Recession Proof Your Life

Welcome, everybody, to this week's podcast, an amazing podcast. It's going to change your life. We hope this is so impactful that you want to share it with your family and friends, because it actually had some great practical advice. We're ready to talk about how to recession proof your life. My name is Mark Kohler and I'm here with the amazing Matt Sorenson.

Yeah. And I think this episode is for everyone. We're all having to deal with this recession. Whether you're a small business owner, real estate investor, crypto stock investor, you just got an IRA or 401k or you're paying six bucks in a gallon for gas, this is something everybody needs to be thinking about, and we know you have. And so we've got some ideas here that I think will be helpful in sorting through it and maybe giving you some information. That's going to be my goal here, to help you make some better decisions and know what to be doing, because we're all dealing with it. Wow.

Okay. I was a little too passive for me. I'm going to throw this out for some of you that want some strategies here.

Okay.

Here. So in the last two to three days, Matt and I have made it our goal to interview a number of financial advisors, investors in the stock market, real estate investors. I was just at a real estate conference this last weekend talking to, getting market analysis updates on different sectors. We were. We've been interviewing young and old, married and single, corporate and entrepreneurs. And we've come up with. I've got three pages here of that has been distilled down to five to six things you people need to do. These are. Yeah, sure, call them ideas, think about it, whatever. But I'm going to give you some things that I think are just no brainers you got to do. And I've been watching Ramsay Today and Cardone and Pomp and five other videos and podcasts. I think it's legit, man. Can you, can you get there?

Okay, I'm going to get. I get, I'm get there. Let me just deliver first and then you decide, but you know, deliver this first. Let me, let me make. If I can make my opening remarks and maybe you make your opening remarks

here on where I think I just made mine. You were generous enough to let me. You make your opening remark and then I've got point number.

Okay, okay. All right. I think. And I'm going to get into some stats. Okay. I kind of geeked out on the stats on this because I think it's really important to Just get into the actual numbers to understand what's going on. But if you look at what's happening, the stock market, I'm going to get into some numbers on that has crashed. I don't care what anybody says is crashed. I'm going to get into the numbers and we're going to talk about it. Crypto crashed. Now there's a lot of context need to put to that because crashed from. At what point we'll talk about that. Real estate market, super strong. Still very strong. Small business, very strong. A lot of small business owners, our clients like, man, I couldn't hire people anyways. I needed a breather to deal with all the increased demand I've had over the last couple years. Like I could appreciate a breather right now. But most small business is doing great. So we've seen some investment asset areas, stock market and crypto for those, you know, we got, we talked a lot about crypto and a lot of you have invested in crypto. Almost half the nation has bought crypto have seen significant decreases in value. There's the I word, of course, inflation.

It's like Undergo girls. I mean, I love their concerts. Okay, all right. I word in inflation. Okay, all right, so let's hit it. Here's my first point that I think all of us need to take into account in recessioning, okay? A recession. Proof your life. So I'm going to make these and we'll put this in an article. I'm sure that would be down in the description. You can click on it for some heavier or more detailed reading. Again, if you find this helpful, please share it. There's a lot of people that are scared out there, which leads to my first point, which is don't panic. Get involved learning. So a lot of people want to put their head in the sand when things happen like this. Oh my gosh, I lost my retirement. No, you don't lose your retirement. It just changed the balance. You're not going to dump and take all your retirement in one day. You don't come home and put it on the table and go, here's my retirement. And no, you take an income from your retirement and the balance is down. The market's weird right now. We hear the word inflation and recession and yes, we see expenses rising or in our expenses going up and costs rising. But here's the point. Do you still believe in, you know, Coca Cola, apple, our country, the dollar, look around the world, you know, I don't, I'm not a doomsdayer. I don't Think we're going to go completely in the toilet here. Get your thinking cap on. Be aware, consume, get informed, but don't freak out. That's.

I think, number one, and I will say my first tip, which might be. We'll say two, which parlays off this one nicely. And since we all have our thinking caps on now. I love that one. When teachers would say that in school, I'd always, like, roll my eyes. I'm like, oh. Cause I had it turned off.

I was off. Okay, now I'm on. Yeah.

