Recession & Investing, a blog about a blog.
I originally wrote this to share a link to a great blog I had just read, but it turned into a mini blog of its own, with some personal advice sprinkled throughout.
All credit goes to Mr. Stingy for his original blog and the inspiration it sparked.
Think of this as the warm-up act or supporting performance before the main headliner takes the stage.
Still reading, studying, learning, and growing.
For newbies in the world of investing, stock markets, and starting an online business, this is one of the most realistic articles I’ve read to date (29 May 2020).
(Despite a bit of profanity, which I personally felt was unnecessary to get his message across.)
What should your main priorities be right now?
First, focus on your job, your existing skills, and building an Emergency Financial Fund (see image above) in case your job or skills fail.
Second, I would personally add self-improvement skills — such as mindset, work ethic, discipline, etc. — combined with real financial education (think Rich Dad Poor Dad style).
Self-improvement and education are lifelong processes. But once you’ve built a solid foundation of knowledge and skill, you can begin your entrepreneurial journey while continuing to learn through real-world experience. As Robert Kiyosaki often emphasizes, you learn by making mistakes. You win some and you learn from some. If you understand why something went wrong and adjust, you won’t repeat the same mistake. You only truly lose when you give up.
Remember, we’re talking about capital that is left over after you’ve set aside your emergency fund. Unless you have a very good understanding of how to use debt effectively, it is safer to avoid unnecessary borrowing. Taking on too much debt could also wipe out the emergency fund you worked hard to build.
There is a fine line between being blinded by optimism and being guided by realism. You must consider all possible outcomes.
Success can be just as dangerous as failure if you’re not grounded and prepared. It’s not only about creating sustainable cash flow. In the end, our primary goal in pursuing financial freedom is to be happy. That can only happen when our purpose and goals also include physical, mental, emotional, and spiritual prosperity — a state of being that keeps us afloat even when the money is not flowing.
Oh yeah — here’s the link to Mr. Stingy’s original blog!
Aaron
Christopher
