Here is a really awful truth…
There is one set of rules for the rich and another set for ordinary people.
The people who are most worried about money are those playing by the old set of rules. If you want to feel more secure about your future, you need to know the new set of rules—here's the first new rule of money.
Old Rule #1: Save Money
After 1971(when the dollar was no longer backed by gold), the U.S. dollar was no longer money, but rather a currency. As a consequence, savers became losers. The U.S. government was allowed to print money faster than it could be saved.
When a banker raves about the power of compounding interest, what he or she fails to also tell you about is the power of compounding inflation.
Saving money is another way the government takes your money.
New Rule #1: Spend, Don't Save
In the new rules, it is more important that you know how to spend your money, not just earn or save it.
In other words, people who spend their money wisely will always be more prosperous than those who save their money wisely.
Of course, by "spend wisely" we mean invest or convert your money into long-lasting value.
The rich understand that in today's economy you cannot become wealthy by sticking your money under a mattress—or even worse, in a bank. They know that the key to wealth is investing in cash-flowing assets.
Today, you need to know how to spend your money on assets that retain their value, provide income, adjust for inflation, and go up in value—not down.
Rich Dad