Oh, that switch. Go. Okay, here's the biggest takeaway for me. This is the number one. Don't panic and sell. If you have assets and you're like, I need to sell. Don't panic and sell. I'm going to give you a couple reasons why. I remember when Covid hit. You know, I remember. And we kind of had our. That was the last recession when. When the pandemic hit, we had a. We actually had a recession that's two quarters of negative growth, if you remember. It seems so long ago, but we had a mini little recession. And then we had all this government stimulus and everything that. That brought us back, and people kind of got a little more comfortable, and we weren't all in lockdown and all this. So we actually just had a little mini recession just a couple years ago. But I remember a lot of people and clients would call and be like, they wanted to sell, and they were like, they were terrified. They wanted to go to cash. And this is something. Cash is trash, guys. You do not want. I mean, yes, we love cash to buy things, but you want assets. And if you're invested in assets right now, what's the number one rule anyone will tell you? Buy low, sell high. What is the market right now? Low. What do you do? Buy. You don't sell. Okay. Oh, okay. Let me give you a stat. Okay. I always want to illustrate this.

Okay, this is good, because I've got a point that contradicts that, and I want to know. There's a lot of podcasts out there saying we need a hot. You need a bigger cash position, but.

Okay, all right, I'm gonna. I'm gonna challenge that belief. Let me give you. I'll give a couple reasons why. This is the stats. I got some stats here on the stock market, and I'm gonna hit crypto here in a second. And again, real estate's been kicking butt, so, you know, don't worry there. But stock market, this is the third biggest crash this year. 2022, valuation of the stock market to date right now. Third biggest crash in my lifetime. The first was the great recession or great financial crisis. Let's you know, this is the Wall street, the mortgage crisis, 2008, okay, that was a 36% correction in one year in the stock market. Guess how much we're at right now. 21%. Okay, okay. The dot com boom, it was the second one. It was only 22%. If you remember the dot com, you know, the dot. This is 2000. And there was the whole dot com boom and a lot of the tech stocks just fell off a cliff. All right, so we're almost at number two. Like the only other thing in my lifetime, Mark's lifetime, that's greater one year reversal in the stock market was the great financial crisis.

What about Black Monday? What was that? Or was that 88?

So that's the Great Depression. That was a 40% stock market change.

I loved everybody that dated me more because, well, that wasn't in my life.

Say this. Even World War II only resulted in a 13% stock market correction.

Okay, what was the, what was the 2008 real estate crash?

The great financial crisis.

That's what it got dubbed, 36%.

Yeah. But here is, this is an important thing. If you take the finance great financial crisis in 2010, let's say we're kind of through it. Members kind of started in 08, 2010 to 2014. In that four year window, the stock market doubled. So if you got out and were like, I'm out. You missed the whole rebound. The market doubled. Not only did it recover with the losses, it doubled. And so you didn't get up the upside because what did you do? You sold low. You didn't buy low, you sold low.

All right, now we'll come back to this cash topic. I think so many of you see a variety of recommendations here. Okay? And Matt, that was a fantastic one. Don't panic and sell stick. Hang on for the rebound.

Yeah, and I got some caveats on that because I want you to analyze it. I'll get to that in my, one of my final points, okay?

And I've got, I've got. Maybe that'll come out in my counter argument. Okay, so number three, now remember, everybody, I just said go in with perspective. Don't freak out, be aware, be educated, be sharp. Number two is don't panic and sell just to get into a cash position when you can ride those assets on. Back on the rebound. Number three, little more back to basics here. In a sense too, is Do a financial statement. Find out what you got. You know, when recession hits, it's time to update your financial statement. Where. Where are your investments? What is your real estate worth? What are the mortgage balances? What. What do you have in your ira? What do you have in your Roth? Oh, you've got that old IRA still sitting around over here. Okay, this is time to clean it up. It's time to do a little cleanup. When a storm comes, you button down the windows, you shut the door, you bring in the carpet from outside. You know, you kind of clean house. So doing a little cleanup here makes you smarter and wiser in your next decision you're going to take. So don't again, be loosey goosey. Really tighten it up and do a personal financial statement. You okay with that, man?

Love it. I love it. Okay. I love it. Because that's going to tie into my last one.

All right, I've got about four or

five to do that one. You need to do that one before I do that one.

I want to go on.

Okay, I got it. I got another one.

