Robert Kiyosaki, the author of “Rich Dad Poor Dad,” recently shared his thoughts on saving money and investing. He believes that saving money can actually make you poorer due to the declining value of cash. Kiyosaki explains that the U.S. dollar is no longer backed by gold or other physical assets.
This means that cash loses purchasing power over time. One expert states, “Cash loses value by the minute—probably the only asset in the world that does so. Saving cash actually means losing purchasing power or diminishing wealth.”
Instead of saving money, Kiyosaki suggests investing in assets like gold, silver, and Bitcoin.
He calls these “Real Money” because they hold their value over time and can keep up with inflation.
Investing for financial independence
For younger people, experts say that investing is more important than saving to become financially independent.
One expert notes, “For the younger generation, investments are far more important than savings to become financially self-sufficient.”
However, experts also agree that it’s important to have some cash savings for emergencies. They recommend saving three months to one year’s worth of living expenses in a high-yield savings account. Melody Musson, a personal finance expert, says, “Having money available instantly in a savings account is essential.
You can’t pay your utility bill or insurance deductible with gold.”
Experts suggest creating a balanced portfolio that includes cash savings, stocks, precious metals, and cryptocurrency. One expert shares, “For every dollar I put into the stock market, crypto, or other ventures, I invest a dollar in gold or silver. The idea is to have an asset you can count on when the economy goes south.”
In summary, while having a savings account is important for immediate needs and emergencies, investing in diverse assets can help protect your wealth and hedge against inflation in the long run.
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