How to Become a Millionaire during the 2023 Recession.

hey everyone me Kevin here this is a

message to all investors in my opinion

what going forward we should be thinking

about to make sure we can maximize our

wealth going into 2023 so rather than a

financial news update in terms of what's

going on today I believe the information

in this video will be quite useful for

you for many months in the future now

keep in mind even though I am a licensed

financial advisor I can I give you

personalized Financial advice so we'll

call it generic Financial advice okay

let's get started so the first thing

that I would consider right now where we

are at the end of 2022 is there is a lot

of fear and uncertainty and doubt in

markets and the very first question you

have to ask yourself is do you have the

faith that our economic structures will

be stronger and better for the rest of

the decade than they are here in 2022.

now of course there's the possibility

that things may get worse before they

get better and I think people are 50 50

on that and that's okay but I I would

say probably 90 percent of us watching

agree that well you know things will

probably end up working out okay so we

have to position ourselves in such a way

that we get to be a part of the rebound

and I think that's the most important

thing for us to think about right now is

not uh what's our net worth today

compared to last year rather what can we

do today with whatever we have or

whatever's left and make the best of it

so that when that next upswing comes

you're on the right side of that upswing

think about this let's say you had a

really high net worth in 2006 and all of

a sudden you're in 2009 going well damn

this sucks the worst thing you could

have done would have been to give up to

stop working hard to get out of markets

and sit on the sidelines because you

would have missed the run from 2009 to

potentially

2021. in fact when I started making

YouTube videos well I made my First

videos back in in 2010 and 11 and some

throughout 13 14 15. but when I really

started uh more full-time working

YouTube was around 2017 18 19. and boy

oh boy every day there were folks

complaining about how terrible things

were in the economy and how investing is

horrible and of course some of the best

investment returns ever were made after

that 2019 towards the end 2020 2021 the

entire bull market that we've had

essentially since 2009 and really the

the fact was investing in America was

always the best choice and not trying to

trade America but investing in America

for the long term was the best choice

whether that was through real estate or

through stocks or whatever investment

you're making into yourself and so I

think as investors one of the first

things that we want to think about as we

get towards the end of the year here is

okay practically how can we prepare what

should we potentially consider doing

next so one of the first things that

frequently is done in the November

December season is we start thinking

about minimizing our taxes for 2023 and

one of the things that I really want to

caution against is the desire to spend a

lot of money on equipment or you know

expansion towards the end of this year

where you're going to be hooking

yourself into

substantial monthly payments for 2023. I

think you want to go into 2023 with as

little overhead as possible let me give

you a few examples so sometimes what

people do towards the end of the year is

they spend a lot of money on solar

systems for their home and they

calculate a seven year Break Even well

you do that your you're you're

potentially tying up a lot of capital

towards the end of this year where

markets may be close to their bottom for

the sake of a seven year break even and

if you figure we might be on a more

upside trajectory sooner rather than

later you might want to have more of

that liquid available for other purposes

so I'm not a big fan of at this point in

the cycle making big investments in to

your home I think some of the worst

Investments you can make right now are

into your home a new kitchen a bathroom

remodel batteries for your home solar

panels now is not the time for that wait

for the tax credits to come out over the

next few years and wait for some of

these companies to start begging for

customers rather than us begging for

them you look at Generac and face people

are begging them to get these products

right now now's not the time to do that

you look at another tax deduction people

like to do towards the end of the year

especially businesses is they like to

buy boats planes and cars especially

cars over six thousand pounds uh planes

up to any amount of money and uh

although that's really going to appeal

to a very small percentage of people and

and boats up to a five hundred thousand

dollar deduction in general when you

look at that it's like well wait a

minute those are some big deductions I

could get I mean you could write off 100

percent of a plane on your federal taxes

you spend 10 million dollars on a plane

you you could Offset you could basically