I got one that Dove's tells off that. But you go,

my. My next one is don't be the dumb money, be the smart money. What is. What is dumb money? Done. And this kind of talks about my last comment, but it's a little different angle on it, and I think there's awesome stats on it. Okay. One of the big trends we all heard in the news and in financial world is kind of the Main street investor, the retail investor, the Robinhood investor, started buying stock. And this is before the pandemic, before the pandemic, retail investors, these us individuals out there just buying stock on our own. Not using advisors, not financial institutions, not hedge funds, just the retail investors, us buying our own stock. That accounted for 10 to 15% of the market before the pandemic. It doubled during the pandemic to 20 to 30%. It got up to 30% of the stock market was now just individuals buying and selling. And what happened is it was a mental thing of buy, buy, buy. We're making money, the market's going up. Buy more, buy more, buy more, buy more. And now it's shifted to, oh, crap, the market's going down. Sell, sell, sell, sell, sell, sell, sell. And it's kind of perpetuated the market to rise faster than it otherwise would and also drop faster than otherwise would because there's a lot of people doing dumb things and they're scared and they hear all the financial news.

Sorry, I've got I just got. I just got a tweet on the Amber Heard Johnny Depp case. Can you hold on a moment? Okay.

Yes.

All right. Sorry, you were saying people dumb things. Yeah, I'm sorry. I was watching for breaking news. Oh, were you talking about me being dumb? Okay, go ahead.

Yeah, tuning back in. Okay, so play for the long game. And this is an interesting point also in the data. And this is from a Goldman Sachs podcast, and they had some awesome stats on this, on what's been going on the market. One trend that they've seen is ETFs. People who buy ETFs who are kind of just like, I'm just going to go long term. I don't even know what the hell to buy, but I'm going to go buy something cool. Fine, go buy an etf, whatever. But like, those have not. Unchanged. Unchanged. Because people aren't. Their emotions aren't in it. They're not in the. Oh, no, it's going down, I sell, it's going up, I buy. And so they're just like, just buy, just buy, just buy. I'm just accumulating assets. And so don't be emotional, don't be the dumb money. Be strategic and be in it for the long haul. Be in it for the long haul.

Long haul. Okay, that was on Dave Ramsey's podcast. Just telling everybody to calm down is you're in for the long haul. It's okay, you know, it's. You haven't. It's down 20%. It'll come back. Doesn't mean you need to jump off a cliff. Okay, my next one here, I'm titling. Pay attention. In a recession, we need some austerity for some of, you know, that's. It kind of came of all that word was used a lot in the European crises about five years ago. Means tighten the belt, watch what you're spending, be careful. In a recession, one of the best things you can do is reevaluate. Do I really need to eat out three nights this week? Two nights? Can I buy in bulk rather than buy one offs? Can I get a better price per item by doing a little more storage in the house? Do I have auto pays in my debit card? I haven't reviewed in a while. This is a great time to kind of go through the credit card statement, the bank statement, and start paying attention to all the little things. One of the best ways to be smart in a recession is pay attention to the little things. It's not always just do one big thing. It's doing the little things, watching the spending, watching the value you're getting for your spending. And we're going to be talking about how to recession proof your business next week. One of these is, am I providing enough value to my customer so they don't cut that cost? We need to be better consumers. We need to be smarter consumers. In a recession, it's. It's where the weak. You don't get eaten by the lion out in the field. Right. Recession hit the slower 20. They're goners. So, yeah, you know, so let's be smart, pay attention.

Love that. Okay, my next one is going to be. Let's call this one Should I Stay or Should I Go? All right, Should I Stay or Should I Go now?

I got it, I got it. You don't have to say, if I

go, there will be trouble.

I don't want this in our playlist. Is this in our playlist for the band?

I think it should. Dude, isn't that the Clash? That's a. If I go, it will be double. Okay. All right. Okay. Okay. So come on and ask.

Okay, okay.

I'm not doing vocals, guys. Don't worry. I'm just playing guitar. It's, you know, I've never seen you guys. This is terrible. All right, when Mark was saying, analyze what you've got, I want you to analyze what you have to decide whether you should keep it or do something else. Ooh. So let's say it's the rental property. Okay, let's say you've got a rental. And this is an important little update for any of you real estate investors. Rents have gone up. As we're talking about inflation, what's the one thing you benefit as a landlord? You better be increasing your rents by at least 10% and a lot of markets, it's a lot more. Okay, so let's reanalyze the assets you have.

