Today I’m going to discuss why I believe our approach to saving is all wrong.
Before we dive into the meat, I’ll give you a hint. Since March 2020, people were saving by force; very few of them before the pandemic had a strategic, systematic game plan to create a growing pool of capital that is there when you need it most.
I hope this blog post will be like Paul Revere’s famous ride in 1775 (the British are coming!) - I’m sounding the alarm that things have to change on your watch!
According to an article I recently read on the CNBC website, the rate at which Americans are saving hit a record of 33% as COVID-19 causes Americans to stockpile cash and curb spending.
Was the increase in saving an awakening where people realized they weren’t prepared for layoffs or was it because American’s discretionary spending came to a screeching halt, or was it fear-based?
Seeing how our favorite restaurants, movie theaters, malls, etc. were closed naturally, one would expect savings to increase. Was that the reason for the 33% increase in savings, or did people come to their senses and realize that they should start stockpiling money because there are always unknown forces operating in our new global economy? Was it because of the things we can’t predict or control?
Unfortunately, I don’t think so, and I believe that the savings increase was due to the fact that people were forced to stay home. For most, it had nothing to do with being better prepared for the unknown.
In 2016 my wife and I got blindsided, and it took a couple of years to rebuild a better foundation.
Because of that event, today, we help forward-thinking individuals nationwide and prepare for the unexpected so they can remain emotionally strong when the dam breaks.
WHY WE PREACH THE POWER OF A WAR CHEST
(Capital on Hand - C.O.H.)
C.O.H. gives you confidence. When you have confidence, you will make decisions from a place of power versus fear.
C.O.H. creates opportunities. When everyone else is shell shocked and climbing into a foxhole you can boldly capitalize on new opportunities. Warren Buffet, the most significant investor of all time, says, “buy when everyone else is scared to death and sell when everyone else is greedy.”
C.O.H. gives you staying power.There are always unknown forces operating in and affecting the market (e.g., Coronavirus) that can cause a recession. Families and businesses that die in recessions are the ones who have failed to accumulate capital reserves and have too much unproductive debt.
Having a War Chest (Capital, and plenty of it) naturally gives you a margin and a hedge (room to breath). Protecting your family and business, along with your future lifestyle and security, is paramount. If you do not have a War Chest, it could mean the difference between getting stuck working through your 80s or living the remaining years of your life with joy and little to no financial worry.
How does one go about building a war chest?
Since you’ve read this far, I am inviting you to watch my 60-minute online masterclass. In that class, I will detail how I can liberate you from insecurity, financial stress, anxiety, lack of clarity, and fear, just like I did for myself.
Your Freedom Matters,