99.99% of people don't understand why recessions happen.

Here's what you need to know: Before we proceed, check out this video from my sponsor: Visual Sectors!

It goes through 3 strategies used by successful investors to time the market with incredible success.

15 years ago, Lehman Brothers filed for Chapter 11 bankruptcy.

In the following months, the S&P 500 lost over 30% of its value.

This led to one of the worst recessions in history.

Let me explain what happened: The 2007-2008 financial crisis, known as the Great Financial Crash (GFC) was an economic crisis that started in the United States and quickly spread globally.

It was caused by a combination of factors, but most importantly, it was a result of irresponsible lending behavior.

The US Dollar will eventually fail as a global reserve asset.

Let me explain why:

(THREAD 👇) Exporting means selling goods and services from one's home country to a foreign country.

Importing refers to the purchase of foreign products and bringing them into one's home country.

When a country exports more than it imports, it's left with a trade surplus.

When you invest in the S&P 500, you are buying stocks from 11 different market sectors.

Let's break each one down: TECHNOLOGY: Companies involved in the development, manufacturing, or distribution of tech-related products and services.

HEALTHCARE: Pharmaceutical companies, companies that produce or distribute medical equipment, and companies that conduct health care-related research.

If mortgages didn't exist, life would be a lot less expensive.

Let me explain: Let's start with the basics:

A mortgage is money borrowed to finance a home.

When someone "owns a home," it's very likely that they borrowed money to buy it.

A financial institution bought it for them, and the owner pays back the debt over time.

The most impactful book I've read is Mindset by Carol Dweck.

It helped me to:
- Approach challenges comfortably
- See failure as personal growth
- Believe in myself

Here are seven valuable lessons I learned from Mindset: 1) Fixed vs. Growth Mindset:

"Mindset" introduced me to the concept of fixed and growth mindsets.

Fixed Mindset: Our abilities are fixed

Growth Mindset: Our abilities can be developed and improved through dedication and time investment

A mortgage is "good debt"

BUT

You shouldn't buy more house than you need

Here's why:

(THREAD 👇) Bigger payments:

Every $100k of mortgage debt you take on is an additional $500+ monthly payment you'll have for 30 years.

If this $500/month was invested in index funds, in 30 years you would have a portfolio worth ~$1m AND a paid off house.

Easiest way to invest: BUY INDEX FUNDS

It'll take you 30 minutes to set up your account, and you can start with as little as $1.

The problem is that there are thousands of funds to choose from.

Here are some that can work if you have a 10+ year time horizon:

(Thread 👇) First of all: what are index funds?

An index is a list of assets.

An index fund is a basket of assets that mirrors an index.

Index funds list assets based on certain criteria.

If you don't understand these two concepts, building wealth becomes virtually impossible:

(THREAD 👇) Concept #1: Sunk costs

Concept #2: Opportunity costs

“90% of all millionaires become so through owning real estate.”

- Andrew Carnegie

Getting a mortgage is the only way for some people to buy real estate.

Let me explain what mortgages are, and how they work: A mortgage is a loan secured by real estate (physical land and buildings).

This means if the borrower stops paying their mortgage, the lender can sell the property to recover their money.

Not everybody should be buying assets.

Here are some things you need to do BEFORE you invest a single dollar in stocks, real estate, and Bitcoin:

(THREAD 👇) Learn the difference between opportunity cost and sunk cost.

Understanding these concepts will help you to make better decisions in every aspect of your life.

"If you can't find a way to make money while you sleep,

you are going to work until you die.”

- Warren Buffett

Earn passive income by making your money work for you.

Here are 5 sources of passive income that ANYONE can build: First of all:

Passive income is income earned from your efforts in the past.

Active income is income earned from ongoing efforts.

Use active income to increase your income from passive sources by purchasing or building assets.

The Federal Reserve announced a 0.25% increase to the Federal Funds Rate.

We are now at the highest interest rates in 22 years.

You will be directly impacted by this.

Here's what you need to know: Let's start with the absolute basics:

As demand for something goes up OR supply goes down, prices rise.

As demand goes down or supply goes up, prices drop.

Fiat currencies are debt.

Let me explain:

(THREAD 👇) Anyone holding the US Dollar, Yen, Yuan, Rupee, etc. is holding the debt of a specific country or region.

For example if you hold 20 USD, you would be able to get $20 worth of goods. That $20 bill ensures you receive $20 of goods.

If you don't want your kids to be broke,

teach them these important money lessons:

(Thread 👇) 1) Cheap vs Frugal:

Cheap: focus on price

Frugal: focus on value

Dividend Aristocrats are companies in the S&P 500 that have increased their dividend for 25 YEARS STRAIGHT.

These are some of the more attractive dividend stocks to own.

Here's a list of all 67 Dividend Aristocrats as of TODAY: 1-10

Your CREDIT SCORE shows how risky it would be for a lender to let you borrow money.

5 key components make up your credit score. Let's break each one down: 10% = Public Records: Details about bankruptcy or collections

Avoid missing payments and make sure not to default on your loans.

Some graphics showing you how money works:

(THREAD 👇) Types of stocks you can buy

Most people are going to miss the biggest wealth transfer in history because they don't understand how money works.

Anyone without a plan is going to regret it in 10 years when they're priced out of everything.

19 topics to focus on so you're not left behind:

(THREAD 👇) 1) Your decisions compound over time

https://twitter.com/rajatsonifnance/status/1670024753040506880?t=sxFOsS_JOSaqacxScSbIfQ&s=19

If you want to build wealth,

you NEED to know these 8 personal finance rules: 1) 7 Day Rule:

Wait 7 days to buy "wants" (not "needs"). This will help you avoid impulse purchases.

Use the wait to research the product, find a bargain, or avoid letting your emotions make the decision for you.

Waiting before making a purchase helped me save a LOT of money.

“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn't … pays it.” - Albert Einstein

Compounding works just as well AGAINST you as it works FOR you.

Here are some daily decisions that will help or hurt you in the long term 👇 First of all: Compounding is building on top of what's already been built.

For example:

- Earning interest on top of interest that was previously earned
- Building new knowledge over knowledge developed in the past

Every tiny contribution makes a difference in the long term.