speaker 1: trusted me, and they then would invest with me, or
• 30:34
  Speaker 1: open doors for me, or introduce me to people. But
• 30:37
  Speaker 1: relationship capital became really important. So watch what you do
• 30:40
  Speaker 1: online please or hit three in the morning drunk, Please
• 30:44
  Speaker 1: watch your do your life because the internet is undefeated
• 30:47
  Speaker 1: and it lives on forever. Okay, so in uncertain times,
• 30:55
  Speaker 1: people hire who they trust. Capital flows to credibility, partnerships matter.
• 31:04
  Speaker 1: Your brand is recession resistant, if your character is intact.
• 31:09
  Speaker 1: Watch what you place online. Your employer, your partner, your
• 31:13
  Speaker 1: investors or potential thereofs are watching you. That's exactly the
• 31:18
  Speaker 1: first place you're going to go to see who you are.
• 31:23
  Speaker 1: When somebody meets you, they google search you or you
• 31:26
  Speaker 1: know whatever search engine that you use, and then they
• 31:29
  Speaker 1: go to your social media and they snoop on your life.
• 31:33
  Speaker 1: What are they going to see? Right? And if you're
• 31:37
  Speaker 1: a woman or a minority, or a person of color
• 31:39
  Speaker 1: or whatever, somebody who's not part of the political structure,
• 31:43
  Speaker 1: the power structure. Either you're white and working class or whatever,
• 31:47
  Speaker 1: white and middle class, but you're not part of the
• 31:48
  Speaker 1: power structure. You got enough problems, you got enough headwinds.
• 31:53
  Speaker 1: You don't need to add in the addition you know
• 31:55
  Speaker 1: to them. So you watch your watch your environment, and
• 32:03
  Speaker 1: watch your brand. I want to encourage you to over
• 32:08
  Speaker 1: communicate when don't wait if you're in trouble, don't wait
• 32:12
  Speaker 1: for your creditor to call you. You know, don't be
• 32:15
  Speaker 1: surprised when the one eight one hundred number calls say
• 32:17
  Speaker 1: what's that? You know what it is? You know you
• 32:19
  Speaker 1: didn't pay that bill, right, don't don't let it go
• 32:21
  Speaker 1: to voicemail. People don't like chasing you. It irritates them.
• 32:24
  Speaker 1: Call them. Don't waiting to call you. You know the
• 32:26
  Speaker 1: calls coming. Call them, Hey, this is Joe. This is
• 32:29
  Speaker 1: Joe Ann. I owe you some money. We're looking for you.
• 32:31
  Speaker 1: No I'm looking for you know, we want one hundred dollars. Well,
• 32:35
  Speaker 1: I don't have one hundred dollars, but I'm gonna give
• 32:36
  Speaker 1: you twenty dollars today. I'd like to work out of plant. Well,
• 32:39
  Speaker 1: we really like our hundred dollars. That's nice. I like
• 32:41
  Speaker 1: to go to the Pluto. I like to go to
• 32:42
  Speaker 1: the moon, right, I'd like to get the win the lottery.
• 32:45
  Speaker 1: None of that's working out for me. I got twenty bucks,
• 32:48
  Speaker 1: and I'll pay you twenty bucks every you know whatever,
• 32:51
  Speaker 1: six six weeks plus the every four weeks plus the
• 32:54
  Speaker 1: regular payment. And I'm gonna say yes. And they're gonna
• 32:57
  Speaker 1: go to their supervisor. They're gonna ask who called who
• 33:00
  Speaker 1: Oh they called us? Okay, good character. They got to
• 33:03
  Speaker 1: cut a deal with you, right, so uh And you
• 33:06
  Speaker 1: can cut deals, by the way in bad times. That's
• 33:08
  Speaker 1: maybe if I got time in this podcast where I'll finish,
• 33:11
  Speaker 1: I'll come back to that. But I bad debt, get
• 33:15
  Speaker 1: debts get written off pretty quickly on credit cards and
• 33:18
  Speaker 1: things like that. And I found that we are my
• 33:20
  Speaker 1: operation shop team. I guess I'm getting in this now,
• 33:22
  Speaker 1: my operational team. If something's written off and it's been
• 33:26
  Speaker 1: you know sold to a credit not a credit for
• 33:30
  Speaker 1: pairye disea. It's been been so to a bad debt company. Basically,
• 33:35
  Speaker 1: that bad debt company bought it for let's say five
• 33:38
  Speaker 1: cents on the dollar. Okay, so it was one hundred
• 33:40
  Speaker 1: dollars debt. They bought it for five for five bucks,
• 33:43
  Speaker 1: what do they want? They want to double their money.
