When I learned this lesson it blew my mind and changed my life!
My parents are very conservative and ever since I can even remember they taught me the importance of saving money.
I was maybe 5 years old when my father opened my first bank account to start making money on my savings!
“The bank will pay me money, dad?”
“Yes, it’s called interest son. They will pay you a small amount to be able to work with your money. It’s a win-win deal. They make money, you make money!”
A few years later, in the early 80’s, a big financial crisis happened in Mexico.
I can still remember when my father took me to the bank, got my cash, and invested in gold coins. I didn’t understand it back then, but this is what I now deeply understand and has me concerned about millions of people who don’t know this.
Have you heard about the “miracle” of compound interest?
Some “financial gurus” will advice you that saving cash with compound interest is the secret to create wealth.
They will even advice you to start saving young…
“You’ve got to open a bank account as soon as possible and start saving for your retirement! If you leave your money sitting at the bank making compound interest, the years will go by and you will be amazed how your money grows with the power of compound interest!”
THAT IS SUCH A BIG AND UNETHICAL LIE THAT AFFECTS MILLIONS OF PEOPLE WORLDWIDE!
Why?
WE ARE NOW IN A NEW ECONOMY!
Those financial rules don’t work anymore!
That used to work decades ago! But, today millions of people have been deceived by this “culturally accepted” norm of the past!
Please know this…
Everything has changed! What worked for our parents won’t work for us anymore! This is just one of the reasons I often warn people:
“Ignorance will be the #1 reason for poverty in the decades to come.”
I passionately teach what I call “Digital Age Education” because making money today is difficult enough; but ignoring these global changes makes it impossible to build wealth!
The world has changed, the ways to create wealth have changed and our global economy has changed!
Do you know what happens to cash savings today?
THEY LOSE PURCHASE POWER!
Even with the “power” of compound interests… you will NEVER catch up!
$100,000 in 1970 will NOT buy the same stuff that will buy you today in 2020! You will have a very difficult time trying to retire on such savings!
Look at the graph below:
- Don’t think you’re “saving!”
Get educated and don’t be deceived!