Does Your Plan Work In Good Times And Bad?

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[The following is a partial transcript of this episode of The Scott Alan Turner Show. Listen to the full episode to hear this story, listener questions, money hacks, and inspiring stories of people that are changing their financial lives. Subscribe to the free podcast on iTunes or Google Play]

On the radio this weekend I was listening to a real estate show, and the entire show is about getting people to invest in real estate buying the classes that were being sold. You know the ones, the late night infomercials where you can get rich in real estate with little to no money down.

The guest said she had nine properties, and was on her way to twenty homes by the time she reaches 40-years of age.

What shocked me was when the radio host asked her ‘I bet you really sleep well at night?’

Of course she said she did, because that’s what sells their real estate seminars.

People lose a lot of money from overconfidence.

It’s kinda like when a person makes a New Years Resolution to start going to the gym and get healthy. They pay for the membership, go for three weeks, then quit.

But they keep paying for the membership month after month – with good intentions of getting back – but the wasteful spending just keeps piling up. The reality is the only workout they get is walking to the break room at work for a snack.

I did a show in the Spring about how a blind bat could pick some random investments and beat the market. Then proved I could beat the market in about 30 seconds. That’s not me being smart, even though I am, that’s just dumb luck in a good economy.

Think about this – What would your life would look like today if we had a repeat of 2008?

• Would you have a big knot in the pit of your stomach?
• Sleepless nights?
• Money fights?
• At risk of falling off the financial cliff?

Or will you sleep like a baby?

Veneta was someone I mentioned on the show a couple weeks ago. She has five years worth of emergency savings. You’re probably thinking that’s way too much, but that’s what she needs to feel secure. She can sleep well at night for five years, no matter what happens.

Her plan is to get into some rental homes, but wait until the market drops so she can get a better deal. The Dallas housing market is very tight right now and there are no deals. You can bet people are over leveraged and the foreclosure rate will spike once the economy starts tanking.

You know this already because you’ve been listening for a while, you understand that there are always going to be boom times and down turns. When you follow the advice I teach, you will weather the storm. And it’s nothing I made up.

When you have a cash cushion, you always have a soft landing.

Listenting to the radio guest, because of her age I bet she was in her early 20’s during the last recession and she didn’t own any real estate. She hasn’t experienced what borrowing too much money and not having a big enough safety net can lead to. What do you know about living through a crash? How would you feel if you lost your job or 1/2 your income?

• I’ve lived through recessions.
• I’ve seen half my friends and co-workers be shown the door one morning because of a bad economy.
• I’ve been with my wife when she felt the frustration of not getting a new job anywhere because nobody was hiring. And the company she left eventually went bankrupt nationwide.

The good news for you is people like me go through this stuff so that you don’t have to. People may have parents who had their 401(k)s wiped out, and their kids learn how to avoid that.

People selling real estate seminars, gold coins, craptastic mutual funds or weirdo investments, they don’t care about you, they care about making a sale. I care about you, and you being ready. I’m showing you that being ready is important, and it isn’t me selling you something.

It’s someone saying that pan on the stove with all the chocolate chip cookies on it is still hot. I burned my hand once a long time ago, so put an oven mitt on before you pick it up. Makes sense right? You burn your hand once, you don’t want anyone else to get burned.

Just imagine having that big safety net.

• just imagine the boss walks in and says we’re letting you go, and you smile and say thank you! Because now you can go do that other thing you’ve been thinking about and have the money set aside you need
• just imagine you have that cash opportunity funds set aside to pay for deals when everything is on sale because the people that weren’t prepared are selling for pennies on the dollar
• just imagine when you can ignore the news without a worry in the world because you have this strong financial foundation that won’t collapse from hurricanes, earth quakes, or alien attacks from outer space.
• just imagine where somebody comes home and says they lost their job, and you give them a hug and says that’s ok, we’ve got plenty of savings to get through this.

During good times nobody can do anything wrong and it seems like every bet – no matter how ridiculous it is – is a sure thing to make money. People feel invincible.

There are two types of people. Those who think they are superman and are invincible, and those who think they are superman but realize there is some kryptonite they need to watch out for.

You’re a superman. Or a superwoman. Or a supergirl. Maybe you have a super dog. You know there is some kryptonite out there.

Make sure you’re following a proven plan to protect you from it. Make sure you follow a plan that works in good times and bad times.

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