• 33:45
  Speaker 1: They want ten bucks. And I'm probably give you a
• 33:47
  Speaker 1: bad example. This is this number is very low. But
• 33:50
  Speaker 1: let's say it's a thousand dollars bill. They bought it
• 33:52
  Speaker 1: for fifty bucks, they want a hundred bucks. They're gonna
• 33:54
  Speaker 1: they're gonna chase you and track you down and try
• 33:57
  Speaker 1: to find you. They can't. They're just gonna sit there
• 34:00
  Speaker 1: for a hope they get lucky and they trip on you.
• 34:02
  Speaker 1: But if you call them and shock them, which my
• 34:06
  Speaker 1: people do, and we say, look, we want to pay
• 34:08
  Speaker 1: this off. If we want one hundred bucks, and we
• 34:10
  Speaker 1: say no, no, we're going to pay you two hundred bucks,
• 34:12
  Speaker 1: Like why would you double pay me? Because and I
• 34:15
  Speaker 1: want to speak to your supervisor, tell me you did
• 34:16
  Speaker 1: a good job, because I want to make sure that
• 34:19
  Speaker 1: you're going to take this off her credit. And when
• 34:22
  Speaker 1: it shows up again. Because bad debts continue to show
• 34:25
  Speaker 1: up repeatedly on these databases. You're going to take it
• 34:27
  Speaker 1: off again and again and again. You give me a
• 34:29
  Speaker 1: letter writing and say that this is a resolved and
• 34:32
  Speaker 1: I'm gonna speak to your supervisor and commend you and
• 34:34
  Speaker 1: build a relationship with your supervisor in case you get
• 34:36
  Speaker 1: an attitude, or you quit, or you get amnesia, because
• 34:40
  Speaker 1: you've already made your commission on this deal, you won't
• 34:42
  Speaker 1: talk to me anymore. I can go to your supervisor,
• 34:44
  Speaker 1: who they're a supervisor because they're management material, and they're
• 34:47
  Speaker 1: going to keep their word they made to me, which
• 34:49
  Speaker 1: is yes, we will on our obligation and make sure
• 34:53
  Speaker 1: this is you know, taken off for the fifth time
• 34:56
  Speaker 1: off your credit report that pops your credit score thirty
• 34:58
  Speaker 1: points forty points. You do something like that, so you
• 35:02
  Speaker 1: olde one hundred, you old one thousand dollars, you pay
• 35:06
  Speaker 1: two hundred dollars. In this example, you got an eighty
• 35:08
  Speaker 1: percent discount and they got a two hundred percent profit.
• 35:10
  Speaker 1: Everybody won fair exchange is no robbery over communicate, deliver excellence.
• 35:17
  Speaker 1: Stay visible, don't hide, stay visible, got problems, stay visible.
