Could You Survive The Next Financial Crisis? (Uncut) 03-16-2025

Could you survive a financial crisis 60% of people cannot my question for you is if your paycheck stopped tomorrow how long could you last before running out of money how long could your business last most people don’t know and that’s exactly why they struggle the truth is financial stress is not just about numbers it’s staying up at night and the anxiety around not knowing and feeling trapped inside a cycle where money control R your life today we’re going to put your finances to a test with this

financial stress test and at the end of this video you’ll know exactly where you stand and the exact steps that you’re going to need to take going forward so the first step is start with your income breakdown every single piece of income that you might have coming in needs to go on one sheet so the first thing for most people it’s going to be their primary job salary as an example so in this example it’s $44,000 a month this would be net of all taxes and everything else this would be pure income coming in

from whatever paycheck you might get that you either get in person or automatically deposited the second one would be side hustle which hopefully you guys have in this particular example we’re going to use 500 some passive income from dividends or rents or things like that for another 300 and then just other income of 200 hopefully you’re more diverse than just your salaries but in this example this person’s sitting at $5,000 a month that that is their total net income each and every month so now

you know if your expenses are more than this you’re going backwards if they’re less than this then hopefully you’re building some reserves and we’re going to talk about that in a little bit now let’s get into expense breakdown because of course there’s just income minus expenses equals cash flow this is no different than a real estate deal in a real estate deal we have rents and all the other things and you have expenses for whatever property you own but it’s the exact same process so this is is

just you personally if you cannot Master this you’re going to have a very difficult time buying real estate or running a business or anything else cuz all businesses and all Investments have these two basic principles so now that we’re talking about expenses you can see in this particular example they’re about 3850 so your rents at about 1,500 or your mortgage I guess it could be you got your groceries at 600 your car payment all the things that you might want go onto this list one glaring thing

that’s missing here is fun stuff these are just basic expenses in this particular scenario you’re saving just over $1,000 a month so you simply take the 5,000 minus your expenses and you can see $1,150 in positive cash flow a month now a couple things to consider here most people focus a lot on expenses now I’m not saying that you should it but I firmly believe that you shouldn’t have to cut up your credit cards and forgo a cup of coffee at a local coffee shop I think to really to move the needle you

should focus on your income you can really control your income even though you have the illusion that you can really control expenses you really can’t the only thing you can do is forego some things and not enjoy life in the last slide you saw that there were over $500 per month just servicing some kind of debt credit card debt student loan debt whatever it is in many cases this is very large for a lot of people and this is what actually keeps them out of the asset investment Market buying a house

buying Investments for cat form because most of the time they’re just barely trading water bad debt is any kind of debt that is really expensive so think of 18 20 22% debt that’s the kind of stuff you want to eliminate and the only way to do that is to pay down principle and then they accumulating that and all that happens is their positive cash flow each month continues to dwindle the other thing I want to talk about is the emergency fund so if you don’t have one you need have one so a lot of people

consider this savings that’s fine doesn’t really matter where you have it the big issue here is if if you only have $5,000 in emergency fund this only covers you for about a month and a half that’s it so in my personal businesses especially when Co hit we had to take a look at all our cash CU we didn’t know if all the renters were going to pay rent or not so my partner and I Ross we had three months of cash at that point to be able to cover mortgage payments just because tenants might have stopped

paying doesn’t mean that we don’t have to pay our expenses so the exact same scenario happens at a personal level so think of the federal workers right now especially around do so if you were just one of those workers you would probably have all those expenses but then potentially your income might go away at some future point so how are you going to replace that the only way to replace that is through emergency funds so the very first thing that you need to do is get yourself comfortable with some kind

of emergency fund personally I like like 6 months in this particular case that’s about $20,000 now I know for a lot of you that might seem like a lot but trust me if you can just get that done you’re going to be in a much better situation and you’re going to be in a situation where you can make better decisions on maybe you want to grow your side hustle or maybe you even want to look for a job that pays you an extra 10 or $20,000 a year whatever it might be it just gives you a little bit of Financial Freedom

when you have no emergency fund you’re literally moving paycheck to paycheck and the issue is that you now have a gun to your head because you only have 1.3 months to replace that income and by doing it you even fall behind once you put yourself through this financial stress test of income minus expenses and you now know your cash flow you now at least know where you stand and you can create a game plan goal step number one is assess your finances but number two is you got to kind of create a plan you

got to sit down and be intentional on creating a plan so that you don’t have this financial stress the very first step to creating a plan is to create a cash cushion now what this is is a 3 to six months of expenses cushion now I know for a lot of you this might seem like a lot you might have to make some Financial changes but that really is the whole point and trust me when you get to this point you’re going to sleep better you’re going to feel better and you’re going to be in a position to make a lot

different kinds of decisions around side hustles or even your primary job the next step is to eliminate all high interest debt credit card companies get you they give you easy credit to get you in debt and what you really want to do is pay down that principal each and every month I certainly got into this when I got out of college both by kids got into this when they got out of college the credit card companies give you a free credit card for the first time in your life you could charge things but it comes with a cost and

today that cost is an 18 to 20 to 22% per month so if you have a $110,000 credit card balance you could be paying over $2,000 a year just to tread water and to break even so the very first thing that you want to do after you start building up a little bit of cash cushion is start to pay down the principle on those credit cards so that you now can eliminate that because in that particular example that was nearly $500 a month and you’d rather have that as part of your cash cushion or into your reserves itself the next step of

