Tom Bilyeu's Impact Theory
This Is Your LAST CHANCE To Get Rich In Upcoming RECESSION! | Jaspreet Singh (Fan Fav)
26 Dec 2025
Chapter 1: What opportunities does a recession create for wealth building?
Jaspreet Singh, there are more millionaires made in a recession than any other time, but my question is how and what can the average person do to take advantage of that moment or since I know the punchline, really any moment? And guys, make sure that you stay till the end because I'm gonna give you the eight things that I have learned from amazing answers from Jaspreet like you're about to hear.
So let me start with the simple answer and then we'll kind of break it down into more complex answers. Recessions create more millionaires than any other time, like you said, because when you have a recession, a market crash, people get scared and then they sell their assets. What's an asset? Stocks, real estate, crypto, gold.
It can be any type of investment, depending on what the crash is, what the recession is about. And that then creates a buying opportunity for somebody who has access to cash or capital and somebody who is financially educated. So if you have the cash, you're prepared and you have the education of knowing what to buy.
Well, now a crash creates a discount for you to come in and buy an investment on sale. You could think of it like that. Black Friday for investors. You get to go shopping at a discounted price because now people are selling because they're scared.
And what you want to look for now is good investments that are being hurt, not because their investment is on the verge of bankruptcy, but because the economy is pushing the price of good investments down. So that's kind of in a nutshell to answer your question what that means. But now if we dive a little bit deeper, we go a little bit higher level. How do you do this? What does it mean?
Well, if you ask the majority of people, or if you just ask anybody, is a recession a good thing or a bad thing? Most people are going to say it's a bad thing. But it's really relative depending on which side of the equation that you're on. See, it's bad for so many people because recession means, oh, I might lose my job. I might lose my home. I might lose my savings.
So it's bad in that sense where if you're not prepared, you might not be able to weather the storm and you might get financially hurt. We've seen this happen for forever now that anytime you see a bubble burst, the people who are not financially educated, the people who are not prepared, the people who don't understand what's going on in the economy get burned.
I remember the first time it occurred to me, I was like, wait a second, if I don't lose my job, then a recession doesn't impact me. Now, that was before I had any money invested. So now I have a better understanding of if you're counting on income or whatever from your investments, then it can still be a dicey period. But that was one of those things like the recession was a boogeyman.
It was like something to be afraid of. I didn't really understand why I was supposed to be afraid. And so my question is, Why do people get scared in a recession? What is it that makes them sell? I'll give you a very specific thing. So in crypto, even though the prices plummeted, I haven't sold a single ETH, not a single Satoshi, I've just been holding, not tense about it.
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Chapter 2: How can you identify good investments during a recession?
And so now when you know that, you'll understand that, okay, the stock market is a liquid investment, meaning you can buy and sell a stock with the click of a button. I can buy and sell a share of a company literally within two seconds. And so what does that mean?
Well, if I start reading headlines, I see the market going down and start getting this anxiety, I start getting this fear, I might just want to sell. I mean, I can do it in two buttons.
And if all my friends talk about how they're selling, how they're losing money, and the media keeps talking about how the market's collapsing, the world is going to end because the media is either going to say the world is ending or nothing bad will ever happen. It's typically one of these two extremes because that's what drives them. And I want to get to that.
That's one of the things I'm going to push you on later is like, I've heard you talk about this. People lie a lot. They do. And then they come out and admit, yeah, we were lying, but we had a reason. But I won't derail us now. But like that kind of stuff freaks me out. And that's the reality of life. And we'll talk about that. So now if you understand that, what does that do?
It manipulates people's emotions. Emotions then drive our actions. And what are these actions? We sell at the bottom. And then we buy at the top because at the top is the same thing. People say, oh, everyone's making money on the stock. You can't believe how much money these 17-year-old kids from high school are making. You can't believe how much this hedge fund made.
You can't believe how much money whatever your neighbor made. And now you get jealous. You get this FOMO. You don't want to miss out. You come in and buy. Then at the bottom is the opposite emotion. So that's the voluntary sell because most of us don't have the psychology, which is a part of the financial education of how to manage our investments. The second is the forceful sale.
Now, the simplest example that I can give you of this will be if we backtrack, look back to the 2008 real estate crash. Now, if you bought a home for $400,000 and you had a
adjustable rate mortgage which was very common back then and it's getting common again it is getting very common again which is very bad news but they were very common and another thing that was very common back then was a zero percent down payment but let's assume you put a little bit of money down because you were you wanted to put some skin in the game so you put a little bit of money down you put three to five percent maybe ten percent down
Well, what happened was a few years after you bought the home, interest rates went up. And now you realize... Yeah, really fast, I want to walk people through what an ARM is. So an adjustable rate mortgage. I had one. If I had known how dicey it was, I would not have done it. So an adjustable rate mortgage, you're basically betting that the future is going to be better than the current moment.
