00:00How to become a millionaire, part 14. Recessions don't destroy wealth, they transfer it. Here's
00:05what the wealthy do differently. First, they never panic sell. Instead, they create an investment
00:11policy statement before a market crash. It's a written plan that tells them exactly when to buy,
00:16hold, or rebalance. So while everyone else sells at the bottom, they're quietly buying assets on
00:21sale. Second, they build a liquid capital moat. Most people save a three-month emergency fund.
00:27The wealthy keep 12 to 18 months of living expenses in highly liquid, income-producing
00:31assets, so they never have to sell investments during a crash. Third, they use core and satellite
00:37investing. They keep 80% of their wealth in stable assets, like index funds and real estate,
00:42and only 20% in high-risk investments. Even if the risky investments fail, their financial
00:47foundation stays intact. Those are just three of the seven institutional strategies covered in the
00:52full video. If you want to learn the other four recession frameworks the wealthy use to buy
00:56assets while everyone else is forced to sell, watch the full video through the link in the pinned comment.
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