If you're in your 20s right now and you've never actually seen a proper major recession, i suggest you stay with me on this video because i'm going to teach you seven simple rules which you can implement tomorrow to actually survive a recession and come out stronger at The end of it as if mindset manifests money and all this crap, that's horseshit. What manifests money is hard work hey. This is tom nash, and about 14 years ago i was looking for my first real serious job in the financial industry. I was out of college.

I was excited, i had all this education all this knowledge, all this motivation and i've seen the ones that came before me, get amazing jobs and make a lot of money and actually enjoy what they do and i was pumped about it. However, nobody picked up the phone, nobody answered, my emails, i barely got two or three interviews out of hundreds of applications. The economy was in the toilet, nobody was freaking, hiring now. Look i didn't have the best resume, it wasn't a 4.3 gpa.

I had a friend like that by the way he did find a job quite easily, but i mean i was a normal guy out of college with good 3.8 gpa university of michigan good resume, and i couldn't get a callback for the life of me. Eventually they called me from ey ernest and young and ey actually wanted to give me an interview. I went for the interview two gentlemen. Was there, i had an amazing interview.

In fact they told me hey you're. Moving on to our dc interview, i went to dc. I interviewed with the guy over there had an amazing time and i was supposed to get the offer a week later. The guy actually calls me and he's like half in tears and says, look i'm sorry.

We would love to get you on our team, but there's a total hiring freeze right now, and it has nothing to do with what you are and how we are we're not going to hire anybody, because we literally corporate says we can - and this was not unusual - Now this was brutal for me because i didn't tell him how things were really bad for me, but i was literally out. I had no other options now. Luckily, luckily, i got an opportunity to work for an investment bank and later on in the fund and later on, you know things kind of picked up. I somehow stumbled my way out of this into a really good job which absolutely suited my skill set and launched.

My career, but i saw a lot of my friends struggle and actually still to this day, i have this trauma in my head, which i'm carrying from those times, and i learned a lot of tricks because i've seen how 2008 and 2000 looks like more. I think 2008 because i was in my late 20s and i know how to survive this. I know a lot of my viewers are my age or older, so you guys know exactly what i'm talking about, but you can also watch this video because it's kind of going to refresh you on what's going on. But if you're in your 20s right now and you've never actually seen a proper major recession, i suggest you stay with me on this video, because i'm gon na teach you seven simple rules which you can implement tomorrow to actually survive a recession and come out stronger At the end of it, and in case this is your first time on this channel, you should know: there's no upsell at the end of the video, i don't have any courses to sell any pdfs which you can download.

If you give me your email, there's absolutely free information for you to use enjoy, and hopefully it will benefit you now. As always, i only click on one thing here, which is my sponsorship with ftxus: either that don't click, nothing, don't smash, nothing don't buy nothing except ftx, us a quick 30 second message from them and then we'll go back to the video. Now this video is sponsored by ftx us. It is a u.s regulated, cryptocurrency exchange.

Now you can also trade stocks on it. It literally has the best fee structure in the business. It's the cheapest, most effective, the ux ui, the user experience is absolutely unbelievable. They don't actually sell your data to anybody.

There's no payment for order flow whatsoever, use the code below tom nash when you click on the link in my description, section and you'll get a free crypto. If you trade over ten dollars. Let me know what you think about it. Let me know your experience is good or bad i'd love to hear it, and now, let's go back to the video, now look right now we have the federal reserve trying to fix this inflation problem and they're trying, but the problem is that they only have limited Blunt tools for this: they don't have precision, scalpels and stuff, like that, like surgeons, they have to beat the economy to a pulp, to kill demand for inflation to stop.

Unfortunately, it is what it is. They will tell you about it soft landing, but there's no such thing. You cannot kill the patient and get them to be alive. In the same time, it's literally not possible, so they will not tell you that we are in the recession until we're deep into it.

Just like they didn't tell you about inflation, they told you it was transit or remember for a long ass time until everybody absolutely knew so they will not be honest with you, but i will now look. A recession is not pleasant. In fact, it's kind of ugly people lose their jobs, they don't have any money, they start defaulting on car payments on loans on mortgages, foreclosures evictions, it's pretty ugly. You have to be prepared for how insanely unpleasant this experience will be by following the seven rules, which i'm about to tell you right now now number one is absolutely imperative for you to implement.