All right?

And the first thing I would do is look at your rents, make sure you're charging rents, then look at that property and say, alright, how did this perform? How much is it appreciated? Probably a lot. What's my cash flow on this? Probably better than it's ever been. All right? And if you've had that property for in a few years, you know, your, your mortgage pay down is the greater amount you're. You. The longer you get in the loan, the greater that pays down the principal. So do a real number by number analysis on that, on how it's performing and you can just look at your cash flow and appreciation. All right. The Next thing I would do. Can I add to that?

Yeah, let me add, but if I may, one of the interviews I had had yesterday, it was a lot of fun. I was interviewing some 20 year olds, I was interviewing 70 year olds and everybody in between on some of these. And Randy Lueke, co author of my book, the Financial Freedom Book, what Wall street may not be telling you. We're going to talk about Wall street in a good way here too. But one thing, the word he said, Matt, is be surgical. So this kind of is the antithesis to what you were saying. Don't sell, don't panic and sell. But there may be some things to sell. Let's be surgical. Let's get in and look at each one, each stock, each et, each crypto.

Yes, but what I'm saying, when I'm saying don't sell, I'm just saying don't just go to cash, don't just sell. And be scared of investments, period. Because on the one hand you might have investments you've had losses on or that have gone down in value. You also have stuff on sale. There is great opportunity usually when there's a recession like this for you to buy stuff at a discount, have more value later. And so look at what you do have, what you want to keep. That's like, this is an awesome performing asset. And this could be, I want you to every asset, your rental, your investment, stock portfolio, your crypto. Like, look at everything, maybe even look at what resources you have too in terms of equity in a home or other things like that that you may want to be, knowing you have a cushion there if things get worse or that you may even want to tap into if there's opportunity. So should I stay or should I go? Look at the assets that you should stay, look at the ones that should go because you have something better you could get into.

Yep, I love it. And okay, I love it. And that's where. And I will highlight this, Randy and I talked about it. When you're looking at your stock portfolio, some of those that have fallen, we're looking at a recession that's probably going to go through the fall at least. I mean, that's most predictions. We are not at the bottom yet in a lot of asset classes and sectors. So if there's some stock right now I want to sell, I only have a 30 day wait to get around my wash sale rule. So if I want to sell a few things and go, okay, I'm going to wait 30 days and just get back in that I'm going to stay around for the rebound. That is one I want to keep. You know what? I am going to harvest the loss for 30 days because I think I'm, if anything, things might go down over the next 30 days even further. Now, we're not financial advisors. Be careful. I don't need a lawsuit tomorrow saying Mark said to sell, blah, blah. But the point is, look at each one carefully and say, could I rebuy it in a month or two from now or should I just move it from Tesla over to Apple or something like that and say, so you're not just going to cash and doing nothing with it, but all right, okay, I'm going to come back to cash. I still said I had a counter argument to your cash, so. Okay, but here's my number seven. And Dave Ramsey would be sad because maybe this should have been number two. Get out of debt. Any of you that have some debt right now, in a recession, debt becomes more expensive and it can be a noose around your neck. You could be losing your job. A lot of sectors are going to be doing delay offs. I don't know what your situation may be in your small business. Sales may go down a little bit. That's what a recession is, people. So having debt, having debt is not a good idea. And that's a constant. So any consumer debt you have, start that snowball. If you, instead of going to cash, if you are going to sell something, pay off some debt, get rid of it. Let's get lean and mean. That's the theory. In a recession, you've got to get healthy, you got to get lean, you got to stay educated, you got to stay positive, eat healthy. That's, that's the piece right there.

Love it. Okay, I got a little word for the crypto investors out there. This is a special message for any of you that have bought crypto.

Okay.

Trying to think of a good way to, you know, title this. Let me come back to title. What the hell? I'm gonna.

We're gonna call this one Crypto World.

