Preparing for a financially secure future

Summary

In today's volatile economic climate, financial literacy is critical for a secure future. This discussion highlights the current trends of rising interest rates, soaring inflation, and widespread layoffs impacting various sectors, urging listeners to evaluate their financial preparedness. It emphasizes the necessity of financial planning against potential downturns and encourages individuals to develop income-generating assets to ensure economic resilience. Through real-world examples and expert insights, it stresses the importance of adopting a proactive approach to personal finance to safeguard against inevitable economic fluctuations.

Highlights

• Interest rates and inflation are rising, causing stock market woes. 📊
• House affordability is plummeting due to increased interest rates. 🏠
• Tech and other industries face large-scale layoffs. 💻
• Consumer confidence is dwindling, affecting spending and overall economic health. 📉
• Income versus expenses: Learning to navigate financial responsibilities is key. 💰

Key Takeaways

• Understand the impact of current economic trends like inflation and layoffs on your financial situation. 📈
• Stock markets and consumer spending are portraying a volatile economy; stay informed! 📰
• Rising interest rates and housing affordability are major concerns today. 🏡
• Layoffs are happening across all sectors, making financial preparedness more crucial than ever. 💼
• Ensure you aren't caught off-guard by the rollercoaster of economic recession cycles. 🎢

Overview

In a world where stock markets are fluctuating and interest rates are skyrocketing, it's crucial to understand the fundamentals of economic trends and how they affect personal finance. With homes becoming less affordable and consumer goods prices rising, the need for financial literacy has never been greater. The laying off trend across all sectors underscores the instability in employment, making it imperative for individuals to plan for financial resiliency.

Robert Kiyosaki famously stated that real education starts after school, highlighting the importance of understanding financial trends over academic knowledge. With looming talks of a recession and fluctuating debt levels, individuals are urged to scrutinize their financial plans, understanding the critical role of financial planning in a volatile economy. The reality of economic cycles means the next downturn is inevitable, and preparedness is key.

This engaging discussion offers insights into bridging income gaps and strategizing for future security. Creating income-generating assets instead of relying solely on active income is emphasized as a method to ensure financial stability. Participants are encouraged to seek out financial education and align themselves with successful mentors while actively working to build a sustainable economic future. Such proactive measures can provide the peace of mind necessary to enjoy life uninhibited by financial worries.

