Part 1: How To [Financially] Survive The Coronavirus
In the face of this economic emergency, and out of this crisis, a new financial world will emerge.
Of that I am confident, and I look forward to it.
The recession we are facing will reveal problems that we, as a society, have been sweeping under the rug for too long.
The good news is that once these problems are exposed and the truths are told, we have a chance to solve them once and for all—not just for ourselves, but for the world.
Industrial Age vs. Information Age
Many of us are beginning to realize that the rules between the Industrial Age and the Information Age have changed.
For example, in the Industrial Age, there was job security and company loyalty. In the Information Age, there is less and less of each.
In the Industrial Age, the older you got, the more valuable you became. In the Information Age, the opposite is often true, especially in the field of technology.
These changes at the end of the Industrial Age and the beginning of the Information Age are adding to the coming of the perfect financial storm.
My concern is that many people are not able to see the coming changes, simply because they cannot see the differences between the Industrial Age and the Information Age. Just as most people do not know the differences between a DB pension plan and a DC pension plan, most people are not paying attention to changes that are coming but are not yet here.
Before any storm such as a hurricane hits, people on the beach begin to notice a change in the wind, the water, and the mood. Such a period of time is upon us now. Millions of us are aware of this change, but most of us are not certain exactly which direction the storm will head, how strong it will be, and exactly where it will come ashore.
Nevertheless, if we were on the shore, most of us would know that we need to do something different.
The Impact Of Bucky Fuller
In 1983, I read a book by R. Buckminster Fuller entitled Grunch of Giants. The word grunch is an acronym standing for Gross Universe Cash Heist. It is a book about the super-rich and uber-powerful and how they have been stealing from and exploiting people for centuries. It is a book about a conspiracy of the rich.
Grunch of Giants moves from kings and queens of thousands of years ago to modern times. It explains how the rich and powerful have always dominated the masses. It also explains that modern-day bank robbers do not wear masks. Rather, they wear suits and ties, sport college degrees, and rob banks from the inside, not the outside. After reading Grunch of Giants so many years ago, I could see our current financial crisis coming—I just did not know exactly when it would arrive. One reason why my investments and business ventures do well, in spite of this economic crisis, is because I read Grunch of Giants. The book gave me time to prepare for this crisis.
The method Dr. Fuller used to predict the future was based on a principle he called ephemeralization. Without getting into too much mind-numbing detail, I will use the story of the Titanic as a simple example of ephemeralization.
Centuries before the Titanic was built, humans first learned about the possibility of ships by clinging to a log and floating downstream.
Soon, humans created a dugout canoe. Next came lighter boats using planks and rib construction. The wooden ships got larger and larger until the battle of the Monitor and Merrimac, the first ironclad warships. Once steel construction was introduced, ships grew into giants of the seas, carrying passengers, freight, and armaments throughout the world. Business People began investing in bigger and bigger ships until the Titanic disaster. Soon after the Titanic sank, the golden age of ships ended. That is an overly simplified example of ephemeralization, one of the principles which Fuller used to predict the future.
Simply put, ephemeralization is the process of starting small, growing bigger, becoming too big, then small again, suddenly disappearing, or becoming invisible, as in the case of wireless communications. On occasion, the end of growth is marked by a disaster, as in the case of the Titanic and the giant airship, the Hindenburg. Fuller would say that the technology simply grew too large. In the case of the Titanic and similar ships of that size, they grew too large to maneuver, men operating the ships believed they were unsinkable, and new technology was on its way—the airplane. The airplane was in its infancy stage, starting small and then growing bigger and bigger.
What Does God Want Done?
I am often asked, “What is the secret to your success?” “How did you write the number one personal ﬁnance book in history?” “How did you get on the Oprah Winfrey Show?” “How did you get to write two books with Donald Trump, now the president of the United States?” “How did you survive the ups and downs of your life, the giant mistakes, the failures, the betrayals of friends and partners, the millions in losses, and millions in gains?”
In 1983, while studying with Dr. R. Buckminster Fuller, he said, “I do what god wants done.” So, I asked myself, What does god want done? It’s a question I encourage others to ask themselves.
At the time, I was in the rock and roll business. I was having fun. I was cool, hanging out with some of the greatest bands of the time like the Police and Van Halen. But I could not honestly say that producing products for rock bands was what god wanted done, even though I was making a lot of money.
So I’ll ask the question: What do you think god wants done?
Although I can’t say I really know, I suspect god does not want people to live in poverty. So, I began teaching what my rich dad taught me about money, and it seems to have god’s support. So I keep on teaching. And—yes—make a lot of money. As Fuller suggested I opened my eyes and asked myself what I thought god wanted me to do. Fuller, a futurist, was constantly looking at the evolution of evolution. He asked himself “What did god want for humanity, for the planet, for the future?”
Change What’s Inside Your Head
With the arrival of the new economy, there will be an explosion of new wealth. There will be new millionaires and billionaires. Money will be made at ultrahigh speed. The question is: Will you be one of the new rich or one of the new poor? Back in the 1950s, my rich dad saw the new economy and took action. My poor dad was crushed by the new economy. He chose financial security rather than financial freedom—and in the end, he had neither.
My generation, the baby boomers, have only known good times. Many are not prepared for the bad times. I am doing well today because I began preparing for bad times over 20 years ago.
By preparing for bad times, I do well in good times.
Editor, Rich Dad Poor Dad Daily