• 35:24
  Speaker 1: People respect folks who can deal with their drama. Life
• 35:27
  Speaker 1: is ten percent what life does to you and not
• 35:29
  Speaker 1: even saying how you choose to respond to it. Everybody's
• 35:32
  Speaker 1: got problems. Everybody's had problems. It's not about having a problem,
• 35:36
  Speaker 1: it's about how you deal with it. You've had a problem,
• 35:38
  Speaker 1: You're not a problem. Don't become the problem. Don't don't
• 35:42
  Speaker 1: self manifest something by you know, beating yourself up about
• 35:46
  Speaker 1: something that's happening to everybody. Everybody's just struggling. They just
• 35:50
  Speaker 1: make it. They just trying to look like them that's
• 35:52
  Speaker 1: struggling here. Right, If you're just honest about it, and
• 35:56
  Speaker 1: you approach your creditors before they approach you, you're going
• 35:59
  Speaker 1: to be able to work out a situation. Just stay
• 36:02
  Speaker 1: visible and and stay leaned in to your own solution
• 36:10
  Speaker 1: surviving right. I want you to reduce fixed expenses. Freedom
• 36:15
  Speaker 1: lives in your margin, right, renegotiate everything, refinand strategically if appropriate,
• 36:24
  Speaker 1: you know, take ten credit cards and try to roll
• 36:27
  Speaker 1: them into one. You can roll ten credit cards into
• 36:30
  Speaker 1: one credit facility that frees up the back and then
• 36:33
  Speaker 1: don't close the credit cards you just paid off that
• 36:36
  Speaker 1: frees up that credit availability on those other cards, which
• 36:39
  Speaker 1: will pop your credit score and also give you more
• 36:40
  Speaker 1: access to capital. And the term loan is going to
• 36:43
  Speaker 1: be much cheaper than the credit cards that you're paying off,
• 36:46
  Speaker 1: by the way, so try to re refinance credit cards
• 36:48
  Speaker 1: into a term loan. In this example, if you own
• 36:50
  Speaker 1: a car and you don't awn any money on it,
• 36:53
  Speaker 1: go get and you have accepted on a credit score,
• 36:56
  Speaker 1: Go get your bank to give you a modest loan. Yes,
• 36:58
  Speaker 1: and get them a loan on against that You head
• 37:00
  Speaker 1: a loan in the car. If it's a If it's
• 37:02
  Speaker 1: a car, I'm talking talking about beat it. I'm talking
• 37:04
  Speaker 1: about a car you know that's reasonably modern and in
• 37:07
  Speaker 1: good shape. You can get a typically a loan against
• 37:10
  Speaker 1: that car. Uh, and don't leverage of the hilt. Get
• 37:14
  Speaker 1: a modest loan in that car. Uh. It becomes a
• 37:17
  Speaker 1: temporary asset for you. UH. In tough times, kill unused subscriptions.
• 37:22
  Speaker 1: This is a big one. You go to your phone
• 37:24
  Speaker 1: and there's all kinds of stuff that all are renewing monthly, weekly, monthly, yearly. Uh.
• 37:30
  Speaker 1: It's killing your bank account and you've forgotten about it. Uh.
• 37:34
  Speaker 1: Go kill unwanted subscriptions. I'm guilty of that now I
• 37:38
  Speaker 1: do it once a quarter. It's killed underwanted subscriptions. And
• 37:42
  Speaker 1: I hate wasting money. And I can't tell you many
• 37:45
  Speaker 1: times I found subscriptions that I had no use of it.
• 37:47
  Speaker 1: I signed up three years ago. And these folks are
• 37:50
  Speaker 1: just caking because they're just cashing my check because I'm
• 37:54
  Speaker 1: too lazy, uh to manage my subscription portfolio. Simplify housing
• 38:03
  Speaker 1: if necessary. There's no shame in that game. Just simplify, Simplify, simple,
• 38:07
  Speaker 1: simplify and reset. Uh. Look, survival is not failure, it's wisdom.
• 38:14
  Speaker 1: It's just they all come to an experiment, you know,
• 38:17
  Speaker 1: a failure, just an outcome to experiment. That's all it is.
• 38:20
  Speaker 1: You did you know? You know you didn't make a mistake.
• 38:21
  Speaker 1: You're not a mistake. You just made one. Next item
• 38:24
  Speaker 1: for wreaking bos after storms. I take no for vitamins.
• 38:27
  Speaker 1: I mean success is going from failure to failure without
• 38:30
  Speaker 1: loss of enthusiasms. Never give up your optimism, diversify your
• 38:34
  Speaker 1: income streams. Right, one paycheck is vulnerability. Okay. I want
• 38:45
  Speaker 1: you to develop a skill based income. So something that
• 38:50
  Speaker 1: you can do that can't be aied out right, find
• 38:54
  Speaker 1: that thing. Become a notary. If you're if you're if
• 38:58
  Speaker 1: you can do it, get it trade like become a
• 39:00
  Speaker 1: plumber or electrician. Find something that you love or don't
• 39:05
  Speaker 1: utterly dislike, and that is a unique skill that's needed necessary.
