The Millionaire Mindset For Investing - Millionaire Mindset In Times of Crisis
Transcript of a YouTube installment (Issue #7) of 'Millionaire Mindset' by Jess Yacker offering practical guidance for handling money during a crisis. Jess presents four core principles—1) define an objective (preserve vs grow), 2) educate yourself and seek expert advice, 3) manage money (emergency reserve, JAR allocation), and 4) consider control over investments (owning/starting businesses vs passive stocks)—and closes with a call-to-action to engage in the comments.
Chapters
Hey, this is Jess Yacker and this is issue number seven of the Millionaire Mindset. In times of crisis, today's issue is all about money. What to do with it, what you should invest in, how you should be looking at this market, the opportunities in a certain millionaire mindset way so that you can survive and thrive through this crisis. Listen, we're getting all these questions about what do I do with my money? Should I put my money in stock? Should I save my money? Should I, should I do that? And these are all great questions. Today I want to talk about four things. Four things that we're thinking about, four things that we're doing in the millionaire mindset that I believe that you should have when thinking about moving your money into any specific category, investment or in anything in general. Okay? So the first thing that's really important that most people miss the mark on, I'm going to say like 95% of people miss the mark on this. And it's the most important thing to have is have an objective in mind. Meaning know what your plan is to do with your money. Like, what do you want your result to be? What do you want your outcome to be with what you're doing, what's your objective? See, objectives can come in many different forms in many different ways. My objective is very different than my dad, T Harv Eker's objective. His objective is he wants to preserve his wealth. My objective is to grow my wealth. Our strategies then become very different in today's market. So if you don't know what your objective is, then you're not going to be able to get anything from it. You're not going to be able to achieve a goal if you don't know what goal you actually have. I learned this from my dad. If you don't know what you want, then you're not going to get what you want. So you need to know your objective. What is your objective with what you're doing? Think. Think about your objective in a few different ways. One is based off age, right? Age is really important because if you're a little bit older, then you want to make sure that you don't put yourself in a position where you are not going to be able to make that money back. If you're a little bit younger, you have some time to make that money back over time. So your objectives are most likely going to be very different. Also, you got to think of your personality, your pain tolerance, I call it. You know, are you someone who is going to be emotionally disturbed with the market? Like one of the things that is really, really happens with my dad is when he has a bunch of money in the market, he has trouble sleeping because emotionally he's worried about what's going to happen. And that doesn't sit well with him. It doesn't feel good for him, it doesn't align with him. For me, I, I'm not thinking about that. I'm not thinking about the market as a short term thing. I'm thinking it as a very long term strategy, a very long term thing. So for me it doesn't bother me as much. So understand what's your tolerance for right now and what's your tolerance in the future? Are you going to be emotionally attached when it drops 30 or 40% or are you going to be totally okay with it? That's going to help you with creating that objective for yourself. So number one is know your objective. Are you going to preserve? Are you going to be conservative? Are you going to be semi aggressive or are you going to be aggressive? Are you looking for growth or are you looking for just maintain? So understand that for yourself and that's going to help dictate what strategies you decide to move forward in. So that's number one. Number two, education. Listen. Most people have no idea what they're doing. They're listening to people. They based off of what they're hearing. And it's the worst thing that you can do. Just because Steve told you that this is the time to invest in the market does not mean it's time to invest in the market. Here's the thing, the markets right now, especially the New York Stock Exchange, doesn't make any logical sense. There's no sense to be made with what's happening right now in the market. Which means that investing right now is a scary and volatile thing. Thing that you can do. You have no idea what's going to happen. So because Steve says this is what wealthy people do, does not mean you should do it. Educate yourself, know a little bit more of what you're getting yourself into. You would never do something that would be dangerous to your time or your money or your life without knowing a little bit more about what's going to happen if things don't go well. So it's important to educate yourself. So educate yourself on one thing. Also make sure that you're talking to the right people and getting advice from the right people. This is a pretty wild story and something that actually happened and I feel like I'm definitely well versed when it comes to investing. I have A pretty large portfolio and alternative investments. I have, you know, invested in the markets. I have, you know, business investments. I'm invested in a couple different businesses. So I have some, some knowledge and education when it comes to investing. I've been investing since I was younger, obviously. My dad, T.R. becker, you know, he's a big investor as well. So he's taught me a ton about everything that I know investing. Plus I've worked for a real estate investing company and doing distressed assets. So all that stuff is something that I have knowledge and experience with and I'm pretty well versed. So I logically know kind of what to do and what not to do and how to best position myself based off the objectives that I have. So there's one investment that