Getting upset won't help things

We may like to emulate highly successful CEOs and entrepreneurs when things are collapsing before your eyes. Many of you probably know Matt Mullenweg, CEO of Automattic, and original lead developer of WordPress? According to Tim Ferris in his book Tools of Tians, Matt is 'exceptionally calm and logical under pressure.' He's the epitome of 'getting upset won't help things.' Lets put this into perspective. His company is valued at more than $1 billion, has 500 employees and multiple data-center around the world- what are the chances that someone, somewhere has messed up right now?! 100%!! Yet, he is exceptionally calm! Wow!

Quickly shift your focus on the things you have control

After listening to a highly motivated, hard-working and successful individual whom I consider to be one of my mentors- this was my take home message; Everybody will be subjected to the 'unknowns' that present itself throughout our lives. But here is the thing- we're not in control of the 'unknowns'. We're only in control of what we decide to do when the unknowns hit our lives. What action we take in these situations are what separates the good from the great! It's taking 100% responsibility for our lives. Having the mindset that, 'nobody is coming to save us' except you! That is power!

How to prepare for a bear market

Just finished listening to Tony Robbins on a podcast where he discusses how to prepare for a bear market and be unshakeable/fearless. It was a fantastic interview and a timely reminder. To put this into context, the last bear market (crash) was in 2008 and market crash happens on average every 5 years, so we're overdue for one. The question is, are you prepared both financially and mentally? From a financial strategy point of view, he advises everyone to take a percentage of their money (income) that they'll keep forever, grow and compound, and provide passive income for the rest of their life without working (trading their time). 

"You're never going to earn your way to wealth."

To be financially rich, he says that we need to be owner of businesses. We can do this through owning a index fund and being well diversified.

Mentally, we have to be prepared because we know "winter" is coming and winter is the best time on earth. It is the greatest opportunity of our lifetime to leap frog financially. The strategy is, you don't need to panic. When markets go up and down, you don't go up and down. Apply stoic philosophy here.

What is the difference between a market correction vs a crash? A correction is when it drops from the high of 10% or more up to 20%. A crash or bear market is when it drops 20% or more up to 80%. Yes! 80%, like in the great depression. 

So when the winter comes, will you be financially and mentally ready?