• 39:11
  Speaker 1: It can't be removed completely by AI. And you can
• 39:14
  Speaker 1: do it, and you can get certified within a reasonable
• 39:16
  Speaker 1: period of time. And that's your backup plan and might
• 39:20
  Speaker 1: becoming your backup plan, might become your primary plan. Who
• 39:22
  Speaker 1: knows advisory consulting digital products, invest in learning AI tools,
• 39:31
  Speaker 1: get AI certified. I just told a young lady I
• 39:35
  Speaker 1: just met at the front desk of the hotel I
• 39:38
  Speaker 1: checked in. She was going into healthcare, and I told
• 39:40
  Speaker 1: her go get her AI credentials or an AI certificate
• 39:45
  Speaker 1: and added to healthcare, which is a growing industry, and
• 39:48
  Speaker 1: she'll differentiate herself amongst other employer applicants. To the employer
• 39:53
  Speaker 1: that she's going to, she goes right to the front
• 39:55
  Speaker 1: of the line because she's got the healthcare credentials she
• 39:58
  Speaker 1: does out of school, and she's got the aidentials. She
• 40:00
  Speaker 1: hadn't even thought about it, but the light came on instantly.
• 40:02
  Speaker 1: She said, she's gonna get that going next week. And
• 40:07
  Speaker 1: you should too. Your job's are not gonna be taken
• 40:11
  Speaker 1: by AI. Your job's gonna be taken by somebody who
• 40:14
  Speaker 1: can use AI. That's another podcast for another time. And
• 40:18
  Speaker 1: some of you know I'm the co chair of the
• 40:19
  Speaker 1: AI Ethics Council with Sam Autman, and we've launched Hope
• 40:22
  Speaker 1: AI at Operation to Hope in AI LP three with
• 40:24
  Speaker 1: Georgia State University. I'm all in on AI. I'm not
• 40:28
  Speaker 1: scared of it. I'm not using fifty times a day.
• 40:30
  Speaker 1: I love it, but I'm gonna master it. It's not
• 40:32
  Speaker 1: gonna it's not gonna master me. It's not gonna own me.
• 40:36
  Speaker 1: The new job security is skill security, all right. I
• 40:39
  Speaker 1: want you to control your emotions. Psychology of downturns is
• 40:45
  Speaker 1: really important. I've been talking about this this entire podcast episode. Basically,
• 40:49
  Speaker 1: fear causes bad decisions, bottom line, and the worst thing
• 40:53
  Speaker 1: to fear is fear itself. A bastar angel young just
• 40:55
  Speaker 1: told me that earlier today. That's the first thing he
• 40:58
  Speaker 1: learned as a young man is a is the worst
• 41:01
  Speaker 1: fear is fear itself. I found ninety nine times out
• 41:04
  Speaker 1: of one hundred that whatever I was afraid of or
• 41:06
  Speaker 1: concerned about, it wasn't as bad as the fear of
• 41:10
  Speaker 1: that thing. The reality was never as bad, never been
• 41:14
  Speaker 1: close as bad as of how much I had guilted
• 41:17
  Speaker 1: up in my own head. Right, so just release all
• 41:19
  Speaker 1: that comparison creates pressure. Don't stop comparing yourself Jojo Pooky,
• 41:25
  Speaker 1: Damn Boo boo, whoever they broke out here flossing right,
• 41:31
  Speaker 1: you know they're six square block celebrity who cares? Stop
• 41:34
  Speaker 1: comparing yourself to somebody. Become reasonably comfortable in your own skin.
• 41:37
  Speaker 1: This is time for you to grow inside of your
• 41:39
  Speaker 1: own wisdom. God made you unique. Why would you want
• 41:44
  Speaker 1: to compare yourself to somebody else. It's going to again
• 41:46
  Speaker 1: cause you to try to impress somebody you don't even
• 41:49
  Speaker 1: want to be like with money you don't have. Media
• 41:52
  Speaker 1: amplifies panic, right, Recessions are as much psychological events as
• 41:58
  Speaker 1: financial ones. Going public on Wall Street is is a narrative.