Chapters

• 00:00 - 01:00: Importance of Financial Literacy and Economic Trends The chapter discusses the importance of financial literacy and staying informed about economic trends. It emphasizes that understanding current economic conditions is crucial for everyone, not just professionals. The chapter notes that stock markets are not just down but are crashing, and interest rates are on the rise, highlighting the volatility and shifts in the financial landscape.
• 01:00 - 02:30: Impact of Inflation and Interest Rates on Housing and Employment The chapter discusses the effects of rising inflation and interest rates on housing and employment. It highlights how homes that were affordable in the past have now become unaffordable due to nearly doubling interest rates. As a result, current homeowners find it challenging to repurchase similarly priced homes. Additionally, prices for consumer goods, including essential items like food and gas, have surged, making living expenses higher overall. The discussion underscores that housing, in particular, has become unattainable for many individuals who have purchased homes recently.
• 02:30 - 04:30: Layoffs Across Sectors and Their Implications The chapter discusses the ongoing layoffs occurring across various sectors and their broader implications. It emphasizes the importance of being aware of these realities, how they affect individuals, and the necessity of taking basic preparatory steps. Additionally, the transcript references a graph illustrating inflation rates from 1990 to 2022 to provide context.
• 04:30 - 06:00: Consumer Debt and Its Growth Across Age Groups The chapter discusses consumer debt and its growth across different age groups. It reflects on past economic conditions, highlighting how inflation was high in the 90s, then significantly decreased over the past two decades, and has recently increased to high levels again. The transcript emphasizes that rising inflation leads to government intervention in the form of increased interest rates to reduce spending. Additionally, there is a concern regarding the economy potentially heading into a recession, though the outcome remains uncertain.
• 06:00 - 08:30: Financial Education Beyond School and Life Planning The chapter discusses the unpredictable nature of economic factors such as inflation and how they affect both consumers and businesses. It highlights that increased inflation leads to higher prices, impacting the operations of companies by increasing their costs. To manage these rising costs and maintain their operations, companies may resort to layoffs. The chapter emphasizes understanding these economic dynamics beyond formal education in financial literacy to better plan for one's life.
• 08:30 - 12:00: The Reality of Income vs. Expenses and Financial Challenges The chapter explores the reality of managing high expenses and financial challenges faced by companies and individuals. It discusses recent news headlines featuring major companies like Twitter, Facebook, Amazon, and Google, highlighting their financial decisions and adaptations. Twitter initially allowed permanent work from home but later tied it to no pay, Facebook, and Amazon announced large-scale layoffs, with Amazon doubling their layoff numbers from 10,000 to 20,000. Google was also mentioned in the context of financial strategies and decisions made by Sundar Pichai. The chapter underscores the significant impact of financial pressures on employment and organizational strategies.
• 12:00 - 18:00: Economic Recession Cycles and Financial Preparedness The chapter discusses the looming economic recession and the cycle of financial preparedness required to mitigate its impacts. There are concerns about significant job losses expected in 2023, particularly in the tech industry. Evidence of this trend is visible in the layoff numbers from 2022, which show an alarming increase, escalating from 600 layoffs in January to 59,000 by November. The discourse suggests a need for strategic planning and readiness to confront these challenges.
• 18:00 - 23:00: Importance of Financial Planning Over Leisure Activities This chapter discusses the significance of prioritizing financial planning over leisure activities. It begins with the context of widespread layoffs across various sectors, not just in technology but also in big corporations like Pepsi. The narrative underscores how, despite assumptions that certain industries like beverage or electric cars are recession-proof, they are also subject to economic challenges and must make tough decisions such as layoffs. The central theme advocates for the importance of financial planning in times of economic uncertainty instead of prioritizing leisure activities, as no industry is entirely secure from market fluctuations.
• 23:00 - 27:00: Balancing Time and Money for a Peaceful Lifestyle The chapter discusses the importance of balancing time and money to achieve a peaceful lifestyle. It also highlights the situation of Nautilus, a company that makes exercise machines, which has faced significant layoffs. Nautilus, formerly known as Nauty Track, is undergoing its fifth round of job cuts, affecting 300 positions, and has reduced its workforce by 50% in less than a year. This scenario underscores the challenges of maintaining stability in both personal finance and professional environments.
• 27:00 - 31:00: Questioning Financial Status and Planning for the Future The chapter discusses the recent wave of layoffs, highlighting the striking janitors as an example. It acknowledges the high costs associated with employing software engineers, suggesting it makes financial sense for companies to lay off high-income professionals. However, when companies reach the point of laying off janitors, it reflects deeper financial challenges within industries, specifically media and entertainment. This signals a broader trend of layoffs happening across various sectors, prompting a reflection on the underlying causes and financial planning for the future.
• 31:00 - 38:00: Building Assets and Income Strategies The chapter 'Building Assets and Income Strategies' explores the challenges posed by the current economic climate, emphasizing high interest rates and inflation. These factors increase the costs of running a business and affect consumer demand. The transcript highlights that consumer spending serves as an index to evaluate confidence in purchasing and investing. It explains that when the Consumer Price Index increases, consumer confidence typically decreases, affecting their willingness to spend.
• 38:00 - 45:00: Actionable Steps for Financial Stability In the chapter titled 'Actionable Steps for Financial Stability', the speaker discusses a longitudinal analysis of price trends from 1992 to 2021, highlighting a dramatic price increase from 275 to nearly 300 within just one year. The speaker uses a graph to illustrate these changes, comparing the sharp uptick to climbing Mount Everest. The analysis also speculates on future price movements by extrapolating the data to 2022.
• 45:00 - 51:00: Education and Networking for Financial Growth This chapter discusses how education and networking can contribute to financial growth. It highlights the rising consumer debt across various age groups, specifically focusing on individuals aged 18 to 60. The chapter utilizes graphs to illustrate the significant increase in consumer debt over the past 40 years, noting that debt levels which were once between 1 to 1.5 trillion dollars have considerably increased. The chapter emphasizes the importance of understanding these trends as a part of managing personal finance and leveraging education and networking to foster financial growth.
• 51:00 - 52:00: Conclusion and Call to Financial Preparedness This chapter focuses on the significant increase in debt among individuals aged 30 to 60, highlighting that total debt has surged from 1 trillion to over 3 trillion dollars in the past two decades. It discusses the various contributors to this debt, including mortgages, car loans, and credit cards, and raises the critical question of who will bear the burden of repaying this enormous debt. The chapter emphasizes the importance of financial preparedness in light of these escalating debt levels.

