Hey, It’s Matty A, host of Millionaire Mindcast, and in this week's Millionaire Notes, you are going to discover the things that’ve been fueling my whole life millionaire lifestyle as of late. Ready? Let’s dive in!
Read of the Week:
Outwitting The Devil by Napoleon Hill - This book was actually written in 1938 from the famous author of Think and Grow Rich. The book features a fictional conversation between Hill and the Devil, representing fear, procrastination, and self-doubt. One key lesson that I love from this book is "definiteness of purpose." Hill emphasizes the importance of a clear, unwavering purpose to overcome challenges and achieve goals no matter what stands in your way. It’s almost like Simon Sinek’s, Start With Why but with a more tactical focus on overcoming negative inner self talk and bad disciplines. This is always a great book I like to crack open from time to time when I am working on something BIG and want to keep the inner mind calm, present, and purposeful.
Wisdom of the Week
Success in life is a game of inches and every one of those inches counts more than you know when it comes to winning or losing. The inches we need to succeed is everything around and within us…every decision, every habit, every discipline, every relationship, every opportunity, it all matters!!! To win at the highest level, you have to fight like hell to get those inches…every day! When you’re ready to own whatever it takes and level up your grit, your grind, and your work ethic, you’ll punch the ticket out of average and unlock excellence.
Question of the Week
Question: I have been following the Silicon Valley Bank collapse closely and I am curious about your thoughts about the stability of our banking system and if there were any insights you gained from this outcome. (Justin S - Reno, NV)
Answer: Recently, I’ve seen a lot of inaccurate information and fear being pushed around this topic, specifically on the stability of our banking system going forward. Ryan and I did a full episode this week to break down and recap the SVB collapse and what impacts it’ll have on investors and the economy as a whole.
That said, I think there are 2 key lessons to highlight here for everyday investors like you and I: diversification and risk management in one's investment portfolio. If your investments are too concentrated in a single sector or company, you could be at a much higher risk of losing it all like SVB did. The more diversified you are, the more you can spread out your risk and help protect your investments from the negative impacts of a single or sequence of events.
This involves being aware of the potential risks associated with your investments and taking measures to mitigate those risks. In the context of your investment portfolio, you could consider the following risk management strategies:
- Periodically review and rebalance your portfolio to ensure that it aligns with your risk tolerance and investment objectives.
- Conduct thorough research on the financial institutions, advisors, and companies you invest in/with, paying close attention to their financial health, management practices, track record and industry outlook.
- Maintain an emergency fund or cash reserves to provide a financial cushion in case of market downturns or unforeseen events.
- Consider investing in assets with low correlation to the banking sector, such as bonds, real estate, or commodities, to further diversify your portfolio.
Overall, I’m still very confident in our banks and financial institutions. I think this is a great reminder that there’s always something unplanned or unexpected around the corner so you should never be asleep at your theoretical “financial wheel”. Use this as an opportunity to review your financial plan and stay focused on what you can control. Everything else is just noise.
Pic of the Week
Every 90 days during my accountability groups quarterly review call, we reviewed the Lencioni Model building and how it can make us a more cohesive and productive team. For anyone building or working within a team, I highly recommend studying Patrick Lencioni and his work.
Something I Enjoyed This Past Week:
ChatGPT-4 just launched this week and I’ve been using it obsessively. Specifically, I’ve been using it around podcast content and for ramping back up some Youtube content for you guys on important topics around personal finance and investing. It saves me so much time researching topics and actually writes out scripts and outlines too. It's unbelievable. I just launched this new video today on Youtube about The Death of All Real Estate and how this will impact more than just real estate investors. If you’re not subscribed to the channel, be sure to do so and drop me a comment with your thoughts on the video.
Onward and upward,
Matty A
PS - Hey, you! Yes, YOU! Want to join me for a day of shredding gnar on the slopes, indulging in world-class cuisine by the lake, and chatting about your wealth and business goals? Of course, you do! And who wouldn't want to become best buds with yours truly in the process? Don't be a fool and miss out on this epic adventure! Apply now to secure your spot for the Tour Tahoe day of 1-to-1 masterminding before someone else takes it!
