The credit crisis and what you can learn from it

Boy, did you see the stock market plunge a whopping 778 points today? Unless you have been living under a rock, you have heard about the credit crisis and problems it is creating for financial markets, unemployment rates, and our economy as a whole. Every day now I praise the sky that I don’t rely on a job anymore. But millions are still in the rate race, just spinning the wheel. Most people don’t have a financial buffer (3 months of living expenses or more) set aside for the event of a jobloss or unexpected expenses. Usually these folks go bankrupt or or foreclose their home when disaster does strike.

This is the very reason passive residual income from an investment, real estate property, or a network marketing business is so important. It continues to bring in income even when you’re not working. If you take it serious it could significantly exceed any W2 type employment.

Employers and politicians obvisouly don’t plan for your longterm survival, this is entirely up to you. You are not getting a bailout friend. Henry Paulson and Ben Bernanke are chasing their own tails trying to get this $700 billion bailout passed. These men clearly don’t have the foresight of men like Robert Kiyosaki that predicted the order in which the banks would fail. Or Jamie Dimon, CEO of my former employer JP Morgan. Jamie got out of subprime in 2006, a very unpopular decision questioned by many on our board because the market was hot and everyone was making billions. Jamie saw what was happening and he sold it all; now they have the cash to buy up all their failing competitors. For this very reason I kept at least 10% of my total portfolio in JPMC stock!

When things settle down (and they will), we will hopefully come back a little wiser and realize every bubble does burst. I guess the lessons from the dot come bust were not quite enough. Maybe you will also have a plan B like me. I don’t limit myself to one plan B either, I am into network marketing, writing, real estate, and a retail business. Whether I get up this morning or not, they bring in cashflow. Don’t get the picture still? Play Robert Kiyosaki’s Cashflow 101 and learn how you can take charge of your financial destiny by enhancing your financial IQ. Ask me about it sometime.

Take care and hold vast fellow investors!