• 42:05
  Speaker 1: It's storytelling, right, So going up it's storytelling, you know,
• 42:09
  Speaker 1: telling a story about this company and why it's going public.
• 42:11
  Speaker 1: A lot of the stock is worth well going down
• 42:13
  Speaker 1: storytelling too. Markets are highly well, they are I don't
• 42:20
  Speaker 1: want to say they're emotional, but markets these days are
• 42:25
  Speaker 1: built a lot on sentiment, Mark, I mean the financial markets. Well, heck,
• 42:30
  Speaker 1: I mentioned one beginning this podcast, which is which is uh.
• 42:34
  Speaker 1: I'm not picking on cryptocurrency, but it's just the easiest
• 42:36
  Speaker 1: one to pick on because it's complete sentiment, it's complete emotion.
• 42:40
  Speaker 1: But there are a lot of stocks that are not
• 42:42
  Speaker 1: just meme stocks, but there are a lot of stocks
• 42:44
  Speaker 1: that are just overpriced, over valued because people feel a
• 42:47
  Speaker 1: certain way about them. There's no fundamentals, no economics that
• 42:51
  Speaker 1: support it. In one of day is may it may?
• 42:53
  Speaker 1: I believe can crashing back down to earth. Assets go
• 43:00
  Speaker 1: on sale in tough times, and if you've got a
• 43:03
  Speaker 1: good credit score and some cash, you could be the
• 43:05
  Speaker 1: beneficiary of somebody else's wolves. He didn't create their wolves.
• 43:08
  Speaker 1: I mean, I'm not saying you'd be a bottom fisher
• 43:10
  Speaker 1: or not in any way suggesting you should be looking
• 43:15
  Speaker 1: for somebody else's pain. But if somebody's having pain, well
• 43:18
  Speaker 1: shouldn't you be the nice person that helps him out
• 43:21
  Speaker 1: and maybe benefits from it. It's gonna happen whether you
• 43:25
  Speaker 1: like it or not. It's happening. You have no control
• 43:26
  Speaker 1: of it. In somebody else's life. Businesses become affordable real
• 43:31
  Speaker 1: estate softens, talent becomes available. I mean, I'm hiring folks
• 43:36
  Speaker 1: right now because I've got cash, an opportunity to growing company.
• 43:38
  Speaker 1: I hiring people I couldn't hire a few years ago.
• 43:43
  Speaker 1: Only invest for strength. That's what I've been telling you
• 43:45
  Speaker 1: this whole podcast. No reckless speculation. I've been telling you
• 43:48
  Speaker 1: this entire podcast. Right, you don't hurt. You don't hurt
• 43:56
  Speaker 1: if you're strong. If you're strong, it's just rush it off, right.
• 44:01
  Speaker 1: And you don't hunt in a storm unless you have
• 44:04
  Speaker 1: shelter first. And we're all hunters. If you're listening to
• 44:08
  Speaker 1: this podcast, we're all hunters. I want you invest in
• 44:10
  Speaker 1: yourself aggressively. Certifications, AI literacy, financial literacy, communication skills. I mean,
• 44:19
  Speaker 1: financial literacy is a new sexy all day, all night,
• 44:23
  Speaker 1: and the civil rights issue in this generation. Communication skills.
• 44:26
  Speaker 1: I've talked about that already. And it's little things like
• 44:31
  Speaker 1: don't say beca. I saw this young man who works
• 44:34
  Speaker 1: for what is his mother works for our family, and
• 44:39
  Speaker 1: this young man is really smart, and he came in
• 44:40
  Speaker 1: the house saying hello, and hey doing uncle John Mingrad,
• 44:45
  Speaker 1: how are you? Uh? He said something like beca. He
• 44:51
  Speaker 1: asked another question, And I said, why do you like
• 44:53
  Speaker 1: that thing said? Because, I said, don't want to stop,
• 44:55
  Speaker 1: because because when you're black, you know, and of course
• 44:59
  Speaker 1: it's this advice goes to everybody. But if you're black,
• 45:02
  Speaker 1: you're born on probation in America. You have me twice
• 45:04
  Speaker 1: as smart, twice as intelligent, you know, twice early, stap
• 45:06
  Speaker 1: twice lately, twice as good. And by the way, haters
• 45:09
  Speaker 1: make you better. I don't mind that. And so I
• 45:12
  Speaker 1: I naturally articulate every word, put a pause between the words.