Preparing for a financially secure future Transcription

• 00:00 - 00:30 so what is the first and most important thing in the premise of what our discussion today is right it's about financial literacy right most important thing that we all have to do as professionals as whoever we are is to understand are you prepared for tomorrow right and it starts with what are the current economic Trends what is happening around us okay uh well stock markets are down I won't say down they are crashing okay uh interest rates are rising okay uh the
• 00:30 - 01:00 homes we bought yesterday are not affordable anymore if you bought a home in the last six months you probably cannot go by the same home again because interest rates have almost doubled prices are rising for consumer goods okay and you know everything is expensive you eat gas be it milk be it anything right uh flight tickets travel everything is expensive right housing has practically become unaffordable okay uh most people like I said if you bought a home in the last year you probably
• 01:00 - 01:30 cannot even refinance and buy it at the new rate right uh layoffs are happening across all sectors right these are some realities of what is happening around us today right and I want you to kind of think about some of these things and see how all of this affects you and how you should take a few basic steps to prepare yourself for that right this graph just kind of shows the inflation okay now if you look at this is the inflation rate from 1990 to 2022
• 01:30 - 02:00 right and we used to have high inflation in the 90s but in the last 20 years from literally no inflation to look at we have right now at one of the highest inflation levels now when that happens what happens uh the the government has to raise the interest rates to curb that inflation so so they can curb the spending right and and it's uh you know we're talking about oh economy is heading into a recession right I don't know if it's going to
• 02:00 - 02:30 happen not happen right those are some big things that some probably I and you don't control but you have to understand that what does that increasing increasing inflation do just increasing inflation basically raises the price for everything right for consumers for companies for businesses right now what happens when cost of business goes up for companies right it is what happens there is layoffs right because these companies have to operate they cannot have low income and
• 02:30 - 03:00 high expense they have to manage it right these are some news articles you are hearing every day today right uh you know Twitter you know this was the first company to say you can have permanent work from home now they are like you can have permanent work from home with no pay okay uh you look at Facebook large skill layoffs you look at Amazon you know they initially said they're going to lay off 10 000 people now they said no no it's going to be 20 000 people right uh you look at Google they said you know Sundar pichai had made a statement there's
• 03:00 - 03:30 going to be bloodbath on the streets if things keep going like this and just two days back he made a statement that he cannot say if we are not going to have layoffs in Google in 2023 right and this is just a report which says significant job loss is expected in 2023. now if you look at what is already happening in 2022 this is a graph of all the tech layoffs from January to November 2022 right in January it was 600 layoffs in November it is 59
• 03:30 - 04:00 000 layoffs right this probably does not include every little company but includes a lot of big names I you know it's crazy right now layoffs are not just happening in Tech sector they are happening in every sector you know you would think oh Pepsi everybody would want to drink Pepsi whether it is recession inflation I want my Pepsi canadi right but she's laying off people right uh uh EV everybody thinks electric car
• 04:00 - 04:30 salinitis is having a layoff right uh they are there again you know you look at naughty track everybody you would think oh it's everybody understands importance of exercising so at least they will continue to exercise but not a track is which makes exercise machines as having earlier now this is a very interesting one 300 jobs in fifth round so what happened in first round second round third round fourth round let me tell you not your track is right now 50 percent of where they started as employees just less than a year back they have cut down 50 percent
• 04:30 - 05:00 okay uh you look at Twitter means janitors are striking after being laid off with no warning because I know software Engineers are expensive deals so it makes sense to lay off software Engineers because they are making good six figure incomes but when companies come down to laying of janitors you realize where what they are dealing with okay major layoffs hit the media and entertain an entertainment industry right so if you look at its happening across the board right and guys why is it all happening because
• 05:00 - 05:30 interest rates inflation is very high cost of running business is high uh it's crazy right now what is happening and then the consumer demand has reduced what is consumer spending consumer spending is how it's it's an index that tracks okay how much confidence do I have in making in investing in in uh buying things and if the Consumer Price Index goes up then my confidence in buying goes down right
• 05:30 - 06:00 now this chart here is for last 20 last 30 years 1992 to 2021 as you see prices have been increasing right so people are you know but then what happened in just last one year it shot up from 275 to almost 300. if I extrapolate this this data is only till 2021. if I extrapolate this data to 2022 here is what this graph would look like you're like climbing Mount Everest