This is probably the most important rule. You have to start running your personal finance as if your business, meaning you have to do your own balance sheet, how much assets you have, how much liabilities check what your ratio is assets to abilities? Is it healthy? Are you solvent now? The next thing you do is you actually prepare a cash flow statement? How much money you're spending every month, how much money you're bringing in are you cash flow positive? What's your free cash flow margin? You have to know these things. Then you actually go and you look at your actual finances. You basically need to understand: hey.

What's my budget for this month, what's my budget for next month, what's my annual budget and every single month, you have to match the budget to how much actually you spent and made so you follow the budget every single month and you keep track of how things Are going, are you on budget? Are you exceeding budget? Are you doing better than your budget? You have to be on top of it every single month. There's absolutely no way for you to avoid this. You have to be your own auditor and be kind of a pain in the ass for yourself now look. The second thing is, you have to reduce spending, there's no two ways about it, but the second thing you need to do is control your spending, regardless of the budget.

You have to get your spending under control, i'm sure a lot of you heard about. Graham, stefan, you know the finance youtuber that if you mention his name in the videogram, stephen graham stefan, the algorithm graham stefan, actually takes your video and makes it graham stefan better. So i'm just kidding no look. Graham stefan jokes, aside love.

You graham graham stefan, actually went on record saying he only drinks coffee from his own kitchen. He doesn't spend money on starbucks and coffee outdoors now. This is a millionaire right and he was saying this during the most bullish market ever a millionaire drinking coffee at home, because it's more efficient. Why would you spend so much money on coffee when you can actually make it for free at home, going to save hundreds of dollars per month for absolutely no reason to spend it now? Coffee, just one example, learn to cook: don't buy that are expensive.

You know taking out food is actually super, expensive and unhealthy. Just you know, get some food in your house make some pasta make some. You can cook learn to cook my guy. I mean it's not that complicated.

If, graham stefan, the millionaire can do it, you can do it too. The third thing you absolutely have to do is reduce leverage. You have credit cards which i'm sure, you've actually maxed out at least once or twice in your life. This is the time to get rid of this debt instead of buying the new ps5 or the new game or whatever it is you're.

Looking for right, you have to actually start thinking about this as your priority expense right now. Look at your credit card and fair. The way to kill any sort of debt as fast as possible, the credit cards have to be at zero. Zero, that is about to become more expensive interest rates, are going up.

You're gon na be paying much more for this debt. So your priority right now is just to spend as much money on killing your debt as possible go to zero as far as your credit cards be absolutely out of debt as much as you can now, i'm not talking about student loans and stuff like that, which Are more elaborate and they go over for years and years, sometimes decades, i'm talking about regular straight up credit card debt get rid of it. It is absolutely literally the worst time into increasing your fixed expenses. Now in the business.

Much like for individuals, fixed expenses are a killer. Those are the payments you make on your business and for your own self. Personally, even though you're not making any money you know. Rent, for example, is a fixed income.

Sorry, for example, rent is a fixed expense. Car payments - you know stuff like that, so this is not a good time right now to get into a mortgage which actually will cost you more so buying a new house right now, renting a more expensive apartment buying a car that has more payments on. It is not a good time because you're gon na be increasing your fixed expenses and a time of uncertainty right now is the time to leave below your means. You know the guy strongman finance chris, the certified cpa belly.

Now. This guy has quite a lot of money, he's not poor. He has multiple streams of income and he's actually driving a fourth fiesta. Now i don't know if you've ever seen a fourth fiesta in your life, but this is literally just one step above a hugo.

However, this one step of a hugo is a car he already paid for years ago. It literally cost him nothing and he absolutely is living below his means as far as the car he's driving. Why? Because that's smart in the recession, that's exactly what you're going to do. You think he can't buy a more expensive car sure he can.

What would be the point and talking about strongman personal finance, one of my favorite youtubers on the planet and the guy? Who actually makes fun of me quite regularly by calling me pognesh? I can really see the resemblance and chris is actually talking about my next rule. Quite a lot, which is diversifying your income streams. If you lose your job and you absolutely have no money coming in from any other sources, you pretty much screwed and you have one single point of failure. That's not good and there's a lot of different ways to diversify your income streams, one that comes to mind.