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Chapter 3: Why do people panic and sell assets in a recession?
Then a few years go by. You get this letter in the mail saying your payment's going to go from $900 a month to, let's just say, $2,000 a month. Now, if you don't have the ability to pay this extra $1,100 a month, you're going to say, oh, that's quite a bit. Oh, well, no big deal. Let me call up my banker and tell him the situation.
And he'll tell me what my best options are because my banker is a good financial advisor, right? Call up the banker. Say, hey, banker. I can't afford this $2,000 a month. What are my options? He says, well, you can refinance or you can sell. This is what was happening now getting closer to 2008. And so you said, okay, well, let's get an appraisal or let's look at the value of the home.
You bought it at $400,000. Now you may be owe $380,000 over the first few years because the first few years of your mortgage are interest heavy, meaning the majority of your monthly payment is going towards interest, not paying down your balance. And so now they look at it and they say, so the value of your home is now $350,000. You owe $370,000, $380,000, meaning you're underwater.
So now if you owe $380,000 on a $350,000 home, no bank is going to want to refinance because now you're underwater. They're not going to want to re-lend you any more money. Otherwise, you're going to have to bring cash to the table. You can't sell the home because if you sell your home for $350,000, you need to still pay the bank the other $380,000.
So you need the $30,000 coming out of your pocket. And if you don't have $30,000, you can't sell. So what's the next option? Well, If you can't make the monthly payment, either you're going to walk away or the bank is going to force you to walk away through a foreclosure. This is now a forced sale.
So now the bank comes in, they take the home from you, and now the bank wants to liquidate because they want to not own properties. They want to just lend money. That's their business. They don't want to own homes. And so that was what happened. And so many more homes hit the market. You see the same thing happen in the stock market when you buy stocks on margin. And now what does that mean?
It means you're using debt to buy stocks. And when you use debt to buy stocks, Your lender, your brokerage doesn't want to see your portfolio fall by a certain amount. If it falls by a certain amount, they're going to ask you now to cover, meaning put some money in.
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Chapter 4: What mindset shifts are necessary to thrive in a recession?
And if you don't have this extra cash, the reserves to put more money in because you thought your investment was going to go up, so you went all in. Well, now they're going to force you to sell. And that is now, again, a forced sale. So now markets are going down. What causes people to sell?
Either voluntary because you get panicky, you get scared, you get worried, or you think you have a bad investment, so you want to exit as fast as possible. Or on the flip side, it's a forced sale where now... You used debt and you were over leveraged and now you're underwater and now you're being forced to sell. So what does this do? This increases the supply of this asset.
Now, again, what is an asset? Stocks, real estate, crypto. It can be any asset out there, an investment. So now when you increase the supply of this asset. Well, that can now bring the price of things down because the price of anything really, whether it's an asset or something else, depends on supply and demand.
When you have a lot of supply of something with no demand or very little demand, the price of this thing is going to fall because now all the sellers are fighting against each other to get somebody to buy it. On the flip side, we have a lot of demand, but no supply. The price of this is going to go up. This has been the real estate market for the last two years or so.
We have had this massive demand of people wanting to buy homes. Why? Well, for one, the pandemic changed our workforce where now you can work from home. So people want a home with an office in the home. Second, people want to move out of the big cities because they realize if I can work from home, I don't got to pay this $5,000 a month in Manhattan.
I can go live in a suburb and pay a fourth of that and have a bigger home. And then third, mortgage rates were the lowest that we have ever seen ever in the history of American modern history. We've never seen mortgage rates this low. So this created a massive demand, meaning people wanting to buy homes. So you had this flood of people wanting to buy homes.
while the supply of homes was extremely low. So some people didn't want to sell because they were worried about the pandemic. They didn't want people to come in their homes who could have potentially been sick. Second, builders couldn't build homes because we had a labor shortage. We had and still are facing supply chain issues. So what does that mean? You want to build a home.
Well, do you remember there was a period where there was a huge spike in lumber costs? Builders could not get access to certain materials. Certain materials were backed up. It was harder to find labor, to find workers to help build the home. And then on top of that, the cost kept going up because now workers wanted more money. The cost of materials kept going up.
So it was this big dilemma in the building side. So the inventory of homes was artificially low. You could not build more homes.
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Chapter 5: What are the implications of inflation on personal finance?
So they can increase the amount of dollars out there, which decreases the value of each individual dollar. So while our dollars serve as a very good means of exchange, it's not a very good store of value. This is what wealthy people do is they want real money. They want something that's not only going to store their value, but also hopefully increase in value. This is what assets do. We hope.
