Hello, everyone and welcome back to a new video Shawn's name, and I am sick and tired of what's going on right now. Gyms are closed. Bars are closed, like water people in their 20s supposed to do right now. All we do is eat sleep, work out and party.

So now all we do is eat and sleep I mean. I know I'm trying to bulk but Wow. But what I want to talk about today is five mistakes that you need to avoid as we go through this economic crisis and as much as I hate to say it. We're gon na be in this crisis mode for at least another two weeks, if not another two months.

So, while money is about to get real tight, as the unemployment rate increases, here's some things you can do to set yourself up for success during this economic crisis and you notice I'm not using the word recession because we're not currently in a recession. Yet I say yet because will most likely be in a recession, but as of right now that I'm making this video, we are not in a recession. Yet we are definitely in an economic crisis, though, and don't forget that a ton of millionaires were actually made during an economic crisis because they didn't fall prey to some of the things we'll be talking about today. So, while lots of people make these mistakes, here's how you cannot make these mistakes, so you can kind of rise to the top during this economic crisis.

So here we go okay, so jumping into the number one reason or number one mistake: people make during an economic crisis is the fact that they don't cut their overhead soon enough. What do I mean by that? Well, when I say overhead, I mean things that we have to pay every single month, no matter what is going on things like your rent, /, your mortgage, your utility bills, your car payments, your student loans, your car insurance, your gym, memberships, Oh double your phone bill! Anything you have to pay every single month if you're still breathing so cut those things down ASAP. Most people will pay these things until they no longer have enough money to do so. Then they start to fall ting on their homes and their car payments and all these other obligations that they have.

So you need to cut it down as soon as possible. So you don't start defaulting on them. You need to understand and forecast what you actually need and what you can't afford. You do not need that $ 600.

A month, car payment, that's sitting in your garage right, now sell that sucker. It's a super simple way to lower your overhead, get yourself a cash car. That's gon na get you from point A to point B and it's gon na lower how much money you're gon na need to make every single month you can cut back on phone bills. You can cut back on utilities, you don't need that Netflix or that TV subscription.

You don't need a lot of the things that you're paying every single month on. So you can really significantly cut back on your overhead and it's actually a bonus. If you have some cash laying around maybe pay off some of that high interest debt, so then you even have less you're paying on every single month, because I promise you, your monthly take-home, is probably going to be going down as we work ourselves into this impeding Recession, I'm a huge supporter of living way below your means, whether we're in an economic crisis or not, which kind of leads us into our number two mistake that a lot of people make during an economic crisis and sometimes not very in economic crisis. But it's buying things that you do not need, and now I'm not talking about that $ 600.

A month car payment like we were just discussing, I'm talking more about once things start to go on sale, because a lot of businesses and individuals are gon na start struggling to stay afloat. They're gon na start selling things for pretty cheap and a lot of people are gon na, see those lower prices and go. I need to go buy that wall, it's cheap when, in reality, price is just a transmitter to display scarcity, the scarce or something is generally the higher price. It's going to cost someone.

So, let's think about some major extremes here think about finished goods that are incredibly expensive. You don't necessarily see them around every single day of your life. You know we're talking like Bugattis Pavan, these Maseratis karate, no, but seriously think about it. Our high-end items typically luxurious.

Yes, they are, but you also need to understand that the markup on those items are far greater than the less scarce items that we see every day. Things like water, eggs in you know, toilet paper well, bottom line. Those items are bought far more frequently than a freaking Bugatti, so there doesn't need to be as much margin on those items because lots of people are buying those frequently. So, while those examples are a little extreme think about once people start selling things for reduced prices, a lot of people are gon na want to buy them, and a lot of people are gon na.

Think oh we're gon na eventually get out of this economic downturn. So I'm gon na go buy that for a really cheap price right now when in reality you don't need those things at all to survive and you're. Really just prolonging this economic crisis plus you should never buy a depreciating asset during an economic downturn. It's one of the stupidest things you can do or you don't really need to buy, that super venti chocolate, latte, thingamajigger Unni from Starbucks bottom line, buy only the things you are going to actually need and that you're going to actually use because a lot of people Are going to buy things just because prices went down they're not going to use them, then they're gon na try to sell them, they're not going to get what they think.

