Is saving money smart or silly? It is a very common belief that saving money is the smart thing to do. Although the question should be what do the wealthy do with their money. Even In the Bible saving money was frowned upon by Jesus.. Why is that? Isn't that the smart thing to do, to save as much money as you can in a bank account, shoe box, or under your mattress for a rainy day, retirement, starting a business ect?
The simple answer is no! Saving money isn't smart. Why is that, many may ask? Simplify because
of inflation. The average inflation rate for the USA is 8% plus per year. So that means for every 100 dollars you save the following year you technically lose $8 dollars. If you made it to 1 million in savings you would basically be losing 80 thousand dollars a year.. Now you tell me is saving money the best idea? So what are supposed to do? Well lets start with what the wealthy do.
They dont save money they invest! In what you may ask.. They invest in tangible assets or income producing intangible assets. The key is to find assets or investments that increase in value, produce interest, or become a dependable stream of income. There are 2 main types of assets & investments liquid & Illiquid. If its money for a rainy day you will want liquid if for long term purposes and you dont need fast access ither will do fine.
There are various options that are night and day better then "saving" your money. Even Jesus looked down upon "saving" money. A clear example of this is given in the bible in the book of Mathew chapter 25. Where Jesus gave money to 3 people. 2 Indvidual's you took what Jesus gave them and multiplied it. While the other went, buried and hid what was given to him. Jesus was very pleased with the two individuals who multiplied there money but pissed at the Indvidual who "saved" and didnt use what was given to make more.
Here are a few well known easy assets and investments you can get into. First one up reit's "Real estate Investment Trusts" Most earn far above 10% annually though dont often offer liquidity without a fee. IUL's are one of the best investments for their many benefits in addition to above average returns. Then you have tangible assets such as precious gems, art, & numismatics. Which all if properly bought at true market price will easily increase in value far above 15% per year. Lastly is the riskiest but if properly done will allow for a quarterly or annual cash flow in addition to staying above inflation rates with liquidity. This my friends is dividend stocks. The key with divined stock is to find time tested companies with perpetual steady growth. Average quarterly to annual divided for these types of company's range from 2-5%+. When paired with their increased growing value in stock price you will be above the inflation rate of 8% annually.
Bottom line here, if nothing else at least put your liquid funds in a interest bearing account such as one offered by various lenders at rates between 4-5% instead of just sitting around decreasing in value. Invest don't save. Do what the wealthy do if you want to be wealthy.
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