• 06:00 - 06:30 no wonder economy is thinking and people are like hey can I afford this because everything is becoming more and more unaffordable right Consumer Debt right if you look at these are different graphs for different age groups from age groups 18 to 29 to 50 to 60. guys you look at these three graphs here age group 30 to 39 50 to 59 40 to 49 40 years back the debt was in the range of 1 to 1.5 trillion dollars
• 06:30 - 07:00 today that debt has jumped to more than three trillion dollars so in the age group across age group 30 to 60. it is the debt has almost more than doubled from 1 trillion to almost three four trillions in the last 20 years right who's going to pay this debt now that debt is a you know it's mortgage there's cars credit cards and guys I'll tell you but that's what is happening right why guys you know all of this is happening
• 07:00 - 07:30 and we got to be prepared for all of this right now here is something Robert Kiyosaki said your education begins when you leave a school see when I see all these economic trends I forget all the things I learned in computer science I am more worried about and guys you've got to be educated more about these Financial Trends that's why we are talking to you here tonight for you to understand it's not about what should I do not do you've got to understand where you are headed some people are so simple so clueless
• 07:30 - 08:00 about where things are that they don't even realize you got to educate yourself financially because your real education starts as you get out of school not when you're in school right because it's a real world right now this is your typical income growth curve right if you work for first few years your income goes up very fast but then it tapers off income is simple making 100K 150k is easy but whatever you are making to add an extra 50k to it is not easy now here
• 08:00 - 08:30 is your expenses your expenses hey you get married you've got kids you got a bigger car you need a bigger apartment you need a bigger home you need and your expenses keep going up now some people this is a disaster in America these expenses for most people are up here way above the income line that's why there is debt and I showed you that debt Rising like crazy but even if you are the best you would say you know what I'm not going to spend anything I don't have you can manage your finances but now you're trying to run this
• 08:30 - 09:00 Financial track where you're trying to keep the two lines like a railway track I'll tell you something a very scary thing guys a lot of people given their finances and their lack of financial understanding are actually sleeping on a financial Railway track they don't realize there's a train that is going to come and they will get wiped out you are trying to balance this economic Trend but this is not enough because you know what can happen tomorrow you heard
• 09:00 - 09:30 all those layoffs and everything else this is real now I don't wish upon that to happen for anybody I hope none of you are affected by any of that that's great but you know what you could lose your source of income tomorrow because something happened your income could drop now when your income drops unfortunately your expenses don't drop now if your expenses don't drop what are you going to do how are you going to manage it what are you gonna do you're gonna move from a big apartment
• 09:30 - 10:00 to a small apartment you're going to tell your kids not we're not going to go eat out as much you're going to tell your kids we can't go for a vacation you're going to tell your wife we need to sell our car what are you going to do guys you gotta wake up right but that's the reality right this is what is possible and this is what is happening because that could happen right now you may say oh pankaj is talking about all of these things and he's trying to scare us no no I'm not trying to scare you guys let me tell you the good news all these
• 10:00 - 10:30 layoffs and everything will all go away in two three years everything is going to be absolutely fine okay so don't worry about all this but you know here is the bad news economic recession happens every few years this chart shows all the recession since 1945 and this number in the blue shows when a recession happened how long it lasted where a recession happened how long it lasted and in every recession it stocks
• 10:30 - 11:00 assets dropped in value to 20 30 40 right you look at every two three years five years something is happening 1969 17 73 after 75 it happened in 80 after 80 it happened in 90 after 19 happened into so 10 years Gap now we are in last recession happened in 2007-2009 you know what it has been 13 years in this chart above there is no gap of 13 years
• 11:00 - 11:30 so I'm not saying things will not go over right it will be all fixed but it will happen again and when that happens again where will you be the question is are you prepared for the next one right are you prepared for it because if you don't take care of your family's financial future no one else will an unfortunate fact is a lot of people spend a lot more time planning on a vacation planning on a trip planning on
• 11:30 - 12:00 a skiing trip planning on a barbecue planning on a family get together then they actually sit down to do it to even do their financial planning right now you know why people don't do financial planning because they they know it's not easy it's very difficult it's like some of us right you have a coroner in your house where you know you keep dumping a lot of stuff like it's a storage room kind of thing and you know when you think about cleaning that storage room it shakes you up because you know man there's too much mess there it's not going to be an easy task
• 12:00 - 12:30 right here you know there is no solution to the task right so what do you do you ignore that discussion financial planning you ignore that discussion and my purpose today is to help you think about that guys because it's very important right because nothing else may change in next 10 years but you know what one thing will is guaranteed for sure ten years later when this happens again for five years later when this happens again you will be five years more older
