Experience attests that life is full of risk, every day in every way.
Ego and spending commonly rise with income, asset prices and debt. But humility and personal discipiline are the attributes that most define our financial health over time.
It’s not what we make–in terms of income and cyclical asset inflation–but what we retain through a lifelong series of up and down cycles.
This is a critical insight that too few comprehend and is well articulated in Surviving a Recession is the Real Financial Superpower. Here’s a taste:
Anyone can get rich through a bull market or a period of prosperity.
You can keep getting rich in the short-term, but wealth is built in the long-term…
I don’t measure someone’s financial success during the good times. All you have to do during the good times is buy real estate or purchase stocks and you look like a winner… for a short time.
It’s whether you still have been financially savvy when the inevitable recession hits. That’s the true test. If you hold onto your assets during a recession you’ve done well.
If you are able to buy more assets at a discount during a recession, then you’ve learned something many people don’t: how money and careful investing works.
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