• 45:18
  Speaker 1: It communicates your strength. Watch your health, health as wealth.
• 45:29
  Speaker 1: Your mind is the one asset that that appreciates in
• 45:33
  Speaker 1: any marketplace. Right, so mark, watch your your mindset, watch
• 45:38
  Speaker 1: your your your health, your health set, keep it all
• 45:42
  Speaker 1: set because of the really the asset that is the
• 45:45
  Speaker 1: most valuable in your life. So I want you to
• 45:50
  Speaker 1: think like an owner, not a victim. Right, you can't
• 45:53
  Speaker 1: be a thermometer reacting to the temperature. You can be, right,
• 46:01
  Speaker 1: but I'm saying you can't be You shouldn't be a
• 46:03
  Speaker 1: thermometer reacting to the temperature. You know, you can be
• 46:07
  Speaker 1: a thermostat setting it. I want you to think about equity.
• 46:14
  Speaker 1: Equity thinking, ownership out thinking in bad and tough times,
• 46:19
  Speaker 1: ownership mindset. Buying businesses from retiring boomers, baby boomers who
• 46:26
  Speaker 1: just like, I'm tired of this, life's tough, life's too complicated.
• 46:30
  Speaker 1: I want to go sit on the beach somewhere cool.
• 46:32
  Speaker 1: You've got a lot of energy. You're thirty years old,
• 46:34
  Speaker 1: forty years old, fifty years old, you're ready to get
• 46:36
  Speaker 1: to it. By the way people become millionaires to their
• 46:38
  Speaker 1: late fifties, I have my testament to that mid to
• 46:41
  Speaker 1: late fifties. Yeah, the mid fifties for me a multi millionaire.
• 46:45
  Speaker 1: And so just you know, you don't get tired. And
• 46:50
  Speaker 1: when other people are tired, again, take advantage of there.
• 46:54
  Speaker 1: That's their problem. They're tired. You ain't have nothing to
• 46:56
  Speaker 1: do with it. But you got energy, and that's a
• 46:59
  Speaker 1: trade you trade they're tired, and then desire for a
• 47:01
  Speaker 1: check at a discount for your energy and your ability
• 47:04
  Speaker 1: to get in there and hustle in that business and
• 47:07
  Speaker 1: grow it and build equity. Buy businesses from retiring boomers. Acquire,
• 47:13
  Speaker 1: don't just apply. You can apply for the job, or
• 47:18
  Speaker 1: you can say, will you just sell me the business?
• 47:22
  Speaker 1: I did that several times by the way, there's one
• 47:26
  Speaker 1: hundred train dollars wealth transfer that's gonna happen in the
• 47:28
  Speaker 1: next ten to fifteen years. I've done a podcast on that.
• 47:32
  Speaker 1: Go back and listen to that podcast. It ties back
• 47:34
  Speaker 1: to the baby boomer comment. I've already made all right,
• 47:38
  Speaker 1: we're almost at time here, So you never want to
• 47:40
  Speaker 1: be the old guy in the club. So before you
• 47:42
  Speaker 1: kick me out of this podcast, I'm gonna leave, right,
• 47:45
  Speaker 1: So let's wrap this up. This has been fun. It's
• 47:48
  Speaker 1: been fun. It's been a fun podcast. I don't know
• 47:49
  Speaker 1: if you enjoyed it, but I have. Look' let's zoom
• 47:55
  Speaker 1: out for a minute, and why you should not be
• 47:56
  Speaker 1: too freaked out. America still has the rule of law.
• 48:00
  Speaker 1: Crazy you know, off the chain. America still has the
• 48:04
  Speaker 1: rule of law. We're still the flight to quality for
• 48:07
  Speaker 1: every investor in the world. People in Russia, people in
• 48:10
  Speaker 1: China and North Korea, Iran talking all kind of mess
• 48:13
  Speaker 1: about America. But after the cameras go off, Guess where
• 48:15
  Speaker 1: they're trying to invest their money. Guess what currency they're
• 48:19
  Speaker 1: trying to take to own. Guess where the gold is
• 48:22
  Speaker 1: they're trying to get from. Right, Guess where the stocks
• 48:24
  Speaker 1: that they're trying to buy, but the real estate they're
• 48:27
  Speaker 1: trying to buy, the businesses they're trying to buy America.
