Spending money for the right things will make you richer than you would if you save.
The usual wisdom of so-called financial experts is that the best thing you can do to have financial independence and financial freedom is to save your money.
In fact, this is not the case. In fact, he believes that savers are losers. Of course, he is talking about a certain type of savers. The one who puts money in a low-interest account and hopes that by the time they get to retirement it will have magically grown into all they need to live on.
This is not working and is a bad financial advice. In an economy where almost everything is built to take your money, saving does not help. From inflation to taxes to hidden fees in your account, the system is just up against you.
So, you have to save, but for a very specific reason, so you can spend it later. In today's economy, investors are winners. Under this he means people who know how to spend their money in the right places and in the right investments.
That's why people who spend are profitable.
Money is not supported by anything. It is a currency that, like electricity, always moves. If the electricity shuts down, the electricity goes out. Similarly, the money is presented. Cash flows move from one sector to another. If the money stops moving, they slowly start to lose their value.
The rich know they have to keep track of where money is moving in the markets and have to move their money accordingly. That's why traders who sold during the housing crisis in 2008 have won so spectacularly. They paid attention and saw where the money was moving. But more than that, they saw the assets in which they were moving, and they realized that the value of these assets was garbage. They knew that they could beat the curve and move their money where they would eventually make money. And in the world of money, the first is always feasting, and the latter always starve.
Know where to spend and win.
This is difficult for the average person to envelop his mind. For generations, they have taught us to save our money wisely. Today, this council is no longer good or wise counsel. Today, if you want to make financial progress, you need to know how to spend your money wisely.
Splattering money wisely, of course, takes away financial intelligence. And this requires financial education. To see and understand the markets, you need to learn the language of money and the concepts that make markets move. You have to learn it too.
The good news is that the information is abundant. All you have to do is look around. Start thinking less about saving and more about how to spend. This fine change of mind will make a huge difference in your financial future.
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