With the Dollar declining in value, do you agree that savers are losers? What would you do if this is the case?
It depends on where you live and what you are saving for. If you are in the US and are saving for something that doesn't change in price while you are saving, then the falling dollar doesn't matter. If you are overseas and you need to convert the dollar back into your currency and you get less of your currency, then you have lost value.
And finally, if and when hyper inflation hits, more than likely you will lose value regardless of where you live...
Thanks for the input CarpetDiem.
It is projected that hyper inflation would come soon in the U.S. Basically, those who have been saving their dollars would lose. They will not be able to get the most from their savings. I think investing in silver, gold or oil as a way of saving is really the best option to protect savers from losing the value of their money. But how can an ordinary individual survive if hyperinflation will eventually hit the U.S.? Just a thought.
savers are smart to have a liquid safety valve in this economy. look how many people have lost their job? I have saved and am very glad to know it's there, I have had to dip into it, not easy if it's tied up in non liquid assests.
That implies that if you have some money left over, you should spend it on whatever you want rather than put it in the bank. I'm sure that's not what he means.
I suspect he means that if you have spare money, you should be investing it in something that'll produce income, rather than leave it in the bank where it'll earn next to no interest.
That makes sense, so long as you don't go deeper into debt to fund the income-producing opportunity.
You need to have an some money set aside and liquid. You'll want to be able to cover monthly living expenses for up to 6 months. Some people consider their stock investments as a safety net. The problem with that is you don't want to be forced to sell stock to cover living expenses when the market is down. You want to maintain as much control over sell decisions as you can so you can sell investments on your terms. Robert Kiyosaki is a strong believer in investing in real estate, stocks, network marketing, to generate residual income. These things are great but you still need that safety net if you are not independently wealthy. Robert has the ability to go borrow against his many assets if he needs to. Once you have your safety net established you can start investing in other things to build wealth.
If we had not spent the last 20 years saving, we'd be up a crick without a paddle right now.
NO NO NO..savers are not losers...if you do not save , how will you have anything to use in an emergency situation..I dont use credit cards, with interest..its like throwing your cash into the fireplace..yu dont have to save a fortune, but you have to have something, and what if, at the spur of the moment, a bigg life change happens..then what do you do if your in the negative or have no extra cash..see my point...
and nice posts from what I have read! Anyhow, I have come to prove that savers are losers in today's'US bad economy.
It is common sense, and simply good housekeeping to spend less than you earn, and therefore by default to save some money.
This is good practice independent of the state of the economy. Everyone's Grandmother knows this - pity the poliicians don't listen to theirs
That's stupid. Saving and wealth go together. Now inflation does penalize savers vs spenders, which is one reason why we are having the problems we are having. That's why you buy gold when the government cranks up the printing press. It stores the value of your money no matter how much credit and money the government prints.
With every change there are winners and loser. The bigger the change the bigger the effect.
Hyperinflation (if in fact it occurs) will be the same. Who are the winners? Anyone with debt. As the organisation with the biggest debt is the US Government, don't expect them to get too upset with a high inflation rate. They may just give it a little helping hand.
Now all you need to do is find a bank willing to lend you anything and wait for rising prices to inflate your debt away.
Good luck with that
Cash is always better than credit. Ask people from other countries other than the US where credit availability is almost nonexistent.
This would make a great journal entry.....write this question down, record the answers and explanations.....wait ten years and compare your experiences compared to the questions answers....
The only "winners" are those with the means to pick up property when the market bottoms out. Everyone is a loser in a down economy if they are middle or lower class.
The solution of course is to rid the country of the problem - the Central Bank - the Federal Reserve.
Time to get rid of the debt to pay debt model, and get back on a currency backed by Gold. The Federal Reserve keeps everyone a slave to payments.
http://hubpages.com/hub/The-Most-Appall … al-Reserve
http://hubpages.com/hub/What-is-the-Fed … c-Collapse
http://hubpages.com/hub/Why-are-Taxpaye … overnement
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