It's worth. It's just a downward spiral, so only buy the things you need, but number three is a mistake. A lot of people overlook and it's to constantly better yourself and to improve the skills you have. This is going to make yourself much more valuable to your employer to avoid getting laid off and if you're self-employed same thing applies.

It's going to increase your skill set to allow you to adapt to what's currently going on, to stay afloat and to stay making money. Ultimately, if you can provide more value than the guy sitting next to you, then you're gon na stay in business, you're gon na keep that job you're gon na stay afloat. So that's the important thing is to constantly better yourself start taking online courses start reading books start increasing your skill set. I teach a bunch of online courses when I constantly get employers reaching out to see if they can get both discounts on my courses.

So why not skip that step? And instead of taking an online course, because you have to take an online course, because you want to to better yourself whether we want to believe it or not. Massive layoffs are coming, so it's really important to invest in yourself. My online courses are linked down below that's, not necessarily the only reason I mentioned that I mentioned that, because it leads us into our number four mistake. The number four mistake that so many people make is the fact that they rely heavily on one income stream, whether it's your job or whether it's a business that you run and while that's great and you can really focus on doing one thing and maximise on that.

What happens when you get laid off or your hours get cut, or just the industry that you're in doesn't make as much money now you're really screwed and you're gon na start struggling financially. So I always recommend get yourself one or two side hustles to produce some cash. So if something does happen, you're not as stressed out about putting food on the table. For me, I've got tons of side, hustles and kind of side producing income streams that, while it's not a lot of income, it's something that I can fall back on when something else slows down or when something else goes away entirely.

I've made tons of videos on side, hustles and some great ideas. You can do to make some side cash. As long as you can provide some sort of value, you can definitely make some side money and again during an economic crisis. It's gon na be huge to do something like that, so I'll leave those link down below.

But lastly, during an economic crisis, you do not want to panic, invest, which is what most people are doing right now. They are watching the Dow or the stock market go up and down tremendously thinking. Oh, if I were to drop $ 1,000 right here and oh maybe I'll short, these stocks are: oh, maybe I'll go back up tomorrow and there's so much volatility going on right now that it's not a good idea to panic, invest instead, you want to strategically invest Your money, during this time, strategically investing, isn't just buying a stock and going okay. Make me some money stock.

No strategically investing is developing a plan that is relatively low risk and that can yield some decent profits for you in the long run. So something I like to do is what I call playing the field. It's very simple. It doesn't require a lot of knowledge or a lot of balls in the stock market.

It's really simple. It's just buying. You know setting aside a hundred to a thousand dollars and buying some stocks, or maybe investing more in 401 K and just setting yourself on a schedule say every week. I'm gon na drop a hundred dollars into this, and I'm just going to do that for this entire economic crisis and then at the end of the economic crisis.

I might have stocke here and here and here and here and here before it starts going up. But my average cost on all that is somewhere in the middle and the stock market, always bounces back higher than it was before. So if I bought all of my kind of stocks, have this average cost right here and the stock market was here, then you know eventually it's going to be way up here and my average cost was a lot lower. Then it initially was you're gon na end up making some money, I'm no investment guru.

So I don't have the balls or I guess the desire is to try to risk my money. I'd rather go to a casino. So I just take a very safe approach to investing and I know eventually it's going to pay out and that's what I recommend a lot of other people do if you don't invest in the stock market for a living. Don't think that you now can once volatility increases in the market just play it safe.

If you can avoid these five mistakes that most people make during an economic crisis, then you will come out on top once we bounce back higher than we were before. That's pretty much it so if you enjoyed the video, I would really appreciate it if you hit that like button. Also, please share the video with a friend. It helps me tremendously and as always, if you haven't already, I would really appreciate it.

If you subscribe for more content like this always trying to release stuff, that's gon na put you in a better situation, but yeah that's pretty much it. I wish you all the best of luck during this economic crisis or this time that we're in and I'll see you in the next one.