I wanted to do and it was a six figure investment, which means it was over $100,000. And I knew that the strategy, what I was going to do was making sense logically that I wanted to do that. But this is not what I do for a living. This is not my specific expertise. Even though I know what to do, doesn't mean I should be taking it, moving on it, right? So I reached out to my wealth advisor and I said, this is what I'm thinking. This is the investment. This is why I think this is important. And he goes to me, which is really important. Jess, you are thinking correctly. Very awesome that you're thinking this way logically, but. And this was in January, but this has never been. The market's never been so high ever. We've never had such a long run. Eventually something's going to happen. Now, did he know coronavirus is going to happen? Hell no. He had no idea. But he knew based off his expertise, because he lives, breathes and eats this stuff, that something, based off his 25, 30 year experience, something is going to happen where it doesn't make financial sense or risk based off of my objectives to make that type of investment that I wanted to do. So what I did was I took the money out of the market instead of keeping it in the market. And that investment ended up working out extremely well for me because one, the markets have gone down and I already realized my return. So I didn't lose any money on the markets. The timing was perfect. You know, that is complete coincidence. I was not trying to do that. The second thing is I put my money into something that luckily was something that I had control over and I built the business and it doubled my return because it was something that I knew was really good. So understanding that the Education that you get is one thing, but there's also people who do this for a living that you should be seeking some sort of advice from, some sort of guidance from at least some someone who knows more than you so that you can at least learn from. Just because Warren Buffett is investing in Delta doesn't mean that you should be investing in Delta. Okay? Just because they're doing something, you don't know what's happening behind the closed door. Again, it comes down to your objective, it comes down to your strategy, it comes down to your knowledge and your experience. So that's the second thing is education. Get educated. Read some books on certain investments that you are interested in. Also invest in stuff that you're interested in. I think that's super important as well. The third, managing your money. Listen, you should not be putting yourself in a position, especially in an uncertain time to take a huge risk that's going to affect you in your life and your lifestyle. We always say that you should definitely have at least three to six months and I would say in this time six months of money, emergency money that if something goes wrong where you lose all your income or something's going to happen, you have money left over to support you, to support your family, to support like what you're going through on a day to day so that you can get back in the saddle and get going again. Do not use your life savings to invest in the markets right now. It's way too uncertain. If that's something that you want to do, that's a pure risk. And I'm not recommending anything, nor am I recommending anything at all right now. I'm just helping you some strategy and some thinking about millionaire mindset types of. So it's important that you are managing your money. We teach the six JAR system. I'm going to post a link below and it's going to be in the newsletter. It's on the Facebook page and you can read that. The JAR system, it's a specific money management system that has a certain allocation towards investing. So you have money set aside for investing. If you don't have money set aside for investing, don't go into your savings to go invest right now unless you have a good more cushion, a good cushion for yourself, six months or more I would say in this specific uncertain time, then any extra cash on top of that you can use for investing. Investing in the strategies again, going with your objective again, going with what you want to do. Okay? So it's really important that you're not Putting yourself in a bad situation right now, especially in an uncertain time, there is no reason you can't wait. Yes, there's good opportunities right now. Yes, there's more opportunities right now. Yes, there's trends that you could probably get into and take, you know, get a good position on certain things based off of the opportunities. But here's the thing. There's an opportunity in every market. There's an opportunity in a good market, there's opportunity, a medium market, an okay market. There's an opportunity in a great market. The market doesn't mean that there's no opportunities or shortage of opportunities. So don't feel like you need to rush into anything. Make sure you're being smart with what you're doing. You're keeping yourself in a good position. But you're also thinking like a millionaire, like a wealthy person would be thinking, especially in this time. Well, first thing is a wealthy person would never put themselves at risk like that to just, you know, expose themselves like that. The second thing is if they did, they would be educated based off of the objectives that they have. Okay? And they are investing. They are investing. So, you know, wealthy people are investing it right now at the moment, but they're using their education, experience, knowledge, and advisors to help them. Okay? The fourth thing, I think this is something that so many people forget when it comes to investing and strategies that they decide to invest in. And it's really important that we're all familiar and we're all, you know, knowledgeable, exactly what's going on. So when it comes to investing, there's the control factor. There's different types of control. When you decide to invest into a company on the stock market, you are basically investing in the company, which means you're really investing in the people in the company that are running the company. So just by investing in the company, you are betting basically that that