The Money Problem

Money makes the world go round.

How many times have you heard that saying before? A lot, right?

Well, it’s true, but… there’s a problem with money.

A BIG problem, and it’s not getting resolved any time soon.

Money

Billions of dollars worth of fiat currencies are exchanged each day, for goods and services.

• Groceries.

• Fuel.

• Software.

• Furniture.

You name it.

This is the purpose of money. And to be honest, that’s all it does.

There’s a common misconception surrounding money, and it hinders people’s ability to build wealth.

I get an email all the time from my bank saying, “Hey, it’s time to get saving.”

I couldn’t think of anything worse. Let me explain.

The money we all see and use today is called fiat currency.

Government, or state issued currency that we use as legal tender.

But right there. That’s the problem.

The Big Problem

The word currency, comes from the word current.

Like an electrical current.

In other words, to get the true value of money, it needs to be… in circulation.

It’s not meant to be kept in one place. It’s not meant to be used for savings.

Money, despite what people say, is not supposed to store wealth.

It is a medium of exchange. A transfer of value in exchange for goods or services.

That’s it.

Think of the economy like a ferris wheel. Except, instead of people on board, it’s money.

To work properly, the ferris wheel needs to be going at a certain speed. Or, in other words, money needs to be moved around at a certain speed.

Move too fast, inflation rises & a cost of living crisis occurs.

Move too slow, the economy fails and you risk going into a recession.

Money, as an entity, shouldn’t sit still. It can be disastrous if it does.

And that’s because of one thing: Inflation.

Since the early 1970’s, and The Gold Standard was abolished, governments have had full control over fiat currency.

And new bills get printed each day.

So, what does this do? It drives the value of the currency down.

Year after year, you’re able to buy less and less, with the same amount of money.

Are groceries, fuel and energy going up in value? No.

Just because something becomes more expensive, it doesn’t mean it becomes more valuable.

What happens, is that the currency is being devalued by those in control.

Unfortunately, for the little guys like us, those in charge prioritise the wants of the few, over the needs of the many.

The few? They invest.

They want inflation and low interest rates. They want their assets to go up in price.

The many? They save.

They don’t want inflation as their cash loses value.

Sure, we all need money for bills and a liquid financial safety net like an emergency fund.

But, when it comes to building wealth for the long term.

Exchanging your cash for appreciating and income producing assets is the only option.

If you put $1 into the stock market in 1800, it would be worth over $1 million today.

If you had $1 in 1800 and left it in cash, how much do you think it would be worth today?

You’re wrong. The answer? 5 cents.

This, is inflation.

Sure, nobody’s ever lived 200 years to experience this in one lifetime, but the fact remains.

Get your wealth out of fiat currency, and into assets like:

• Stocks

• ETFs

• Real Estate

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