All right. I guess. Well, let me say this for, for those that in crypto, I can just talk about bitcoin here for a second because it's, you know, it's the behemoth in the crypto space, right? It's down almost like it's in the low 20s right now, which is, if you look, it's a 20,000. Okay. Per Bitcoin right now, guys, it was 13,000 per Bitcoin. Now let's. In the beginning of 20, 20 let's just look at that. 9,000. Okay. Let's just take two years from now. Let me go to June of 2022. June of 2022. Sorry, sorry. June of 2020. Sorry. June of 2020, it was 9,000. All right? In two years it's tripled and now it's just gone back to only doubling. Now, I know many of you were like, yeah, but I bought last year, Matt. Okay, go look at the price history in the chart on crypto of the people who bought in 2017. It's this thing has jumped around all over the place. Be cautious in crypto. Of course, like, you got it. But also what I would say is this, look at this in the big perspective. And if you're in crypto and you've been buying crypto, and this is what I'm doing with my own stuff, I'm looking at, why did I buy that? Why did I buy that particular token? What value did it truly have and that I believe in it? Or did you get caught up in the hysteria of what this is and you just bought it because the price was just accelerating drastically? So just make sure you understand the crypto you bought that you believe in it and then also put the price changes in context and don't just look at one month, one year, look out a few years. You're not buying this for to make money off it tomorrow. This goes back to an earlier point of buy for the long haul. These are investments. You're not a trader every day trying to trade on this.

Now, Matt's got two themes with this point and I love it. Matt, let me do the broader theme. This is the same approach. You're looking at your crypto and you alluded to this is what you do with everything. Let's go back to 2005. How many people were buying real estate that had no clue what the hell they were doing? And they were just buying real estate because everybody else was.

Yeah.

Now the people that really made the money in the run up, they were buying rentals in 2000 because they understood real estate. They were real estate investors, they loved real estate and they wrote a 10 year run that was unprecedented in real estate. But then every else is like, I got to get in that. And they start buying rentals in 2005 and 6, lose everything in 08 and go. Real estate sucks. No, maybe we should have understood what we were buying and believe in it. And the same things with crypto. The most of our clients that have made millions in crypto, they were buying it Six years ago because they believed in crypto. Yeah. Now, if you want to stay in crypto and you want to be in crypto, understand it, learn about the metaverse, see what's going on on an upland. And TCG, I heard yesterday at TCG had $100 million real estate sale this week, and virtual real estate. $100 million piece of real estate was sold. People, there's things going on in the world when it comes to currency. Countries are moving to virtual. Biden released an executive order to look more into a crypto aspect of the US Dollar. So if you believe in crypto, start following it, start understanding it, and buy the crypto. That makes sense. And so I love your point, Matt. It's really about understanding the assets you're buying anyway.

Yeah. And it's the same thing in any asset class, whether it's a stock to buy, a piece of real estate to buy. Don't buy the hype. Buy what you know. And even within real estate, take that. There are so many strategies within real estate on what to do with property. Be looking at that. Same with crypto. Like, what is the economic promise of this? Like, I'm getting. I know I'm getting in early on a lot of stuff, but what's the economic promise of it? And make sure you understand it. Don't just get caught up in the hysteria.

Know why and what you're buying. And I think your crypto is this.

And I do love Hysteria, by the way, is not a Def Leppard song.

Oh, dude. Yeah, it is.

That's a good one.

I saw him live. Oh, my gosh. So good. By the way, I'm going to see Midnight Oil this week. They brought.

Oh, Beds Are Burning, baby.

Oh, boot, dude, it's going to be so good. I am. Beds Are Burning.

Singer's name? He's a Peter Garrett.

Peter Garrett.

Interesting cat. Yeah.

Oh, my gosh. Went on to serve in the Parliament.

Parliament, yeah.

Huge, you know, environmentalist. He just. Great guy. Huge. 6, 4, 6, 6. With these huge hands. Anyway, there's so many better songs than Beds of Burner. I'm a true classic. All right, okay, now number nine. I think we might come up with 10. Okay, number nine, I'm going to my cash comment. Ooh.

Okay.

Now I know I can get Matt on board on this. To the what degree is the question. In a recession, you need some cash. Cash reserves. Things could get pretty dicey. I don't. Again, it's not going to be, you know, World War Z. But the point is, we need cash reserves. The normal adage of having at least three months of your cost of living available as a resource is very important. Some people may save in six or nine months in a recession. You need some cash, you need cash reserves. You've got to have some cash. It is safe. It's not going up and it's not going down, but we need it. When things get tight, we're going to curb our spending, we're going to pay attention, we're going to be cautious in what we're doing, and we need some cash, but we're not taking our portfolio to 30% cash. I agree.

