You’ve heard the saying, “cash is king,” but what if I told you it’s not? In fact, cash is garbage — inflation eats it. $1,000 in 1960 had the purchasing power of over $8,000 today.
This is why saving money is useless. Personally, I don’t save money; I only store it for a short period of time until I can invest it.
Saving cash is like saving a legal pad — it’s worthless because money, like any paper, is only good when it’s used. If you leave money in savings too long, it disappears.
The infamous cartel boss Pablo Escobar was one of the wealthiest drug lords in history, bringing in $420 million a week in revenue. He spent $2,500 a month on rubber bands just to hold the stacks of bills together, and he wrote off 10 percent of his cash as lost because rats would eat it or it would be damaged by water, or lost.
Saving your money in a bank isn’t much better. It takes 833 years to double your money at today’s bank rates. You can’t even get 1 percent in a savings account. Inflation eats far more than that! You’re literally losing money while saving it.
This is why you should only temporarily store your cash, and then you need to invest the storage.