Tomorrow, One Hundred Thousand Dollars, Bruce discussed on The Money Advantage Podcast
To be in a position where you just have a lot of risk or you're taking on a lot of risk to try to overcome or outpace inflation or run away from something by spending today so you won't have to spend more tomorrow. I mean i loved your example. Bruce about the the candy back or the candy bar in the bag and if we think inflation is coming in our dollars will be worth less in the future. There can be the tendency to say. Well i got to spend today in. If i spend to buy the things that i might want tomorrow today. Then am i being reactive to what is speculation or a projection of what could potentially happen. Now we don't want to be blind to this idea either. I mean obviously. There's been some really challenging situations of inflation throughout the world like hungary and venezuela in zimbabwe that there was hyper-inflation. We're not there right now. In this situation what we need to do is keep a level head stay committed to the fundamentals which is paying yourself first saving a portion of your income. You wanna be around twenty thirty percent of your income or even higher. You're saving you're not spending today in you're putting to work for the future and when you're saving that income then you want to be able to put in place is giving you as much safety. Liquidity and growth is possible. Now if you're only putting it in a savings account in the bank you're not keeping up with inflation with that you could say that's risky because i'm putting my money in my dollars in a place where they're losing value even though maybe it's one hundred thousand dollars in the account and i it still says one hundred thousand dollars and it's still reads on the line that hundred thousand dollars but if it feels like less because of inflation are you really doing yourself a huge service so what you wanna do is put them into places that are still safe. That are liquid you can access and use because you need to be able to access capital if you wanna financially healthy and safe position in then have as much growth as possible and that is the number one reason why we have turned to using private banking or we call it. Infinite banking formerly called infant banking as well or using a cash value life insurance policy that will continue to grow with interest and dividends at rates. Much faster than any other consistent steady predictable savings tool that.