company is going to do well with their. With their profits, with their operations, with their revenue, with everything that they're doing for their shareholders. You're hoping that they are going to succeed in their business. And that's what you're putting your money in, that you believe that that company is going to succeed. Okay? But you have no control whether that company succeeds or not. You literally have no decisions, zero that this company is either going to do well or not do well. You're basically doing saying, hey, I'm going to give you money and I'm hoping that you do what you say you're going to do. That's one thing that you should really be aware of, Right. Is that when you're deciding to invest your money, you have no control what's going to happen with that money. It's really betting on someone else and someone's time. So let's look at it the other way. Well, the way that, you know, I prefer to get people started is, you know, taking control of your investment, meaning investing in you, investing in yourself, investing in yourself, meaning investing your, your growth, investing in a business that you want to start. Because one thing's for certain is you control your thoughts, you control your feelings, you control your actions. If you're going to invest in something, the most control that you're going to be able to get for an investment is investing in yourself. Investing in what you're doing, investing in the things that you have control over. Now you don't have control of the markets or the external factors that can cause a business to go down, but you do have control of the actions that you take within a business that you decide to do. All right? Also business, if you invest in it, if you invest in yourself to start a business or investing, you know, you're moving forward in a business. Usually a business is going to return far more return on investment than investment into a company in the stock market. Right? This is what I've learned from my wealth advisor and I'm going to share it with you. And it's something that was really eye opening for me and I think it's really, really valuable for you to understand as well. Most people don't get rich by investing. I'm going to say that again. Most people don't get rich by investing. Most people keep their wealth and grow their wealth, create wealth through investing. But the way that they get that wealth in the first place is usually by their career or their business that gets that money in the first place. So the money you make is going to come primarily. The big money that you make is going to most likely come from your business or a high earned income career. Okay? So when you make that extra money, then you invest that money to grow your money. The investments are not normally there for you to create serious richness right away. That's not how people normally do it. Unless. Unless that is your career, unless that's your job. Jesse, what about the day traders? Jesse, what about people who invested in penny stocks? Jesse, what about real estate investors who are flipping? This is what they do for a living. So what you need to realize is if you're not going to do it for a living, then you need to focus your time and energy on what's going to give you the 80% of the results, the 20% of the activities that's going to give you 80% of the results. What is going to do that? Put your focus in that first. Once you understand the things that are going to give you the best results and your focus dialed in and you're starting to make some great money, then take that leftover money from your management, from your jar system, from your allocations, and invest that money to grow your money. This is how you do it. This is how you create wealth. This is how you decide to really get rich, is you make money in a vehicle first. You take the extra money from that vehicle and you invest it in different places. Okay? You don't start by sitting on the side and doing these little investments. If that's not your full, you know, full job, if you're not a day trader, if you're not a professional investor, then you shouldn't be thinking that you're going to make a ton of money from investing. You should be thinking that you're making a return on your investments. But you're not going to get rich doing it that way. Okay? So think of it that way. Think of your control. All right, to sum it up really fast, One, make sure you have an objective. Make sure that objective comes first before anything that's going to guide you in everything that you do. Two, make sure you have some education, education for yourself, education from other people that know what they're doing and borrow knowledge from the best of the best. Okay? Don't look at something or someone and be like, oh, they're doing that, doesn't mean that you should be doing that. Again, this goes back to the objectives. Just because someone's doing something doesn't mean you need to do it. You need to be educated enough so that you know it works with what you're doing with what you're doing right now. Three, management. Manage your time. I mean, manage your money. Make sure that you're not putting yourself in a bad position. Four, think about the control. Think about what you want to invest in and how you're going to invest in it and think about the control that you actually get with it. Do you want to put your hard earned money into something that you have no control over right now? Or do you want to put your hard earned money into starting something that's going to create wealth for you right now? That's a decision you need to make. I hope you enjoyed this video. I hope you got a ton out of this video. If you. For all of you. Excuse me. For all of you who are watching this video right now, what I want you to do is comment below. What's one big takeaway from today's video? What's one big takeaway? What's one reminder? What's one learning that you got from today? I would really appreciate to see your comments. I appreciate you watching this video and have a great rest of your day, night, whatever it may be. But here's the thing. Don't wait. Start today and make sure that you are picking and choosing wisely. Bye for now.