• 48:32
  Speaker 1: America has strong capital markets, innovative innovation, leadership, demographic diversity,
• 48:40
  Speaker 1: which is a strength. Benning against America historically been a
• 48:43
  Speaker 1: losing trade. Right, there's three things that have always gone
• 48:46
  Speaker 1: up GDP, Gross domestic product, real estate values. Talking about
• 48:50
  Speaker 1: the values, yes, they go up. There is a recession.
• 48:52
  Speaker 1: We may be entering some version of a partial recession,
• 48:56
  Speaker 1: or have recessionary elements and recessionary segments of the market.
• 49:00
  Speaker 1: Now the next three you know, two three years or so,
• 49:03
  Speaker 1: which is why I'm giving you the signal bearer of
• 49:05
  Speaker 1: this podcast. But so that means that markets go up.
• 49:10
  Speaker 1: There there's a recession, they received received and then what happens.
• 49:15
  Speaker 1: It corrects above the line every time. So that's why
• 49:17
  Speaker 1: I said earlier, if I just if I had an
• 49:19
  Speaker 1: investor mindset versus a safe versus a saver's mindset on
• 49:23
  Speaker 1: that money I put in that account, I would just
• 49:25
  Speaker 1: let it ride and it would have come back. It
• 49:27
  Speaker 1: did come back and doubled it. I'd have doubled the
• 49:30
  Speaker 1: money on on on a down investment betting against yourself.
• 49:39
  Speaker 1: That's fatal, right, So don't argue with yourself, don't don't
• 49:43
  Speaker 1: get into don't don't, don't question good common sense even
• 49:47
  Speaker 1: when other people are not talking sense other people, people
• 49:50
  Speaker 1: around with somebody giving you advice, considering the source. If
• 49:52
  Speaker 1: somebody's telling you not to do something or do something
• 49:54
  Speaker 1: and they're broke, you probably shouldn't listen to it. Right. Uh,
• 49:57
  Speaker 1: somebody tell you to sell your house and they don't
• 49:59
  Speaker 1: own one, probably shouldn't listen to it. I want you
• 50:03
  Speaker 1: to build local strength. Ninety percent of the GDP gross
• 50:06
  Speaker 1: domestic product in this country grow. Yeah, the income of
• 50:10
  Speaker 1: this country comes from cities, not not not the national
• 50:13
  Speaker 1: government of national economy from cities. So help your mayor,
• 50:17
  Speaker 1: help your school board, you know, volunteer, you with your
• 50:19
  Speaker 1: counsel person, you know, volunteer, join the local committee. That's
• 50:23
  Speaker 1: how I guess, guess how I built my first relationship capital.
• 50:25
  Speaker 1: I wouldn't join committee as a mayor, Tom Bradley and
• 50:29
  Speaker 1: other small city mayors. That was a big city mayor,
• 50:31
  Speaker 1: Mayor of La Mayor Tom Bradley joint committees, and I
• 50:34
  Speaker 1: found myself right next to people in the committee meetings
• 50:36
  Speaker 1: I was trying to get in their front door to
• 50:38
  Speaker 1: their business and couldn't, but they're right there next to me.
• 50:40
  Speaker 1: Volunteered the city government. Successful people like doing civic leadership.
• 50:44
  Speaker 1: So uh, it's the right thing to do to volunteer
• 50:48
  Speaker 1: in your local school and this and that, you know,
• 50:50
  Speaker 1: and just in government. But also it's it's it's it's
• 50:53
  Speaker 1: good smart for your brand and for your for for you,
• 50:56
  Speaker 1: building the kind of credibility of somebody you can call
• 50:59
  Speaker 1: who might be able to sell your business or help
• 51:01
  Speaker 1: you buy business or partner in something. Strengthen your communities,
• 51:06
  Speaker 1: build your level strength in the community. Improve your household credit. Okay,
• 51:11
  Speaker 1: move from consumption to ownership. If if we look, if
• 51:17
  Speaker 1: we uplift the bottom third of society, we stabilize the
• 51:20
  Speaker 1: whole economy. And that's my new book coming out, Captain
• 51:23
  Speaker 1: for all statches about you know, the bottom third is
• 51:26
  Speaker 1: about the whole economy. But that is certainly one of
• 51:29
  Speaker 1: the messages. Here's some recession rules, okay, five recession rules.
