How to Overcome Looming Fears and Recession

TWT Newsletter #15

With the news and social media talking about inflation, the U.S. currency and debt ceiling, economic war, and a looming recession - no doubt it's not all sunshine and rainbows. Our political leaders and news outlets tell us a recession is coming, I personally think we are already in one or closing on the half-way mark. But only time will tell - which is why I recommend you focus on the controllables.

Like wearing a nice pair of noise-canceling headphones, tune out the noise and recognize there are opportunities for you if you have a positive mindset. This is merely a half-time show and I’ll tell you what I mean by that.

I watched an inspirational video that inspired this newsletter. And it was an interview with a multimillionaire who lost $100 million during the last recession.

He said his conversation with his coach/mentor changed his life.

The Conversation:

Coach: “If you're in a basketball game and you're trotting back to the locker room for halftime. The score is 3-87. And the other team is winning. What do you think?”

Multimillionaire: “How the hell am I going to win this game?”

Coach: “No, wrong answer. How are you going to play the second half?”

The conversation went into depth about what that meant, so I’ll save you some time. The condensed takeaway is to focus on what you can control and come up with an effective plan and strategy to play the second half. Because if you have a good plan, why worry?

So use this time to focus on coming up with a good plan and executing it.

For myself when developing a plan, I focus on the essentials - personal or business. Identify what is truly necessary for your business or personal finances to survive and thrive. This may mean cutting back on non-essential expenses, prioritizing cash flow and better personal finance management, and finding new ways to generate more cash flow (A huge one for me at the moment).

Another key component of a successful recession plan is diversification. It's important not to rely too heavily on any one source of income or investment. Spread your investments across a range of assets to reduce risk and increase potential returns.

For my investments, I am sitting on over 50% cash position now, trimming down my stock portfolio and trading only short term plays. Allocating the cash to new opportunities when they come such as Real Estate or Undervalued stocks. This allows me to be more nimble and diversify into new opportunities that come. As well as preserve for anything that may come up during this economic downturn.

My other focus is on improving my current streams such as stock trading. Paired with finding more ways to increase my income, it will allow me to be more creative during a period of constraint.

Be prepared to pivot quickly if necessary, and have contingency plans in place for different scenarios. This could include having a backup source of funding, alternative solutions to problems, and/or alternative revenue streams.

To the wealth builders out there: Have a good plan, stick with it, and focus on controllables.

Hope you learned and enjoyed my newsletter!

If you want to learn more about building a wealthier life for yourself through mindset and investing - subscribe here. Also, share with someone who might gain value from this newsletter. Remember you can make magic happen daily. Have an awesome day!

- William Thing