save four million dollars in federal

income taxes it's insane I mean

obviously talk to a CPA about all this

stuff but what you do when you hook

yourself into these big expenses cars

boats planes is you're setting yourself

up for a big load of debt in 2023 so

you're gonna get a nice tax benefit but

now you're setting up yourself for debt

that you're going to carry into 23 4 5 6

and what happens then well now your debt

to income ratios are skewed and it's

harder to get into real estate in the

future it's harder to finance things

that are actually going to make you

money in the future rather than what we

call butter purchases now people

regularly like to justify butter

purchases because of the tax write-offs

but you have to be very very careful

because those tax write-offs help you

for one year even though you might be

signing up for 7 10 15 30 years of debt

so you have to be very careful with that

now uh so I'm not the biggest fan of

spending a lot of money at the end of

this year because I think this is more

of the time where we want to be thinking

about positioning ourselves income wise

and business-wise and investment wise so

what do I mean by that okay so if you

are employed or you're a self-employed

entrepreneur my opinion is you want to

be in a situation now where the first

thing you do is you solidify your

primary source of income you might not

be able to do that you could be in a

business where your income is uncertain

for example I don't know uh what YouTube

is going to pay in YouTube ad Revenue

next year so I have to be even more

careful with decisions like hiring and

spending and monthly payments because I

can't be certain what my income will be

in the years in the future that's

different if you have a salary though if

you have a salary you have the risk of

potentially getting fired so you've got

to evaluate okay what happens if my

income suddenly plummets you don't want

to be stuck uh you know drowning in debt

up to your eyeballs because now it's

going to be very very difficult for you

to actually be a winner on the upcycle

right and we want to be winners on the

the upcycle so

securing your income securing your

number one primary source of income is

probably the most important thing to

consider now and ask yourself how can

you increase that form of income if you

are someone who is a salary one thing

that you could consider doing is

starting a side hustle this is actually

something we talk a lot about in the

elite Hustlers course which comes out on

Black Friday of course all the programs

I'm building your wealth link down below

are having a 60 off sale for Black

Friday this is the best pricing you're

going to get the pricing will never be

lower and we're adding a bunch of new

lectures not only is the elite Hustler's

course coming out on Black Friday but uh

the existing courses are also getting

free updates so if you're already a

member you'll get the benefit of that

always increasing book of content but we

have to think if you are on a salary

something you might consider actually

doing is starting a side hustle that is

actually going to produce income for you

you don't have to spend a lot of money

on a side hustle a lot of people the

first thing they do when they think side

hustle is they think oh okay I need to

go out there and I need to start

spending money on attorneys and I need

to get CPAs and llc's going and I got to

do all this crazy stuff look when you

start a side hustle you go to hiscox you

get some insurance stop worrying so much

about the liability do the right thing

but focus on making money when you focus

on making money uh and actually

increasing your income on the side now

you can also take advantage of uh tax

benefits that might only be applicable

to entrepreneurs rather than uh someone

who's salaried right you'll be able to

offset uh some of your expenses for

things like uh whether it's phones

whether it's computers or whatever you

can take many more tax benefits as an

entrepreneur than as you can if you're

on a salary so consider that that

doesn't mean you want to lose your

primary source of income in fact the

most important thing you want to do is

strengthen that number one source of

income remember that a lot of folks when

they get excited about something new

like a side hustle they forget that wait

a minute my first income is paying me

let's say eight thousand dollars a month

but I really love my side hustle it pays

me 500 a month yeah but how much harder

is it for you to go from 500 a month

from your side hustle to two thousand

dollars a month which is an extra

fifteen hundred dollars then how much

harder would it be to go from eight

thousand dollars to maybe ten thousand

or eleven thousand dollars of income

right usually it's easier to increase

that first line of income and I'm a big

fan of focusing on increasing that Top

Line of income and one of the things to

remember is many many many jobs will pay

you oh it's loud over here many many

jobs will pay you over six figures if

you just have a license that nobody else

