Save Money to Become Rich – Should You?

Are you one of those people who believe that you should save money to become rich? If yes, then ask yourself these questions:

 

  1. How much do you have on your savings account TODAY
  2. How much was that amount worth 10 YEARS AGO
  3. How much will that amount be worth 10 YEARS FROM NOW?
  4. When you look at these questions, you will realize that by SAVING money, you are in fact LOSING money.

 

Now I’m going to tell you something that will make you think I am crazy: You can profit more from being IN DEBT than by possessing money. And by “money” I mean: paper money. The kind of money that your government makes: fake money, Monopoly bills.

But before you call me crazy, let me ask you the same questions in a little different way:

 

  1. How much debt are you in TODAY
  2. What was the value of that debt 10 YEARS AGO and
  3. What will be the value of that debt 10 YEARS FROM NOW?

 

First of all you have to realize that the value of most of the important currencies decreases every year (and thus also the value of the less important currencies decreases, because those are linked to the important currencies). If you bought a car in 1900 for 1000 US dollars, that same car would cost you $26,800 today.

The groceries that you bought in 1975 with $100, would cost you $405 in 2010. That’s 400% more. buy forged money

If you paid €81,87 in the year 2000 for a nice shirt, you would have to pay 100 euro for the same thing in 2010. If this is happening in rich first world countries, what would be the effect on poorer countries?

How does that happen? Ask the bankers who steal your money, then have their banks saved with your money. Bankers fill their pockets with your money instead of pushing it into the economy, then print more money to fill up the gap (this is how inflation is created). And you pay the bill.

What are the effects to your debts and your financial (monetary) assets when the value of money decreases? It’s quite simple:

 

  1. The value of your savings go down, but also
  2. The value of your debts go down
  3. In other words: every year you can do less with the money you saved. And every year your debts are worth less. Or: you gain more by being in debt than by having money in the bank.

 

Let me give you a quick example. Let’s say today is September 1, 2012. The president of the United States of America has just announced that the dollar will be devaluated. In Brussels, the chairperson of the European Union declared that the euro will cease to exist, since rating agency Standard & Poor’s downgraded France from AA- to A. In Italy and Spain police shot hundreds people who robbed supermarkets in the worse food riots since December 2011 when president Berlusconi was sent to jail.

You had 100.000 euro in the bank. Your 100 big ones are now worth 100 euro.

You had a mortgage of 500,000 dollar. Now that mortgage is worth 500 of today’s dollars.

You had gold bullions and silver coins in your private vault, worth 50,000 dollar. When paper money goes down, precious metals tend to go up. Now your bullions and coins are worth 5,000,000 dollar.

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