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?