is willing capable or able to get think

about it you go get a series 65 license

since you could immediately start

working for a registered investment

advisor and you'll get educated by them

right but you start learning how to sell

investment products and managing other

people's money of course you'll work

under somebody else like you're working

for a broker like a real estate agent if

you uh get yourself not only a series 65

license but you become a CFA all of a

sudden now your your next level on on

finance or Wall Street uh but that's not

even so necessary I mean there are

people who uh become you know they go to

nursing school for a couple years and

they get into

anesthesiology and these uh nursing

anesthesiologists they make sometimes

they start out at 200k a year and then

they're going to three 400k so

personally I always think now is the

time where you want to be thinking to

yourself wow how can I expand my income

now uh and in these dark times how can I

increase my value to my employee or

employer or to myself and I think

oftentimes we forget that it's not just

about asking for more money it's about

providing more value to your boss or to

your own company and having more

certifications or licenses to justify

more income so so that's something I

would consider next I believe as an

investor once you've secured your income

you've lowered your expenses you're not

going crazy with with uh you know trying

to spend money on assets that are

depreciating assets you know butter as

we call them things that Melt Away over

time once you get away from that you

really want to be thinking in my opinion

of investing where it makes sense for

you if you're an older individual that

might be investing in treasury bonds

take the guaranteed four and a half

percent you can get right now on some of

these treasury bonds ladder a portfolio

it's very simple to do go to Treasury

direct.gov and you can learn a lot about

investing in treasuries and getting a

risk-free return you could lock in a

10-year bond that consistently pays you

a 3.75 right now it's absolutely

remarkable uh and the cool thing is you

don't even have to worry about Market

risk if you're willing to hold those

bonds to duration which just means

until the bond is done right then you

get fully paid out it's really really

incredible so I'm a big fan of if you're

looking for some kind of passive income

right now that's secured and you don't

want to be subject to the market Madness

treasury bonds and you know what if

inflation comes down and these bond

yields plummet then you can actually

probably go to the market and dump these

treasury bonds for a profit you know now

you're trading bonds uh which is really

incredible now uh if you have a longer

term Horizon five plus years not a bad

idea to spread yourself into what I like

to do index funds I'm the biggest fan of

of people investing in index funds

because of the tax benefits of

rebalancing and I think a lot of folks

forget this but ETFs have a really

really unique Advantage where if an ETF

sells a stock that has gone overweight

like let's say Apple's gone overweight

and the ETF sells that they can trade

that for a different stock and not pass

on as many or potentially any at all

capital gains to the individual investor

so if you find an ETF that somebody

manages that you really trust it's

actively managed or you just find a

passive ETF these are great vehicles for

making sure you're not getting

overweight and you're not getting in

certain stocks and you're not

experiencing really heavy capital gains

events because those take a lot of money

away ideally best case scenario you find

an ETF that you can hold forever and you

never have to sell the thing and then

you never have to pay taxes the inside

of the ETF can be traded for different

stocks but you never pay taxes because

you're not selling that ETF really

really interesting opportunity in uh in

preventing taxation of course again we

talked about tax loss harvesting a

little bit I think there's definitely an

opportunity to do that towards the end

of the year here but ETFs are a great

Tool uh personally I'm I'm a little bit

uh you know I invest a little bit

differently but but I think my Horizon

is is 20 30 years my risk tolerance is

different and I would never advise what

I do personally to anybody else I'm too

heavy and individually chosen stocks and

that comes with a lot of risk a lot of

volatility and I don't think for folks

outside of the financial industry that's

actually even within the financial

industry I don't think that's a good

idea for anyone so but what I do think

is a good idea for almost everyone is

after this getting into real estate so

real estate I would say we probably have

some patience ahead of us I would likely

wait until mortgage rates get back into

the four percent range I think that's

going to be a buying signal for the real

estate market and I believe it's

critically important that everybody gets

started

with buying their own home now there are

a lot of people who make fun of the idea

