Here's why you shouldn't save money.
The first one, of course, is inflation.
Inflation has been here forever and the Fed's target is 2%.
But we know it's been much, much higher.
So if you understand that inflation is rising prices
and you're holding on money, that means that whatever that money
you're holding on to has to buy those future rising prices.
So just because inflation and only because of that one thing,
the money you're saving actually buys you less.
Later, based on rising prices or inflation, all stagnant money.
All money that's saved
is worth less over time.
It buys you less over time.
I don't know about you guys, but everything I can see,
whether it's food or housing or cars, everything's going up.
That means that if you had the same savings account
as you had one year ago, two years ago, it actually buys you less.
So inflation erodes the purchasing power of a dollar.
And it's that way by design historically year over year.
And it really started in the United States when Nixon took the dollar
off the gold standard in the early 70s.
I have directed Secretary Connally to suspend temporarily
the convertibility of the dollar into gold or other reserve assets,
except in amounts and conditions determined to be in the interest
of monetary stability and in the best interest of the United States.
At that point, the dollar became decoupled from gold,
and before that it was tied to gold
when it became decoupled and allowed the government to print
as much money as they wanted based on the needs of the country.
Those needs, of course, are things like pandemics.
They might be wars, or they might simply just be for entitlement programs
for the elderly, like Social Security or whatever it might be.
Whenever you have the ability to add supply of anything,
in this case, it's dollars.
It's going to simply erode the value of that over a period of time.
The second thing is banks use your dollars for investments.
That's the way everything's designed.
So there's Main Street and there's Wall Street
and they're very, very different.
Wall Street wants what Main Street has
and every system is designed that way.
So when you put your money in a bank, then that bank actually
has an expense to you because they owe you interest on your savings.
So that's an expense of the bank.
So the bank now has a liability.
That deposit is an asset to you.
It's a liability to the bank in addition to the liability to the bank.
It actually has an expense in the form
of an interest payment on your money.
So the bank has to use your money
and invests just like Wall Street does,
with insurance plans and pensions or retirement accounts.
It's all set up the exact same way.
Wall Street
and Banks are what Main Street has, and that is your deposits
or your payments into these insurance products like pensions
or insurance or, of course, retirement accounts.
And then Wall Street invest that money for you.
So that's the system you're in, whether you like it or not.
When you go to work every day and you put your money into the bank,
it becomes a liability of the bank, even though you call it savings.
And of course it is.
Then that bank lends it out to other people like me or anybody else.
As you drive down and you see these skyscrapers being built
in all these cities.
Somebody is funding that.
And it's ultimately the people
at Main Street that provide the cash for Wall Street.
Once you understand the system and the rules of the game,
then it's just a matter of you playing the game just like Wall Street.
If you don't know, I run MK companies.
We have over 300 employees, own over 10,000 apartments and have transacted over
$3 billion in real estate transactions over the next 12 months,
I plan on buying over $1 billion of real estate.
I'm going to be doing a free webinar
on June 25th, going over exactly what we're doing as a company.
You can click here to sign up.
So the thing to understand about
money is the first thing, of course, is to make it.
But the second thing is of course to invest it,
try to invest it faster than inflation.
Invest it into things that produce a return and invest it
into things that provide tax savings so that you can pay less over time.
Because the other thing that happens when you're just making a lot of money
and you're putting into savings, you're actually paying quite a bit in taxes. Wow.
So by taking the money and applying what I call the velocity of money,
then you're actually plugging into the system
that needs it already for things that are producing.
So there's consumers and there's producers.
And the producers will always get the money from the consumers
and they'll produce things for the consumers.
So the question is what side do you want to be on?
Do you want to be a producer or do you want to be a consumer?
And it's possible, just like Wall Street is taking money from Main Street
that the producers are actually getting money from things
like retirement accounts or insurance money or even banks
that actually generate things that the consumers use.
So the consumers ultimately fund the whole thing.
The savers lose and the people borrowing from the banks win.
So the key is money is a tool, and you just need
to figure out how to make it work for you.
When you make money, you actually have the liability.
If you stick it in savings, it becomes something that can depreciate over time.
So your job is not only to make it, but to figure out where to put it
so that you can outperform things like inflation
and actually make that money, make more money for you.
So I've told you guys this before,
when I make money, I consider that my base.
I never want to use that money.
I want that money to make more money.
And that's actually what you should be living off
is you should be living off your base,
and you should not be any into your base because your base over time will erode.
If you could figure out how to create your base
and then have that money produce the money that you need to live on,
then you'll be fine.
And the worst position you can be in as a saver is that you will fall behind
based on inflation and you'll be in a position where you'll continually
be asking somebody else for more money, whether your employer
you need a raise or whatever it is, just to keep up with your lifestyle.
Because inflation is going to erode
and deteriorate whatever savings you have over a long period of time.
So people oftentimes ask me, what do I look to invest in?
And I always say the same thing.
I invested
hard assets that rise with inflation, period.
So I want to invest in anything that can't be printed.
I don't you can't print oil, you can't print gold, you can't print silver.
You can't print real estate.
Those are hard assets.
The thing I love about real estate is
I can actually borrow OPM or other people's money to buy it.
In other words, I don't need all my money.
Not to mention the fact that I don't actually need any money.
I can actually go find a really good real estate deal
and bring all the money into it, both debt and equity, and buy that asset,
and then ride the inflation as it naturally will occur over time.
So I always tell people the same thing when you make money, you should not
just put it into a savings account and have it be stagnant.
It needs to actually make money.
Money works with velocity and that's the system that we're in.
So the first step is to increase your income
so that you can start investing.
And because of that, I made a video on how anyone can realistically
escape their 9 to 5 job and become financially free.
What's that here?