Why Saving is STUPID and Debt Can Be a Good Thing! by lscardinal17

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money · @lscardinal17 · Aug 13 '16

$0.02

Why Saving is STUPID and Debt Can Be a Good Thing!

We have been taught our entire lives that saving money is a good thing to do in order to become wealthy.
We have been taught that debt is evil and you should never get into debt else you will become pour.
We have been taught our whole lives that the dollars in our pocket are always going to be worth something.

We have been lied to.

What do the rich do that poor people don't? Why are there men and women making record breaking profits while the middle class and the lower class are suffering more and more? Why is saving not making people rich?

The simple answer starts with one fundamental flaw to the system. The flaw is that our currency is debt based!

So what gives our currency value?

Nothing. Air. "Confidence"...

The second that confidence goes away the currency is debased and becomes worthless..

After all it is just ink on pieces of paper if you think about them intrinsically....

What would you prefer in a chest that you buried in your backyard after 1000 years... 100 million dollars or 100 ounces of gold?

Assuming the dollars didn't decompose many would rather have 100 million dollars... but what if I told you the United States formed into a different country?

Would those dollar bills still have value?

Of course not, but the gold would, even if it was a very little amount of value.

This is why during our current system that SAVING is STUPID.

Saving dollar bills is playing russian roullette long term and ALWAYS losing.

Believe it or not our government and the federal reserve have a vested interest in making sure that you LOSE.

They call it inflation. When the value of everything you buy requires more and more dollars bills. You would say that the goods are gaining value....

But have they?

They haven't changed. A gallon of milk is the same now practically as a gallon of milk was 50 years ago, but the gallon of milk was around 10 cents, 50 years ago... now it 5 or 6 dollars.

That is over a %5000-%6000 debasement of the currency!

You say how can that be? It is because it was designed that way.

This is why saving dollar bills is a useless strategy for making money, you will lose more and more because it is designed that way.

So... How do you make money?

Simple... Buy the milk and hold it for 60 years and make %5000-%6000 returns... If that was possible..

So you have to buy things that last a long time and they will naturally grow in "currency value" as you hold them.

What last a very long time that will inevitably grow in "currency value" as long as this system stays in place.

Simple: Precious metals can last thousands of years, Good Land can last thousands of years, Companies can last hundreds of years or a few decades.

So what do you invest in....

Whatever is cheapest. Never buy something that you or others feel is overvalued. For extreme speculation you want to buy the most hated asset. The asset everyone thinks is worthless, because then you know that it's price is near it's cycle lows.

For cashflow you want to buy assets that throw off money into your pocket, dividend stocks, energy producers, businesses, mines and real estate through renters.

Now you are asking me why I told you that debt can make you rich.

If you can borrow money to buy an appreciating asset that puts money in your pocket while it pays off your debt wouldn't that be great?!

You can buy silver, dividend stocks, and many things with debt, but do they fit both criteria, Do they pay off the debt, and put money in your pocket, silver does neither, but it does rise in value intrinsically over time. Dividend stocks put money in your pocket, so if it is a good company you can fulfill both requirements.

What asset do banks lend the most money out for? What do their biggest loans go towards?

Housing.... So if you can have a bank give you 150K on a loan, you then use that property to rent to others which is paying off the debt, giving you tax cuts, and putting money in your pocket, also giving you intrinsic value of property appreciation over time, shouldn't this be what you should do?

You ask me... But I'm losing money... I'm paying interest on that debt...

Yes, but since that debt is priced in depreciating dollars your debt obligations get smaller and smaller as eventually 150,000 dollars will be just enough to buy a happy meal at mcdonalds while your property will continue to hold it's value throwing off cashflow as well as possibly appreciating over time if taken care of.

This is why the rich are rich and the poor are poor.

Those that buy assets that appreciate over time become well off. Those that buy cash flowing assets with debt that cashflow and appreciate become rich, and those that save money or try to save money (the poor and middle class) get poorer and poorer until they have nothing left of value.

This is the game. The question is now that you know this information what will you use it for? Will you buy that shiny new mustang that takes money out of your pocket, depreciates the second you drive it off the lot? Or will you invest in something tangible whether it be stocks, real estate, cryptocurrencies, precious metals, and other assets?

The rest is up to you. Use this information to grow your wealth or don't and continue losing to the very system you despise.

Word of encouragement.

I believe in you.

Just get started now and don't put it off because time is running short for these benefits.

God bless and Thank you Steemit for an awesome platform!

Any questions please reply below!

👍 alexgr, gary-smith, lscardinal17, bajekay, vmaddy, ramonphillips

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@alexgr · Aug 13 '16

The problem is that the interest rates will kill your investment over the long run - unless it is 

a) a very undervalued asset 
b) a non-manipulated asset
c) an expected quick return on your investment - so as to minimize loan exposure

Also remember the banks can get a loan at near zero rate from the central bank while the individual has to pay from a few percent to double digit %.

👍 alexgr

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@lscardinal17 · Aug 13 '16

Interest rates are at record lows and they are tax deductible on mortgages.

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@alexgr · Aug 13 '16 (edited)

If you manage to get a fixed and low rate for an investment that seems a no brainer, I'm ok with it. Otherwise it might end up bad.

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1 reply

@gary-smith · Aug 13 '16

Personal I think this is the worst idea possible we are heading into uncertain economic times again and you advocate taking on more personal debt that will need to be serviced regardless of whether your stock/investment property are actually providing a surplus.

That there is the definition of insanity in my book but what do I know I don't have debt

👍 ramonphillips

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@lscardinal17 · Aug 13 '16

Keeping money is the bank is a terrible idea... I do advocate saving hard assets, food, water, and maybe cash on hand.  Minimize cash assets in the bank if possible.

👍 gary-smith

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@gary-smith · Aug 13 '16

Agreed having any money in the bank other than what is needed to pay bills for the month is nuts, when a run on the banks occurs all the money in your bank is effectively locked away, you have to live on what you have at hand.

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@ramonphillips · Aug 13 '16

I agree with you that investing is a smart choice, however I think it'd be best to include a disclaimer that saving isn't all bad and simply investing won't make you "rich", "richer" probably if you can make good investments and avoid bubbles.

👍 ramonphillips

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@lscardinal17 · Aug 13 '16

Saving isn't terrible, but you will lose in the long wrong due to currency debasement and debasement... especially at these extremely low interest rates.

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