of buying your own home and they say oh

buying your own home is is a terrible

investment and they're actually not

wrong it can be it can be a terrible

investment because what a lot of folks

do is they buy their own home and then

they remodel it like they're going to

live there forever like it's their

forever home and they waste a lot of

money it's very very stupid to do that

uh spending money on your home is is

pretty dumb you should be spending money

to fix it up to a rental grade level and

then what my wife and I always learn

what we always told ourselves was yeah

if there's something we didn't end up

doing in this home we just say next home

we'll just do that on the next home and

then you just hop around you do

something known as bank hacking the way

that works is you borrow 95 to 97 of the

property that you're buying as long as

you can afford the payment substantially

for the payment buy something much

smaller than what you need if you're

living if you're renting a four bedroom

two bath right now get yourself a two in

one okay you and your your girlfriend or

boyfriend or whatever and live there for

a year fix it up and plan to move after

a year to a three-in-one move again to a

four and two you know or three and two

and then a four and two and keep all of

the homes and make your goal over the

next 10 years buying five homes just

move every couple years it's not that

difficult to do and if you can do it in

a way where your payment is lower

decently lower you know two three

hundred four hundred dollars lower uh

than what you could get in rent now you

can cover your expenses for a couple

hundred bucks a month for maintenance

and repairs but also for property

management so now you can really focus

on building Equity now this is what's

really important here is that you

remember there are two phases to life

there is the cash flow phase of life

this is when you're in payoff mode when

you're in payoff mode is when you're

getting ready to retire right so you're

ready to retire and just go cruise

around the world and you just want

passive income you don't care about

speculation you just want passive income

in that phase of life it makes sense to

to pay off your mortgages as soon as

possible lower your monthly net but for

most people watching this channel I

would say ninety percent of us watching

right now I would focus on maximizing

the amount of real estate debt that you

can get your hands on now I know that

sounds crazy because people hear oh my

gosh that you know that's so terrible

you don't want to be in debt well the

beautiful thing about maximizing real

estate debt is these properties ones

that are cash flowing are being paid for

by your tenants and that means every

single month you are doing what's known

as passively Building Wealth through the

power of principal pay down and if you

can get a good deal on top of that you

follow the steps in the zero to

millionaire real estate course you buy a

wedge deal even better you get an

instant instant boost to your net worth

which is an incredible opportunity with

real estate insta boost your net worth

uh but you want to be in a situation

where every single month

your net worth is going up by doing

nothing that is a beautiful thing that

you could do with real estate you do

absolutely nothing your net worth goes

up every single month just because your

tenants auto pay their rent and you auto

pay down the mortgage so simple now a

lot of folks respond to that and say oh

but Kevin what if your tenant stops

paying rent look this is where you have

to be prudent with property management a

lot of people aren't a lot of people

suck at Property Management I hate to

say it but I would say most people 90

plus percent of people just suck at

property management and what I would

highly encourage that you do is don't do

what most people do most people are like

oh I'll do Property Management myself

and then in the future I'll get a

property manager no learn from a

property manager first get a property

manager first learn the ways of the

industry learn about screening folks

with credit learn about making sure that

you're getting quality tenants and then

after you found that out after you've

learned how property management works

then maybe consider taking over or not

or just keep a property manager but

screening tenants is the most important

thing because they hold a large portion

of your net worth and you want to make

sure that you're not getting screwed so

this is a long-term perspective right my

view is very much that as a long-term

investor you want to make sure that at

this point minimize your expenses limit

those those expenses on uh on equipment

on hiring on monthly fees educate

yourself so do spend money on yourself

on licenses certifications education and

prepare increase and secure your income

but also make sure you're ready to get

into real estate if you need passive

income treasuries and diversify in

stocks especially use that ETF act

thanks for watching folks check out the

links down below we'll see you next one

bye