The Secret to Money
We are always afraid of what we do not understand. That is why money is one of the “forbidden” subjects.
You may hear “I want more money” or I do not make enough money”.
Try asking the opponent what money is and you may encounter dead silence, a surprised look on their face, or a cliche phrase that reveals they never took time to understand what money is.
To get rid of our fear of talking about money, we want to learn some boring stuff such as economics, financial markets, financial law and debt.
When we talk about a sufficient amount of money we may be satisfied with, we essentially assume stable or increasing purchasing power that sustains a comfortable lifestyle in any financial and economic upheavals.
After all, we actually do not have a certain amount in mind but our sustained purchasing power that guarantees a particular lifestyle.
Fiat Currency and Inflation
Voltaire’s postulate that all paper (or digital) money eventually returns to its intrinsic value – zero can be confirmed through observing the creation of inflation and hyperinflation.
Inflation is an intrinsic identifier of fiat money that results in diminishing purchasing power overtime.
Inflation inevitably erodes your purchasing power and savings accumulated in cash or financial fiat products such stocks, bonds, annuities, exchange-traded funds (ETF), index funds, and paper commodities (oil, gas, precious metals) by design.
Exponentially growing debt amplifies the effect of diminishing purchasing power. Although we cannot control or prevent inflation, we can protect our purchasing power through intelligent investment choices.
Protecting Your Wealth
We want money to be free in our choices and to protect ourselves and our families from economic and market fluctuations.
You do not want to work seventy-eighty hours a week building a business and creating wealth just to lose it to inflation and economic upheaval.
Financial fiat products undergo inflation as fiat currency do.
The current stock and bond markets have been significantly overpriced making the paper and digital fiat assets an unwise investment due to an impending financial catastrophe that will probably make the 1929 economic crisis look like a picnic.
Furthermore, since the dollar has only 4 cents left and the US debt exceeds twenty one trillion dollars, we should not seek protection in cash and fiat-based products
Presently the stock and bond market presents a perfect opportunity for speculation.
Experienced traders capitalize on the market volatility by placing bets against the market, widely known as trade options.
However, trade options should not be taken lightly by novices as a sure path to fast money.
Purchasing Power Preservation Assets
Ideally, to preserve purchasing power and to protect wealth, you want to invest in undervalued assets.
Presently, such assets are silver and gold, silver being the better choice with respect to potential gain.
Since real estate is also currently overvalued, land may be a better wealth preservation asset than real estate.
Inevitably, real estate will come to its intrinsic value during an economic crisis and a dollar collapse and will again become one of the best wealth preservation assets.
You will be able to capitalize on the economic collapse and purchase affordable real estate, if you can preserve your purchasing power and place your wealth in the correct asset classes.
From the grim financial picture of the fiat currency and the stock-bond market, you may deduce that investing in them today will result in loss and disaster.
Furthermore, such tangible assets also protect purchasing power and provide barter ability due to their versatility of use.
Land can be used for building or farming, silver maintains its value due to its wide industrial use.
Not to mention, its antiseptic effect: think of disinfecting water with a silver nugget and boosting the immune system.
Due to its stability as a metal, gold is used in electronics, prosthetics, and jewelry making.
Since gold and silver protect purchasing power and preserve wealth, not paper bank notes, the former should be money, as it traditionally was for thousands of years.
The Secret to Money in a Flash
The main philosophical secret to financial prosperity is the ability to invest in assets that protect purchasing power. it is as important to make enough money as to save and to protect what we make.
Keep in mind, that money is always tangible, such as cash (at the beginning of the currency cycle, of course), gold, and silver; money is what you can physically hold in your hands.
If you can’t hold it, you don’t own it. Digital holdings such as stocks, bonds, ETFs, cryptocurrency, etc., are risks and liabilities, good for speculation, but not good enough to be money money as they stand.
Although they can be converted into money, they also can be wiped out with the sleight of hand.
Despite inflation and growing national debt, we can hedge our risks, create, and protect our wealth to live in prosperity regardless of market fluctuations and economic crises.