In this blog post you’ll read about my take on the economic headlines currently filling the news, and what you can do about it. The economy might seem to be bad news but I’ve got some good news for you…
As a general rule, I try to not read or watch the news… And you shouldn’t either. Most of the time, the newsmedia prefers to splash scare-mongering headlines that become self-fulfilling prophecies, driving “groupthink” investors into a panic. And I just prefer to spend time with my family making memories with them (that’s a MUCH better way to spend my time).
At the same time, though, I’m also realistic and I pay attention to what’s going on in the economy (but I can do that without watching the news)… And so should you. I want to run my business so that it thrives when the economy is doing well AND when the economy is struggling, and knowing the direction that the economy is going is useful to make small adjustments in my business.
It seems like the economic signs are currently pointing toward a period of uncertainty (at least when it comes to the stock market and to job security).
No matter what you’re doing right now – whether you’ve got a job or you’re a business owner or a real estate investor – how can you prepare for what could be just around the corner?
Regardless of what you’re currently doing, the best thing you can do for yourself and your family is this…
Build A Base
You need to build a base of assets… preferably a wide base of income-producing assets.
Think of your financial freedom like a house: the strongest structure is built on a wide foundation of income-producing assets. This may include…
- Cash-flowing real estate
- Cash-flowing/income-producing businesses
- Products (such as infoproducts, apps, books, etc.)
The more of these assets you have, and the more steadily they produce income, the better. (You may also consider starting up a side business like freelancing or consulting to ensure that you have a steady stream of income, although I wouldn’t consider these to be ideal long-term assets since they don’t provide you with freedom.)
If you slowly acquire or build additional streams of income (even if they only produce a couple hundred dollars a month), it adds up over time – income stream over income stream, month over month – creating a growing, life-changing flow of cash to fund your ideal life.
Start by looking at what you have right now (such as investable capital in a savings account or IRA to invest in real estate or in a business) and what unique skill or knowledge you have right now (to provide the basis for an infoproduct or a consulting business).
If I were you, I would start building these streams of income right now, attempting to create or invest in them on a regular basis. Make a plan and start building them now. Even if the direst economic predictions don’t come true, you’ll still have these assets working for you.
