I have a dog. Writing doewn much about her isn't required but she is the perfect example of why savers are losers... and how different we think about money here at Rich Dad.
Before you end up sending me hate emails.
I'n in love with my dog. Her name is Cutie. I’m just using her as an example…
The other day I gave Cutie a treat. A dog bone.
You know what? She immediately ran to the back and started digging until she had enough of a hole to bury the bone.
It made me chuckle a little bit. She did it very rapidly like she was preprogrammed to save it.
I think most of the people act in the same way. We are preprogrammed like my dog since birth to save our money. That saving money is the only way to retire someday.
Anyways, I took a closer look at the burial site of her new bone.
Nature had already played its role:
Cutie might have protected her bone from the rest of the dogs but eventually, she ended up destroying the entire utility of the bone. She was unaware of the other forces which are aimed to destroy it. Forces she was either unaware of, never thought about, or just could not see.
She was slowly losing the bone without realizing the fact.
On a similar note, the very same thing is happening with a large section of this world. By saving their hard-earned money to the various economic forces present in the financial market.
Most people are like my poor dad.
My poor dad believed in saving money. "A dollar saved is a dollar earned," he often said.
Throughout his entire life, he aimed into saving his money, not realizing that after 1971 his dollar was no longer money.
You notice that in 1971 President Richard Nixon transformed the rules of money. Earlier in 1971, the U.S. dollar was the real money which was linked to gold and silver, as a result, the U.S. dollar was known as a silver certificate. But After 1971, the U.S. dollar became a Federal Reserve Note -- an IOU from the U.S. government.
An IOU is debt.
In the same year, the U.S. dollar ceased being money and became a currency... it was a debt that those U.S taxpayers had to pay.
Now, almost after 50 years later, Inflation has eaten almost the entire value of a dollar. Prior one dollar was enough to buy many things but currently it takes much more. Since 1971, the U.S. dollar has lost 95% of its value while comparing it with gold. It acts similar to those ants eating Cutie’s bone.
Because the interest which banks provide you against the saving you put into your account is much less than the rate of inflation hits each year, your money is decomposing in the bank vaults. The value of your money is decreasing inside the bank.
Now coming to the Taxes, needed to pay off our debt, eat at your dollar, too. They are like birds digging at the bone.
The idea of the 401(k)-retirement plan is the final straw.
It is the bacteria and algae-eating your savings. The major section of money which was earned in respect with a 401(k)-retirement plan goes to the fund manager, not you. Generally, almost 80% of your hard-earned money went to the investment firms and this makes it worse, they get paid even if the 401(k) loses money.
Now you tell me Who’s the loser? surely not the banks, nor the government, neither the 401(k) managers… It’s all designed to make savers, losers. To Understand the Truth About Money.
