Flip and Danny share four ways to avoid losing money: stop making emotional decisions, don't sell when markets drop, trust the data and stay disciplined, and leave your investments alone. They recommend using illiquid investments or group decisions to protect yourself from panic.
Hey, everybody. Flip and Danny here, founders of the Freedom Real Estate Group family of companies. And welcome to another episode of our.
Podcast called Freedom through Passive Income.
That's right. And today's episode is called how to Avoid Losing Money.
This is a good one.
Yeah, don't give it to Flippy.
All right, there's only four. So this is going to be maybe one of our shortest episodes yet.
No, I have on record the shortest episode when I did that episode by.
Myself, so you'd be done already anyway.
Okay.
Number one, prevent emotional decisions. So one way to do this is to invest in investments that are not liquid, meaning the investment itself is preventing you from being emotional because you can't pull it in and out. When you get emotional about where the market's going or what's going, it's just. It's there. So you leave it alone, and it gives you the return. Because history has proven over time you should be good if you're not emotional, because it's solid. Yeah. And so decision by committee is another idea. So if you are in a more liquid investment and you do have the opportunity to be emotional, and you know that you are emotional, then if that was me, I would go, hey, Flip. And in order to keep me from being emotional about these investments, maybe we do decision by committee. So every time I get fearful, I'm gonna come to you and go, should we take our money? And I'll freak out on you and you can go, danny, it's fine. Over time, it's gonna. Just leave it alone. Pull your jets. Exactly. So that's number one, prevent emotional decisions.
Number two is don't sell in a down market. Just wait it out. Just patience, young little grasshopper.
It's very. So like when the market go in real estate. Right. So if the market tanked right now, we wouldn't run out and sell our house. Right, Right. We'd sit, wait and wait.
Yep. Because it's going to come back.
It's going to come back. Okay. Number three, trust the data. Even if you're not a numbers person, just trust history. Historically, markets go up and down over time. Returns are good. And if you are disciplined, this goes back to number one. If you're disciplined, you're going to be okay. If you're not disciplined, maybe the decision by committee is for you, or maybe the stick it in an investment where you're not allowed to touch it. So you just stop yourself from actually being emotional. So trust the data.
Easy, easy. Set it and forget it.
That's number four.
Number four, set it and forget it. A famed economist said, your money is like a bar of soap. The more you handle it, the less you have. I love that line, which is very similar to a famed real estate investor said, your money is like a bar of soap. The more Flip handles it, the less you have.
Oh my gosh. For our relationship, that might be true. He has a limited spending budget.
20%, apparently. I'm waiting to get that 20%. I'm at like 2 right now. Make sure you head on over to our website, freedomcapitalinvestments.com and join our investor club. Now, this is an area where you can get more information about what we're doing as a company and the whatnot. But we're still on Facebook, the special group on Facebook and on LinkedIn. That's where the team's at. So if you got any questions, head on over there as well. If you're on YouTube, make sure you hit that subscribe button right there. But we hope that you enjoyed this episode and we end all of our episodes with Invest Smart Live Happy.
Bye, everybody.
Nothing on this show should be considered specific personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions and information on this show are not guaranteed. All investment strategies have the potential for profit or loss, y'.
All. Sam.
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