• 12:30 - 13:00 you'll be 10 years more older you'll have a little more financial responsibility and I hope you are prepared for it right because if you're not prepared for it you're going to mess up your son right now now you know you some people they don't have time but they have money why do you think I'm a high flying corporate professional some people they're the time but they don't have the money you may think I'm a student or I don't I'm supposed to make money but I have time man but then there are professionals who have neither time nor money
• 13:00 - 13:30 now you may think you are in category one or category two but here's the fact guys most people if you have a job and you're trading time for money to make money you will neither have time you will neither have money that's where most professionals are and it's not a pretty picture now lifestyle comes from having time and money and Financial Security right all these things you say anything whether it's travel whether it's buying a nice car whether it's spending time with loved ones whether it is taking vacations
• 13:30 - 14:00 whether it's just enjoying an evening everything needs peace of mind and peace of mind only comes when you have both time and both money right like lifestyle has two words life comes from time style comes from money if you don't have either of them you will never have a lifestyle right and a lot of people they are thinking about peace of mind but all they have is when they don't have time and they don't have money they don't have Financial Security you don't have peace of mind you have pieces of mind right and I want you to think about it
• 14:00 - 14:30 right how are you going to manage this right right what is your really what is your real goal in life what do you want to accomplish are you going to compromise everything or are you going to figure out a way to increase your income you've got to figure out right you you can either be in a compromised state or you can be in an accomplishment state right but it's not an easy Journey but you've got to ask that question to yourself you have to ask yourself where you are versus where you want to be right A lot of people they know where they are they know they cannot be
• 14:30 - 15:00 anywhere else and they accept that as their fate but you know what guys have you ever entered a airplane and you see there's some people sitting in the business class some people sitting in the economy class right have you seen some people driving nice cars some people driving living in big homes some people traveling in vacations not having to husband and wife both not having to go to a job not having to send kids to a daycare you
• 15:00 - 15:30 know what what is special about you you think everybody else got lucky no these people did something different financially they did something otherwise they would not be there right it is hopefully they're not taking vacations on credit cards okay hopefully not right right but there is people who have created financial success but it happens by first you knowing where you are versus where you want it right now here's some checkpoints don't get scared now a lot of us these are brutal
• 15:30 - 16:00 questions and you've got to ask yourself understand is I am sound financially do you have emergency funds for six months to a year if no money comes do you have money to run your expenses if you lose your active source of income and if your husband and wife and both of you are working if one of the job can you maintain your lifestyle right you know there's a yes and no answer to everything right and and I want you to mentally
• 16:00 - 16:30 think about that right do you have a monthly budget a lot of people again do not budget because they know there is a negative cash flow and its area to budget right so you don't budget it's at least one less headache right but that one less headache leaves you on that Railway track financially where something happens tomorrow you will get run over right so I this is what I'm talking to you all guys I want you to really think about your finances and figure out how you're going to change some things right do you
• 16:30 - 17:00 have a positive cash flow and regular savings now the best way to find out savings is if you've been working for 10 years look at your bank balance and see how much you have in your savings account if in the last 10 years you saved this much or very little then what makes you think without making any change you will suddenly save a whole lot in the next 10 years you gotta think about these things I'm not saying any of this to scare you but I want you to think these are real problems this is
• 17:00 - 17:30 more important problem than where should I go for skiing this winter this is a more important problem than you thinking about when should I go to India I need to visit my friend this is a more important problem than you thinking about should I take a vacation right do you have debt have you already paid for things you bought do you rent or own now if you don't own then you have to think about when will I buy a home and when will I pay off that 30-year mortgage if you already bought a home
• 17:30 - 18:00 then you have to think is it an asset or a liability right because it's you know an asset is an asset only when it's creating income to a positive cash flow if you're if if you have rented if you have a house and you are living in that and you're paying a mortgage payment and your job goes away you can't make mortgage payment right in 2008 2009 you saw so many house foreclosures why because people were living in homes
• 18:00 - 18:30 they couldn't afford their home was a liability right kids education what is your plan for kids education well that may not be immediate problem but five years ten years if you have kids they'll go to college education is not simple game we have two kids who just finished College but you know it took two hundred three hundred thousand dollars each kid just in their education and ten years from now it would not be 300 000 it'll be five hundred thousand dollars do you have a plan or you're planning
