Jaspreet Singh: ‘More Millionaires Are Made During Recessions’ — Here’s How
Written by
J. Arky
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Chris Cluff
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Jaspreet Singh knows a lot about money, but one thing he definitely knows is that more millionaires are made during an economic recession than at any other time. If that sounds crazy to you, check out Singh’s YouTube video “Do These 7 Things To Get Rich In The Next Recession” to understand the reasoning behind this seemingly paradoxical conundrum.
Singh clarified that he’s not talking about shorting the market, which he said is “too risky” for his taste. What he really means is that the United States has endured a recession in every decade for the last century — and it’s not a matter of “if” but “when” the next one will come along.
“The best time to start preparing for an economic downturn is not when you are in an economic downturn,” Singh said. “It’s when things are OK.”
Let’s see how you can get rich off a recession, according to Singh.
Be Prepared for It
“Seeing the opportunity isn’t always easy,” Singh said.
He said those who were prepared during the 2000 recession, the 2008 recession and the 2020 recession made bank when the markets crashed because they were ready to move in while everyone else pulled out. Basically, it all comes down to getting set up to invest at a time when your competitors are fleeing the scene.
Singh recalled how he started investing in real estate after the 2008 housing market crashed, when property in Detroit was selling for more than 90% off. His first piece of property was a foreclosed condo that Singh was able to snatch up for only $8,000. He then rented it out for $600 a month. Only a few years prior, a previous owner had purchased the same condo for $150,000 before it was foreclosed on by a bank during the recession. Singh, like many investors seeking to grow their return on investment, was ready for the economic dark times, turning the moment into an opportunity to make money instead of lose it.
“This might seem like a no-brainer deal today,” Singh said. “But back then, when I would talk to other people about it, even with people who had money, even people who were financially savvy, the common consensus was, ‘You are out of your mind if you thought about touching real estate after the 2008 crash.'”
Explore More: I Followed Mark Cuban’s Genius Advice and Am on Track To Become a Millionaire
It’s Not All Doom and Gloom
Singh said most people had the mindset that real estate creates foreclosures, which creates bankruptcies, which zaps the market instead of generating wealth. Singh showed how this is not always necessarily true.
A similar scenario happened when the Covid-19 pandemic hit and the economy went into a tailspin in 2020. Singh made a series of videos about stocks he was purchasing at rock-bottom prices while the internet questioned his judgment. Cut to today, when, like many investors, he has reaped the benefits of buying shares when they were low only to watch them increase in value in just a few years.
‘The Recipe To Build Wealth’
Singh explained that he has seven steps to get rich in the next recession, but the main takeaway from his video is that getting rich during a recession does not mean you suddenly have tons of disposable income. Singh advocates for using these economic downturns to generate wealth, build up savings, create an emergency fund and allocate profits toward future opportunities. And, sure, spend a little more money on cost of living and some luxuries to help stimulate economic growth in your area.
“This is now the recipe to build wealth,” Singh explained. “Because now you keep investing your money. You don’t need to wait for a recession to start investing. But you keep investing your money and then, if you see something bad happen in the economy — (e.g.,) you see a market crash, asset prices go down, you see a good investment opportunity — you can use the money you’ve been saving to be invested.”
That’s how average investors become millionaires during recessions and far beyond. They save up, wait for a moment when they can get a discounted price on an investment, and then use their money as a tool to purchase more of an investment.
“That requires you to have a financial education,” Singh said. “That requires you to be prepared. And that requires you to know where you should be investing.”
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