As stated in previous posts, the $500 Millionaire’s key to success is always being as prepared as possible. You cannot prepare for everything but in today’s society, with the fiscal cliff potentially less than two months away, the chances of the U.S. (therefore the world) becoming a harder place to succeed is becoming more likely As much as the $500 Millionaire does not want this to happen, he has an amazing outlook on what HAS happened in the past and what will happen in the future. By reading this, you will understand where you need to position yourself in order to be on the benefiting side of this situation.
J.P. Morgan once said, “It is best to buy a business when there is blood on the street.“ Well as J.P. Morgan;s blood seems to be all over the street, tough times are still to com and anyone who is prepared for it, not only survives but usually comes out better than going in. Fortunately history can predict what is likely to happen in the future While reading this, please remember the definition of insanity, “doing the same thing and expecting different results.” This post has nothing to do with any political views but just the direction of our country. Not much has changes so we do not see the outcome getting any better.
The $500 Millionaire cannot predict the future but he constantly looks at the past to see trends and this is one that has happened over the past couple thousands of years. Although this is a trend that seems to happen throughout history, right now it is a little bit different in the US because of the difference in generations (i.e. Baby Boomers, Gen X, Gen Y, etc). The $500 Millionaire feels that there are 4 trends we need to pay attention to and now more than ever because we are are in the most difficult trend right now These 4 trends are “The Boom, “The Bust”, “The Squeeze”, and “The Sneeze”. See if you can tell which trend we are currently in…
Let’s start with “The Boom”. “The Boom” is when EVERYTHING is going great. Markets are up, unemployment is low, and people are happy. This is when college grads get out and get their dream job, the student loans are easily paid off and life is good. The Baby Boomers (people born between 1946-1964) have a huge effect on all of these trends and due to the large number of Boomers, it seems that these trends are even more extreme than in the past . The Baby Boomers are so important in these trends because they will change every generation. They will change everything from the markets to retirement. Boomers are a generation we need to watch and follow their needs.
One interesting point to realize is that Baby Boomers, for the most part, are changing their lifestyle. Most should starting to get out of the workforce but due to a down economy have to stay in if they can. Baby Boomers are changing their needs from product needs, to service needs, to knowledge needs. People use to buy just for the products. Before people would trust just the product and the service…Now they need to know EVERYTHING. It is like the majority of today’s buyers have switched from a group who wanted a product to a group that just wants to THINK we have the knowledge.
“The Burst” is exactly what you think it is. The society is too top heavy with no foundation or support for all the empty promises and assumptions to the point where the bubble/boom pops. When this pops, it is a surprise to most people but not all. For years people are fed information about all the good things happening but then, almost overnight, it is all gone and most people are sitting around asking themselves, ”What Happened?”
When you over promise on things that cannot be delivered, or you are buying things that you just cannot afford, then eventually REALITY ALWAYS CATCHES UP. Let me say that again and please remember this. REALITY ALWAYS CATCHES UP! This was easily seen to come by looking back through history or by doing your own research. This is how the $500 Millionaire knows how it continues.
”The Squeeze” is the next trend. All of these trends are extremely important and give you multiple options you can take. During “The Squeeze” you have two options if you act fast enough and if you do not act, you have no options and you get pushed one way or the other. During “The Squeeze”, society and the economy squeezes out the middle class. You will always hear people saying, “the rich just get richer and the poor just get poorer”…That is just not the case. What happens here is the Middle class dissolves and some of them will rise up and be considered rich and some will go down to being considered poor. Please understand that the $500 Millionaire did not say half will go up and half will go down. The people in the Middle Class, during this trend, need to make a decision if they are going to rise or are they going to fall. The Middle class is the one who will be most affected and if you do not take action, you will most likely fall lower than raise higher.
During “The Squeeze”, you have to take control, either in your life or in your business. Remember, if this trend happens, there will be no more middle class. They might still be called the middle class but they will not have the buying power like our middle class had for the last 10 years. You need to position yourself and your business to support one of these two classes, upper class or Lower Class. To make it simple, you need to be Wal-mart, or Whole Foods… McDonald’s or 5 star steak house. If your customer base was the middle class, you need to re-evaluate your strategy fast.
“The Squeeze” can take up to 15-20 years to fully happen and anyone who is able to position themselves in good spot with cash on hand and buying/investing power will have much more ability to do what they want during the 4th trend which is “The Sneeze.” This is when society is fully squeezed out, the classes are divided more into two and then “The Sneeze” creates many strong and tight niches. These niches are great because any buyer/investor can come in and buy low. It doesn’t matter if it is a home or a business, this is the time where the well prepared, not the rich, become increasingly wealthy.
During “The Squeeze,” people preparing for this, do everything in their power not to lose their money. This is when you will see rich people pull money from banks, transfer it into precious metals, and slow down on their investments. Again at this time, the poor do not become poorer, they are already poor, instead, the lower middle class becomes poorer if they do not do anything about it. Then in “The Sneeze,” there are already two classes, upper and lower with no real middle and now the upper class, who have been preparing for this, are able to become more wealthy than ever before while to lower class sits there wondering how this all happened and what they could have done differently.
So what do you do to make sure you are on the correct side? The $500 Millionaire wants you to know that he does not have that answer and can only speak from experience. The first think you need to do is find out what do you want out of the next 10-20 years. This is a very personal decision that the $500 Millionaire can not make for you.
Media- Study history and do not take anything in the media for what it is said to be. Do your own research to get your own answers. Find things that focus on truth, not opinion. The second a news story stats an option, shut it off.
Know you Rights- Read the constitution and understand what our rights are as citizens. As a citizen of this country the $500 Millionaire would love all of us to know what especially the Bill of Rights is in the constitution. The second any right is infringed upon, just see that as another red flag.
Financially- Save Every Penny you have. Do not stop living but start getting us to living on less. Have cash on hand. You do not need thousands of dollars but make sure you have some cash. Create a 12 month emergency fund (12 months of your monthly expenses) so if you lose your job or business, you and your family have some time to make a decision Look at the interest rates and uncertainty of the market and only put what you can afford to lose in the market. Start researching precious metals and the benefit of owning physical gold and silver.
This might seem crazy but the $500 Millionaire always tells you to be prepared for the worse. Paying attention to this stuff and doing anything to help prepare you will not take much time or money. In fact it will probably take away a ton of your stress. You are giving up the chance to take a risk and gain to insure that you do not lose. If you break even during these times, that is somewhat of a win. Worst case scenario is you have a large nest egg of cash to move forward once things start coming back around.
Again this is a very strange time of doubt and uncertainty but the one thing that the $500 Millionaire is certain on is that we need to take care of ourselves and we cannot rely on anyone but the ones we personally love and trust.
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