Matt. Yeah.

Can you buy into that?

I love. I think, I think a couple things work where cash is. Nice one is you do need kind of your just savings. I'm not talking about you're taking investments to cash. You just need some savings, right. To get through a three months or whatever window you feel is appropriate to have a, you know, some cash for your living expenses. Also, the one caveat I was going to say on cash is cash is nice. Depending on what you believe on where this economy is going. If you want to go be a vulture, right? Cash is awesome. When a market crashes and you got a lot of it and there's deals to go buy. Yes. All right. What I'm just saying is be the hunter, don't be the prey in this scenario, all right? Be the one that has the cash to go buy the deals. Don't be the one selling and being a moron and selling out when you could have. You know what I mean? Now you're the prey and you got out when you shouldn't have. And you so make sure you're strategic about that. And that's where it goes back to the analysis of what you have. Take it in greater context. Don't take a snapshot of just today and, oh, it's priced at this from what it was three months ago. Man. Zoom out a little more.

I'm glad you. Because you made my point. I actually am trying to move more of my positions to cash to be ready to buy.

Yeah, that's a difference.

If you're like, hey, the recession is going to be here for another four to six months. We should see some more bargains. In fact, even better bargains than now. Bitcoin could get down to 15 grand again. Hell, I'm in. You know, I'm buying.

Yeah, but.

But the point is, if you're going to cash to just put your head in the sand and hide.

Yeah.

Not good. If you're saying I'm going to cash because I'm going to spend it all by Christmas and I'm going to get some bargains. That's different.

Agree totally. See, it came full circle. We are on the same page. Okay. Okay. I want to say one other thing.

Okay, I've got a 10. Maybe we can combine them. So you say you're one more. I got one more. Let's try to make it number 10. Let's try to craft a number 10.

Okay. This one, I don't know. I'm gonna say this one's different. Let me just say that this recession.

Preemptive strike. Okay.

This one's. I just mean this, this one. And I'm meaning the recession is different.

Oh, okay.

Okay. Let me tell you why and why I'm not as worried and I think a lot of other experts are, aren't as worried about this recession as much as we have in prior ones. And then I gave you the numbers on stock market corrections. You know, you're like, oh, this is gonna be like the dot com boom or the great find the financial crisis. Oh my gosh, this is great. Buckle up for a couple years. You know, those took a couple years to get out of. This one's different. There's two indicators that I, and I listened to a lot of stats. When there's two I took away that told me this isn't, it's not gonna be like that.

I love it. Buy no beyond in a year. I'm sorry.

Yeah, that seems very likely. All right, let me give you, I'm going to give you three steps. One, just unemployment in general, is it an all time low? And that's always the main thing in a recession that you're worried about is people lose jobs. When they lose jobs, they're forced to sell other assets. Like they're forced to sell. They don't want to sell, but now they have to sell. They have to sell their house. They have to do all these things and that all those prices, these that are investment assets that are part of our wealth start going down because we always people selling stuff, not to mention they're not consuming in the economy anymore and buying from our small businesses and the big businesses and all this. Okay, so unemployment is still at like record lows. The second subpart to that is teen employment. If you want to know how hot an economy is and how much workers are needed, look at how many teenagers are working this. This year we have recorded teen employment numbers. You know, it's been so long since I go to a Starbucks and you actually had a teenager serve you. I can't remember anytime now. The place is full of teenagers serving you a Starbucks now. All right. It used to be like you know, 20 somethings, college kids, older like I. So that, that is just like a reflection you can just see. And the last point I will say which I thought was really interesting stat is cash in individual people's checking accounts is at record highs. People still have cash. It's not, they just don't have money. They're just scared of what to do with it.

I'm going to add a. I'd love it Matt. And I would add a fourth. Real estate is fundamentally strong. There's not a mortgage crisis looming. There's not, you know, subprime loans out there. The real estate market is strong and more than ever that I don't know what you call the next gen or whatever. I've lost all the generational names. They're ready to buy homes, the 30 year olds are ready to buy homes and there is not enough inventory. So the real estate market is strong too.

