Rich people don’t become rich by saving money. Savers are losers in this economy.
Let me explain:
The rules of money were changed in 1971 when President Nixon broke brought the Bretton Woods agreement. This is what took the U.S. dollar off the gold standard!
The rules of money changed as the U.S. dollar stopped being money (backed up by gold) and became an instrument of debt. Therefore, after 1971, savers became losers!
Here’s the depressing truth:
Millions of people still believe that wealth is created by saving money. Millions try to cut back on their expenses to save money, while the federal government prints trillions of dollars, which destroys the purchasing power of your savings!
This is how it works:
Quantitative Easing: When Central Banks create money out of thin air, they call it “quantitative easing.”
Why call it quantitative easing?
It’s merely a cover-up name to “printing money. ”It sounds more complex and exciting. It’s a fantastic way to deceive millions of people who will try to work harder and save even more while this brings terrible inflationary effects to the economy.
Luckily the quantitative easing has temporarily stopped, but the result is this:
Your purchase power decreases as time goes by, and it’s still falling fast!
But you may say, “I have “millions” saved!” to which the government will say, “Good for you!”
To become rich, start investing your money on ASSETS!
You might think you are making compounding interest on your investments. But that is not good enough!
Because are your compounding interest investments helping you feel more financially safe or not? Most likely, not!
You need to invest in assets to protect your wealth from the inflationary effects on your money! Assets that keep their intrinsic value over time like Real Estate.
A car is NOT an asset because it depreciates over time… unless its a 1962 Ferrari 250 GTO, which sold for a record $34.65 million!
By saying that you must have understood, buying stock may give you compounding but in cases such as market crash, measure diseases, you may lose all your money invested, because of the fact that stocks don’t have any intrinsic value attached to it.