• 18:30 - 19:00 that your kids will start with a student loan right saving an investment that's not even a question when you think about all these problems right retirement planning guys even if you want to work till 65 chances are you live till 85. even if you don't lose a job you will make money till 65 but you got to pay your bills till 85. what is your plan from 65 to 85 do you have a plan right these are scary questions but guys I want you all to think about these
• 19:00 - 19:30 questions before you think about your next vacation next barbecue next potluck next movie right now I'm not saying get these are you know if you become cognizant of this you can try to find a solution right you have to think what is your reference point right right am I because everybody else has a problem so I have a problem it's like oh you know it's like me jumping from an airplane and clapping because somebody else jumped from airplane without a parachute before I did
• 19:30 - 20:00 well do you realize if you jumped without a parachute when he hits the ground he might hit the ground first he may die before you but that doesn't make it any safer for you what is your reference point oh my friends they all have the same situation do you want to live your friend's life right guys you are a product of your environment what does your environment look like right what do you read who do you listen to he got around people who are valuing Excellence now Excellence not in terms of making money excellence in terms of relationships excellence in terms of
• 20:00 - 20:30 spirituality excellence in terms of health excellence in terms of everything right as a matter of fact when somebody is stressed out about money those are the marriages and relationships that end up into divorce and financial struggles right how many times have you heard of stories where friends got into a fight because they had a money problem but if nobody has a money problem then why would you mess up a relationship right so Excellence right growth mindset are you just stuck in where you are or you want to move forward you want to
• 20:30 - 21:00 create a bigger impact do you have a purpose in life right uh personal Integrity right these were the things we valued in our community we were around people who stood for personal Integrity who had focus on giving not just giving money but giving their time giving right when I'm talking to you all hey I don't get paid for talking to you okay but I put a lot more energy in everything that you are I'm sharing right now because we will be value giving somebody gave it to us we saw that as an important value hey
• 21:00 - 21:30 you may not have a hundred thousand dollars to give out but can you give out five percent can you give her twenty dollars to the next homeless guy you meet or you're like oh I got bigger things to worry about guys giving right we saw that in this community accountability being good for your word being a team player right you know hey together everybody achieves more so we work together to accomplish some goals and dreams for each one of us but at my job that was not the goal there was a project if it happens it's good if it doesn't happen you know you
• 21:30 - 22:00 and then fun right we like to have fun right we when we got around this community we liked it was not just about money it was about Excellence it was about integrity it was about character it was about being a team player having fun and building a community of like-minded people who respected excellence in every part of life right whether it's their marriages whether it's their relationships whether it's their spirituality whether it's everything right now
• 22:00 - 22:30 if you're born poor it's not your mistake right but you've got to figure out guys you cannot let a 30 40 year of Life go by because you are comparing yourself to the wrong people right so where do you start right I'm going to give you some points on some basic Common Sense things you gotta do sit down if you're a husband and wife sit down review your financial goals needs where and and when will you need money how will you get it where will it come
• 22:30 - 23:00 from what are your goals right create an emergency savings account okay uh understand and follow a zero based budget okay enforce a positive cash flow don't buy things you don't need don't use credit card everywhere understand how you're going to manage your finances okay uh have a good life insurance policy guys you know sometimes you're like oh pankaj but I've been working my boss loves me I half the company gets laid off I'm not
• 23:00 - 23:30 going to get laid off what happens what if something happens to your health what if the unexpected happens what will happen to your wife and kid was that when I looked at my family picture if I crossed myself out what did that picture look like again I'm not saying you can solve that problem at least have a good life insurance policy they say that don't put all your eggs in one basket so think about doing something to fix this right now this is a good start but none of this it will help you not get into too much of a mess
• 23:30 - 24:00 but it doesn't solve the problem you know why because job is a short-term solution to a long-term problem right like I said job is because it's 65 if you have a good job and if nothing happens to you you're going to live till 85 how do you bridge the gap I'm sure all of you are thankful for your job I'm very happy that none of you hopefully are affected by everything that's going on in the economy but at some point you would not want to work you may not be able to work what are you going to do right so what is the
• 24:00 - 24:30 solution right solution is very simple guys you've got to rather than thinking about anything else you got to think about developing income generating assets not taking loans not just throwing money into stock Investments and Bitcoin and things which you cannot predict but develop income generating Assets Now what is this asset what is an asset okay so everybody knows income right income is what money comes to me then there's expenses right everybody has to spend some money