Let me say on that, on that real estate thing because you know the builders are trying to build again, right? Is there's this another stat? So all these stats, record number of houses in construction right now than ever that are in construction and they're, they're being held up with supply chains is taking longer than it normally does. So that's, that's a good fact that says some inventory is coming back.

I love it. That is a great assessment of this recession. I don't know if that qualifies as an action item in recession. So I'm going to give number 10, see if you can get on board with 10 and I'm going to read the nine and I think this is be a good number 10 to summarize.

Yeah.

Okay. Number one, keep your head, be aware, be sharp. Don't go hide out in the mountains in a cabin. Don't go off the grid and don't freak out. It's going to be okay. We don't want to make decisions in out of fear. Number two, Matt's was don't panic and sell. Don't take the action of just carte blanche sale of your different assets out of fear. Number three, do a personal financial statement, find out what you got, what condition, it's maybe not as bad as you think. You may be surprised to see what's in your portfolio and its current value. Number four, don't be the dummy, stay in for the long Haul, catch the rebound. Don't just go to cash and set it out and then come back later when it's all back up. Be smart. Number five, pay attention to your expenses. Pay attention to what you're spending. Curb costs where you can and be a better consumer and smarter. Get value for your money that you're spending. Number six, be surgical. Should you stay with some assets? Should you go with some assets? Listen to the clash when you make that analysis. Be surgical. Look at each asset independently. No fell swoop decisions. Number seven, get out of debt. If you have any consumer debt laying around, it is time to get that snowball. If you are going to sell some things, use it to get rid of some cumbersome debt that you need to get rid of. You need to be lean and mean during this recession. Number eight, know why and what you're buying. And this is especially for those cryptos out there that maybe got into hysteria of buying crypto. Reevaluate your crypto portfolio. Get educated on it. There's some great podcasts out there. Start following some. Our Crypto Tax Summit we had just a plethora of keynote speakers that really knew the market. Start following them. Number nine, have some cash reserves, cash reserves for emergencies and cash reserves to buy. So and that's okay as long as you have a plan for that cash, but not just to put it under the mattress. Number 10 and we matt kind of said this, you know, be the hunter, not the hunted. Number 10, be ready to buy. I think if you go into the recession going, okay, I'm going to take some steps here, I'm going to lean and mean, I'm going to be cautious. I'm going to get some bargains. It changes your whole mindset. So number 10 would be the one way to recession proof yourself is to come out of it with some steals. I think Warren Buffett's looking for some deals.

Oh yeah. You know, Wall street loves this stuff by the way. They love the volatility because they have a job. No ordinary, ordinary investor on the street freaks out and sells and they need that guy to freak out. They're hoping he freaks out so they can buy low, buy lows. LI is not complicated and so yet our emotions tell us to do the opposite. But we know the math doesn't work that way. You don't make money that way. We but our emotions tell us that's what you should do. So just remember that right now is buying opportunity. But I still love the analysis and what we talked about of looking at the assets you have. Look at the ones you know are definite keepers. Look at the ones you can get rid of because you can do something better because there is opportunity. Like Mark said out there, go out and hunt. It's kind of fun. That's probably the best way to have a positive attitude when there's a recession is think of the opportunity that comes out of this.

Well, there you go, my friends. 10 Ways to Recession proof your personal life. And I have to say, Matt Sorensen with some incredible data, some good research there and some commentary on the recession itself. Matt.

I mean, I have, my bachelor's degree is in economics, you know.

Oh, well, President Bartlett right there, you know, looking for the Nobel Peace Prize. Matt Sorensen.

That's right. I mean, at least like, you know, what's the chair for Economics? I don't know, maybe Federal Reserve chairman.

You're shoe in.

Yeah.

Well, thanks everybody for listening or watching. If you caught this on YouTube, please share this with someone. I want my kids to watch and listen to this. I think young people are more susceptible to getting caught up in the hysteria of the recession. This is, oh, my gosh, the sky's falling. The older you get, the more you realize that there are ups and downs in our economy and it's okay. And we can learn from the last one, learn during this one and be better on the backside. So, yeah, thanks, everybody. We'll see you.

Thanks, everyone. Sa.