• 51:35
  Speaker 1: Cash is oxygen number one, number two, credit is power
• 51:39
  Speaker 1: number three, Skills beat titles number four, Calm beats panic
• 51:44
  Speaker 1: number five. Owners when long term h storms don't last
• 51:49
  Speaker 1: forever people, but strong people do. Protect yourself, survive wisely,
• 51:56
  Speaker 1: and when the sun comes out, be positioned is an
• 52:01
  Speaker 1: is an old African saying. It's something like, you know,
• 52:06
  Speaker 1: when the sun comes up, you know, the lion is
• 52:12
  Speaker 1: looking for the gazelle, you know, and uh and the
• 52:17
  Speaker 1: gazelle is you know, he got his eye out for
• 52:21
  Speaker 1: the lion. Something like that. But one thing's for sure,
• 52:24
  Speaker 1: whether you're the lion of the gazelle when the sun
• 52:26
  Speaker 1: comes up, you better be running. I'm sure I didn't
• 52:29
  Speaker 1: get that story exactly right, but you get the point right.
• 52:32
  Speaker 1: You just gotta you gotta, you gotta be leaned into
• 52:34
  Speaker 1: your life. You gotta be positioned to win. And you
• 52:37
  Speaker 1: can't be lazy or you'll be a prey. If you're
• 52:39
  Speaker 1: not at the table, you're gonna be the you know
• 52:41
  Speaker 1: if you're not. If you're not at the table, you're
• 52:43
  Speaker 1: on the menu. Uh So, look, this is John O'Briant.
• 52:48
  Speaker 1: I love you. I want you to win. This is
• 52:51
  Speaker 1: not just about money when I told you this last
• 52:55
  Speaker 1: forty five minutes, It's about dignity. It's about ownership, it's
• 52:59
  Speaker 1: about a building. It's about agency in your life. It's
• 53:01
  Speaker 1: about building a life that can withstand any weather. In
• 53:06
  Speaker 1: any storm, I know you can win because I did it,
• 53:13
  Speaker 1: and I know you can do it too. So let's
• 53:15
  Speaker 1: go get at it. When I see you in airports
• 53:20
  Speaker 1: and grocery stores, wherever you, wherever you find me, let
• 53:22
  Speaker 1: me know whether the advice I gave you is working
• 53:25
  Speaker 1: for you. Remember what Warren Buffett said, when people are afraid,
• 53:29
  Speaker 1: be greedy. When people are greedy, be afraid, right, But
• 53:33
  Speaker 1: what I want you to do is to be ready.
• 53:36
  Speaker 1: John O'Brien, Money and Wealth, I'm out. Oh, by the way,
• 53:41
  Speaker 1: I want you to vote for the podcast for that
• 53:43
  Speaker 1: we just wanted it. We were nominated for the NAACP
• 53:46
  Speaker 1: Image Award. Thank you very much. Now go vote for
• 53:51
  Speaker 1: this podcast. Even though Michelle Obama is in the same category.
• 53:54
  Speaker 1: I know you want to vote for her. I won't
• 53:56
  Speaker 1: feel bad as you won't. I might vote for her. Actually, no, no,
• 54:00
  Speaker 1: I gotta booth my podcast. Hop over my podcast now.
• 54:03
  Speaker 1: Officially I want you to vothe my podcast, but I
• 54:05
  Speaker 1: understand you both thinks a lot. Money and Wealth with
• 54:09
  Speaker 1: John O'Brien is a production of the Black Effect Podcast Network.
• 54:13
  Speaker 1: For more podcasts from the Black Effect Podcast Network, visit
• 54:17
  Speaker 1: the iHeartRadio app, Apple podcasts, or wherever you listen to
• 54:21
  Speaker 1: your favorite shows.