• 24:30 - 25:00 then there is income you make active income I go to work I make money I get a paycheck and then because expenses so income my active income brings the money into income expenses gets the money out right now your because you know your income cannot change so your strategy is keep the expenses less than income remember I picked the picture I showed you right but in that picture what if your income goes away you've got a mess right so what do you do right before you
• 25:00 - 25:30 do something else be careful about this another dangerous thing called liabilities liability is an expense that cannot be getting rid of easily right hey I buy a big home I cannot afford right you created a liability right a lot of two income families in Bay Area have bought homes that they cannot pay for if they lose one income you've created a liability but you're going to work all your life right now liabilities you're paying for liability so money is
• 25:30 - 26:00 going out so what do you do right you got to start thinking about a strategy strategy of not just worrying about how to keep expenses low that income but a strategy of how I'm going to increase my income right some people the strategy of increasing income is oh wife works husband also works two incomes but that strategy still doesn't take you too far because taxation kills you I'm not going to talk about taxation here but taxation kills you okay so your
• 26:00 - 26:30 strategy is to increase income using assets okay now what do you do when you create assets and they create income you got a happy picture thanks to being around people who were in life where we wanted to be we got some guidance we made some changes we started focusing on developing assets right now that asset creates an income now what can you do don't suddenly quit your job strengthen that asset now you have that
• 26:30 - 27:00 extra money pay off the liabilities remove the liabilities now you have bigger assets your bigger assets you have a good income now you can take care of your expenses through your income you know what you can get rid of active income because you have income coming from assets that's what we developed we developed assets that created an income stream that would go beyond age 65. but you have to understand rice
• 27:00 - 27:30 again think of how you are going to develop that asset because if you don't develop that asset you got a very big problem at hand okay I hope you're not thinking uh of living on Social Security because that gap of 65 to 85 is a very dangerous Gap right again it's not me Warren Buffet says if
• 27:30 - 28:00 you don't find a way to make money while you sleep you will work until you die right so you got to figure that out right now we talk about the four quadrants Robert Kiyosaki talks about this all the time right and you all know this very few right but you guys you got to focus on how you are going to create asset based income because if you are on the active income side there is no Leverage 100 of income comes from One Source if that one source something happens
• 28:00 - 28:30 party is over so you gotta think again I'm not saying do this do that but you got to think about something you gotta do something it's a problem to be solved right the first step I very strongly encourage all of you guys I gave you some checkpoints on budgeting cash flow paying off your debt Health life insurance do those things but then sit down as husband and wife if you're a single sit down yourself take somebody's help find out how you are going to create a
• 28:30 - 29:00 passive source of income because if you don't do that guys I'll tell you it will be a big problem okay now how do you reach your financial goals right right the simplest way first of all is once you create this how do you create this passive source of income right how do you get to that asset cash flow right you got to educate yourself what I'm talking to you is you are
• 29:00 - 29:30 sleeping on a financial railroad track if you're not going to educate yourself and do something about it it's going to be a disaster start doing it something about it now right how do you do it first thing is to educate yourself about these things right some people they're like oh I don't know about all this well too bad right study business Trends what is happening around you guys economies companies
• 29:30 - 30:00 uh jobs is changing if you think I've got a safe job economy could change Concepts could change things could change right so study business Trends right get access to some of these things take a lot of time to get access to people who are in life where you want to be right it could be anybody you can find anybody who will help you if you have an uncle or a aunt who knows how to help you get financial success please beg to them to guide you but get somebody who has experience
• 30:00 - 30:30 who is in life where you want to be who's willing to help you who has vested interest in your success who's going to help you take their help because you are now going to figure this all out on yourself all right now you gotta but you gotta get access to those people right and you've got to be willing to make some changes you got to be willing to do some work you've got to be willing to take some action a lot of times a lot of us we have heard of a lot of things I just talked about here and there but you have done nothing about it
• 30:30 - 31:00 and if you've done nothing about it nothing's going to happen so you gotta take a call to action because if it's not then when you look at that picture the moment the active income stops you got a big problem right so guys I hope next time when a pankaj or somebody else talks to you and says ask you this question are you prepared for tomorrow you should be able to say yes I am prepared for tomorrow