If you know how to do stuff because of your work, for example, you can actually do it privately on places like fiverr, you can lease out your time. Get income from there build up your profile, eventually, you'd be surprised. I have friends who make thousands of dollars per month working on fiverr, probably a couple hours a day doing things they already know how to do for other people. It's just one example.

There's plenty more! That's not the only example. This is also a perfect time to increase your cash reserves. Now i know people are banging the inflation drum telling you cash is not good right now. Cash is not good right now, but trust me if the market goes to a recession losing 10 percent of your cash on inflation as far as net real purchasing power is not going to be the worst.

So that's why increasing cash reserves right now is literally something you absolutely have to be focused about. The other thing i want you to pay attention. Is you need to invest in yourself when i was a kid my dad told me an important lesson. He told me look, people will pay you based on how rare the thing you can do is if what you're doing can be replaced by any idiot on the street you're gon na get paid like.

But if what you're doing is a unique skill set, which like a liam neeson, can only replace you remember that movie, that is something people will pay more for the more unique your skill set is the more money you can make by having a job doing that. Now i know that sounds ridiculous, but you can improve yourself. You can take courses, for example, if you're a cpa, you can get new accreditations if you're in finance, you can learn new skill set. If you were in any sort of industry, you can always take professional courses.

Do not take these internet scammer courses, you know when they, oh the 10 ways to perfect passive income in 15 minutes. You know for 1500 a month do not fall for these internet schemes. I'm talking professional courses, they're, usually very cheap, actually require some work and there's no results guaranteed. But you can improve your own skill, set to make yourself more valuable to your employee and actually being able to demand a higher salary, which is something that will absolutely be needed in this kind of environment.

Right now - and my last point kind of makes me cringe a little bit because i hate when people talk about mindset and money, as if mindset manifests money and all this crap that's horse, what manifests money is hard work. However, i do want to point out one important mindset tip here. You cannot panic it's exactly the same as any human interaction, energy matters. So if you go to a job interview - and you stress the out - you're, not gon na get the job, no matter how good you are.

If you go on a date and you stress the out, you're, not gon na get laid, no matter how much you're good. Looking and successful you have to relax. This is the time to be more vigilant, to be more responsible to be more cautious, but not to panic. If you panic, you're going to make stupid decisions, and this will cost you mental energy, emotional, energy and you're going to make even worse mistakes, my body who's literally like a brother to me, like the brother that never got anywhere in life.

I love him to death, but he's not the sharpest tool in the shed. You know who i'm talking about now. This guy went on a date a few days ago and i've been preaching to him all the same rules. I just told you right now and this had a date with a girl, and it was nice and you know it ended with a nice hug.

He texts her the next day asking if they can go on the second date. She says: no, i don't feel it. I'm sorry, i don't want to lead you on so he asks her. Did you know when we had the first date immediately and she said yeah, i'm sorry.

I didn't want to lead you on, so this tells her to send him half the bill because now he says you should not have agreed for me to pay for the entire day, so he literally got her to cash at him. Half the money and right now, i'm going to tell you exactly what i told this dumbass now i understand being responsible, financially and preparing for a recession, but it doesn't mean you have to be a douchebag and behave not like a gentleman causing yourself mental pain, sending Negative energy away, because what ended up happening is this girl absolutely said nothing to him, but he felt like honestly, he deserves it, so he couldn't get any sleep. He got into this crazy, annoying story where he tried to cash appear the money back. It was just a a week of his life, went down the drain dealing with this nonsense, because he just panicked and overreacted stay on track pay for your date.

Get laid. Do other stuff go to movies relax, it doesn't mean you have to go, live in the bunker right now. That's not what i'm saying stay on course. Stay with your life just become more responsible, more countable.

That's it now, as always huge thanks for ftx us for sponsoring this video. The link is below don't forget to click it codename tom nash, for that benefit, as always a huge thank you for my channel members and subscribers and the patrons. Of course, we cannot forget about them five dollars per month. If you want to support this channel, the link is below i'll, see you next, video.