course is to figure out ways to increase your income or reduce your expenses so let’s focus on the unnecessary spending especially in today’s world what we find ourselves doing is is signing up for all these creative subscription Services as an example so think of prime and Hulu and Netflix and all of those things that you just have to do to watch something these days those all catch up to even though they might be $9.99 $1999 $29 a month those are all things that can catch up with you another one of course

is just impulse buying so when you go to the grocery store or you just go to a mall or you go to any kind of store just try to refrain from the impulse buying because that stuff you’re buying you probably really don’t need it so I have a kind of a bucket of do I really need it or am I just buying it because I think I need it so it’s a want versus need decision so that’s another thing that you’re going to have to figure out that’s another habit that you’re going to have to break but what I like to do

is like to focus on income others would be just ordering food online and having it delivered or bottle water or things that are just being delivered right now things are so easy they just could deliver to your door and these little things add up but what I really like to do is I like to focus on income and everybody wonders like well I’m in a job I get two or 3% increase each and every year but really I’ll tell you from an employer standpoint how do you make more money from an employer you become

valuable to them or invaluable to them that’s how you develop a skill whatever it might be but something that the employer can’t live without when the employer realizes that if you leave you’re going to be very hard to replace then now all of a sudden you’re an extremely good position to be able to renegotiate or command a very high salary and how you do this is just go on YouTube go to trade schools or go to uh weekend seminars or whatever it might be just to try to develop a skill and bring it back to the company and you start

saving your company a bunch of money now that could be video editing it could be Graphics it could be website design it doesn’t really matter what it is it could be shooting videos like this I’m telling you right now that if you’re going to make more money you have to dive in determine wherever you’re working how they make money you either need to figure out how you’re going to make them more money or how you’re going to save them money and once you figure that out in their eyes you’re going to

be very very valuable to them and you’ll probably even and move up the ladder because they’re going to realize that losing you is going to be a real problem for them I’ll give you an example let’s say you’re in an administrative rle somewhere and you’re sitting there and you have the pulse of the company and you’re looking at all the expenses they’ve got for the copy machine and all the supplies and all the things that are coming and all the people all the vendors that are rolling through the company that particular day if you took

the initiative and you just take a little bit of initiative and you’re trying to help the company actually make some money somebody’s going to take not to that you’ll be rewarded in the short term and in the long the next thing is to start investing now I know in this particular situation that’s probably the last thing on your mind but here’s the reality most people that are this tight spend then invest you need to twist this around and you need to start looking at investing and then spending what’s left

so investing should actually not be at the end it should be at the beginning now I also understand that you have expenses you should always be looking at things to invested and there’s all kinds of things that you could be doing one of the easiest things in the world you could be doing is just buying silver coin so we started giving out silver coins in our company years ago at the time we were buying them for $ 18 20 $25 and as of today it’s up over 30 now that was a gift from me because again I just

am trying to get everybody to realize anybody can go out and buy a 1 out silver coin for $20 hold on to it and throw it in their safe if they have and that thing has and will continue to grow based on what’s going on in the economy and the money supply and gold is the same way it doesn’t have to be a gold or silver coin it could be Bitcoin it could be a stock it doesn’t really matter what the point is you got to get into the game both my sons have very small stock portfolios in the $2 to $3,000 range

just the fact that they’re watching it and we’re discussing it is all that matters it’s just being in the game just realize that you twoo can be in the game you don’t have to put a bunch of money into the stock market you don’t have to put a bunch of money into the real estate market you just have to take an active role in your own investing even if it’s at a very small level and it always starts at a very small level and from there what you want of course is to build multiple streams of income because

what will happen is maybe you make a little bit of money on bitcoin maybe you’ll make a little money on golden silver and maybe you save up to buy that first raous or that condo or whatever it might be and now you’ve got some passive income coming in it doesn’t really matter but multiple streams of income are better than one the last thing you want to do is be reliant on a paycheck just ask all those federal workers who are now being eliminated through Doge they obviously never saw this coming what they’re going to rely on are the

multiple streams of income and if they only have one then of course it becomes a problem it creates Stress and Anxiety and the last step of course is to scale your passive income until a replace es all your expenses and now at that point you’re financially free in this particular case with this example the goal would be to grow your passive income to about $44,000 a month and at that point you’re financially free what you want is your passive income to $4,000 a month not only your W2 or your salary you want your passive income at

$44,000 a month so that way you’re working where you want your passive income is covering all your financial EXP expenses now you have the choice to be able to grow your side hustle go to the job you want or not even work at that job at all it’s just completely up to you but you got to build your base of passive income that’s how you’re going to get out of the Rat Race that’s how you’re going to become financially free and it’s a long process this is not immediate this is not going to happen over just a couple of months it’s going

to take a short-term and a long-term plan to break old habits and create new habits but trust me once you get to that point once you get financially freed you will never turn back some of them you’ll do on a bigger scale and that could potentially even become the path of your future the goal here is to not simply and solely rely on your job or your W2 income so if this financial stress test finally made you realize that you too need to take control of your financial future then I highly encourage you go to

our Limitless conference this year in Texas at this event you’re going to learn from top investors entrepreneurs and financial experts on exactly what they’re doing and what you should be doing in the coming future you’ll get real actionable strategies on investing and how to get cash flow if you’d like to buy a ticket you can right now just click on the link below there are three levels of money management from your paycheck to Building Wealth if you’re stuck trading time for money and want to

build passive income this next video could change change the way that you think about money forever