We hope, right? You invest in assets for the purpose of making money. How does it make money? By increasing the amount of value that it provides. When you invest in a company or an ETF or anything, You want to invest in something that you believe will be more valuable in the future. If you didn't believe that, you wouldn't put your money in there. How is it going to become more valuable?
How is McDonald's or Amazon going to become more valuable?
Chapter 6: How can financial education impact spending habits?
Their goal is to produce more value, to create something new that will provide more value to more customers. And then their value is represented through revenue, through profits, through money. So you're investing in something that you believe will produce more value. Same with real estate. You want to invest in an area that you believe will be a more desirable area.
Because if you invest in an area where businesses are moving to, where people are moving to, where jobs are moving to, you own that land, you own that property, you own that building that is now more valuable because more people want to be here. And now that is represented through money, through this currency, where now more people want to be there. So now rents are higher.
Property values are higher. This is why this stuff gets complicated and why people turn their brains off. Because, for instance, if you pick the wrong neighborhood, you can lose your ass. Right. And this is where ETFs, index funds become very interesting to use real estate as an example.
I personally, because I recognize how ignorant I am, I would much rather be investing in a whole bunch of neighborhoods across not only this country, other countries, because I don't know which one's going to pop off. Yeah.
Chapter 7: What are effective strategies for managing taxes?
Right. So because there is so much uncertainty, it's like as you spread that out now, but to your point, you're limiting your upside, but you're limiting your downside. Right. That to me is far wiser. You're never going to, you don't become the next Ray Dalio by doing that, so you're not going to turn into a billionaire. But when you think like when Ray Dalio was pressed, like what would you do?
Like if you could only leave a set of instructions to your kids about what to do with their money, you couldn't actively manage it for them. You couldn't have your company do it. You just had to give them instructions. And he came up with what he called the all weather fund. And so it's just like, I don't know what's going to happen.
So here's like the diversification that you should put it across and you're not going to make as much money, but you're not going to lose a bunch of money either. And so
all of this stuff is so freakishly complicated that even better it is so easy to be wrong and so hard to be right that your odds of getting it right consistently enough because it's to your point about the monkey if you looked at it in six months monkey probably loses you look at in 12 months monkey probably loses 18 months probably loses two years
Chapter 8: How does debt affect investment decisions?
maybe loses three years though it starts to be like yeah all bets are off and by the time you get to ten years like the monkeys winning just because you just left it alone yeah instead of thinking that you could outsmart the scenario and Warren Buffett did a very similar bet against some major hedge funds on Wall Street what he bet there's a 1 million dollar bet that the winner would give a million dollars and then they would go to charity and
And his bet was that the average person would be better off by investing their money into a low-cost index fund as opposed to actively managing their money, actively trading their money like the hedge funds were doing over the long term, over a 10-year period. And what happened was exactly what you said. In the beginning, the hedge funds were crushing the index fund.
the index fund was down, hedge funds were going up because they were able to find these trades and make all this money in the short term. And the media was asking Warren Buffett, how do you feel about it? He said, the 10 years are not up yet.
And then come year 10, well, then we had some swings in the market, some hedge funds had some losses, you took out their fees, which is also a big chunk of it. After factoring in the fees and all that other stuff,
the index for the bond and what did he do he just put his money into it set back and didn't do anything versus the hedge funds are spending all their time managing the money trying to beat the markets and they did for a little bit but then over the long term they didn't and then when you factor in their fees for spending all that time trying to beat the market now your returns are less than if you just put your money into the market and didn't have to do a thing yeah and so this is that basic financial education where it's not as attractive people want to be able to show off like it's just like
People would rather look rich than actually be rich. And you would say, oh, no, I would rather be rich. Well, people's actions speak louder than the words. Because if that's true, you should not have a Gucci belt if you don't have that same amount of money in the market. You should not own a BMW if you do not own any investment portfolio. It's just a matter of looking at what you do.
Does it match with what you actually want? If you want to become wealthy, The answer is yes. Okay, what are you willing to sacrifice? You have a BMW in the driveway, you got the Gucci belt, you have the Louis Vuitton. If you have the nice stuff, but you don't have the nice assets, your priorities are in the wrong place.
And this is just a matter of you looking at yourself in the mirror and being honest with yourself and understanding what you want. And for a lot of people, maybe this is a matter of financial education, maybe this is a matter of preference, but Many people would rather look rich than be rich. If you just look at, you know, what it is.
Now, if you dive a little bit deeper, the people that want to actually be rich, we want to be rich today. We want to be rich tomorrow, not be rich in five, ten years. And so what does that do? It then drives our actions.
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