The Expert Podcast

…So here's a really good article on market watch on the hidden underlying problem with the economy that a lot of people are not overlooking most people in this country even if they live a comfortable life to have a nice car and have a have a nice house. Have a net worth of basically nothing. Right You may have a little bit of money in the bank even if you have five or 10 or 15,000. that's you know a couple of months worth of expense. net worth is something where if you've accumulated wealth equity in your home, a large stock holdings cash in the bank.

that's when you have more stability I think about how long you could go without income. Right. That's also a measure of what, how close you are to retirement And, you know most households the net worth of the median household is basically nothing. Even the middle class doesn't have a. A high net worth.

Obviously you know poor people don't have any money but the only difference between a poor person and middle-class is the quality of life. If you have no money or very little money.

it doesn't, the only difference is how comfortable your current present day life is. That's why it's very important, not only to have a significant income but also to accumulate assets to accumulate a safety. A safety measure of cash. So that. An event which happens in your life that costs money.

Maybe damage to your house maybe a car. Blows up maybe a health event. Or some other type of loss that job. discontinuation. Doesn't put you in a position where you go from middle-class to poor.

Right. And if you're poor or you want to move up to a comfortable life but more importantly is to accumulate some capital. So that you can leverage it Look having extra capital. Also allows you to earn more capital. Because if you don't need to have a really.

A lot of money on your credit cards that you're paying interest on. If you have more cash in the bank maybe you can raise your deductibles on your insurance There's ways to make more money Now, granted I know it sounds easy for me to say it. And it's harder to do. But the point is that this isn't about solutions. This is about I was just pointing out that like Carl Icahn says there's some major problems in the economy when the vast majority of people have really no net worth.

And have no accumulated assets that puts us in a bad position from a security and…

a financial standpoint as a population.