Updated: Jan 14, 2019
Let's cut right to the point...Financial ignorance is costly! You need to learn about money and wealth creation if you want to be financially empowered to live life on your own terms.
Here are the top 3 forces that steal the wealth of someone who relies on savings and kills your chance at financial freedom.
Number 3: Taxes, Taxes, & More Taxes!
If you work hard and save money you will have a hard time building wealth because, you will end up paying more in taxes. The government taxes savers when they earn money, save money, spend money, and pass on their money in the form of income tax, capital gains tax, sales tax, and estate tax.
There’s a reason why the government tax's you so much. Saving is not an activity the government really wants to promote because saving does not grow the economy, debt does. So if you’re a saver, you’re going to lose over time because of taxes.
Next let's also consider the silent killer...
Number 2: Inflation - The Silent Killer
Let's take a look at how this kills your savings...
Your savings is immediately eaten away by inflation, so each year it is worth less.
Every year the interest the bank paid you will be eaten away by both taxes and inflation.
$1,000 saved 50 years ago would be worth $137.45 today. That, combined with taxes, means you are in the negative when it comes to the purchasing power of your dollars when you are a saver. That is why working hard and saving money makes it pretty much impossible to become financially free
As a real estate based wealth coach one of my goals is to inform you about the truth. I want to teach and support you in the ways of the wealthy. The government and the media make this stuff seem really complex and out of reach for people because it benefits them...
But now it's time for you to take back control of your financial future and become empowered to live life on your own terms.
Number 1:Fear of loss & Avoiding risk
When you work hard to save money, you place your “security” in those savings. It becomes very hard for those who spend all their energy saving money to break free from is poverty mindset and invest money into assets such as cash flow real estate for fear all their hard-earned money will be lost.
Most people with a poverty mindset who work hard and save often think that investing is risky...
and when you think something is risky, you avoid it like the plague. This keeps you stuck in fear and you lose the opportunity to learn and grow.
Rather than take a perceived risk to grow money exponentially through investing in cash flow real estate, most people take the “safe” route of saving their money because it is what they know and understand.
But just because you know and understand does not make it right...
Who benefits when you save?
Who gets more of your hard-earned money via tax's?
It's time to wake up and do what is right... not what's easy!
But unfortunately, as I have mentioned before, saving is not safe. In fact, it often is the riskiest way to use your money because of taxes and inflation.
Please take the time to learn this stuff. You can do it I promise you... and I am here to help you if you need it.
At the end of the day, why do people save? For most, it is to prepare for retirement. Yet, most of us know that saving itself is not enough to prepare for a secure retirement. This is especially true for young people who will never see a pension from their employer.
Today, everyone is expected to invest for a secure retirement. Unfortunately, our schools do not prepare us to invest wisely or well. So, it is up to YOU to become financially educated.
My friend The rules have changed. In today’s world that we live in, you need a greater level of financial education. I would like to encourage you to increase your financial education and prepare for a brighter, securer financial future. devote some time to learning this stuff and make your money work for you instead of working so darn hard for money that gets consumed by tax's, inflation, and bad habits.
Until next time always remember " The More You C.A.R.E. The More You Earn"
Your real estate based wealth coach,
P.s Whenever you are ready here are a few ways I can help you earn more money, create more freedom, and scale your real estate business
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