According to Robert Kiyosaki, Savers are Losers-Do you Agree?
68- eaglehubber
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With the Dollar declining in value, do you agree that savers are losers? What would you do if this is the case?
82- CarpetDiem
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eaglehubber wrote:
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...
96- rebekahELLE
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eaglehubber wrote:
With the Dollar declining in value, do you agree that savers are losers? What would you do if this is the case?
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.
60- Marc Abrams
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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.
94- Jane@CM
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If we had not spent the last 20 years saving, we'd be up a crick without a paddle right now.
89- B.C. BOUTIQUE
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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...
94- Marisa Wright
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eaglehubber wrote:
With the Dollar declining in value, do you agree that savers are losers? What would you do if this is the case?
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.- 68
- eaglehubber
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CarpetDiem wrote:
eaglehubber wrote:
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. - 68
- eaglehubber
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and nice posts from what I have read! Anyhow, I have come to prove that savers are losers in today's'US bad economy.
91- sannyasinman
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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
97- Uninvited Writer
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Who can save any money?
Uninvited Writer wrote:
Who can save any money?
Stole my line!
82- mikeberserkr
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Uninvited Writer wrote:
Who can save any money?
EVERYONE!!!! (low or high earning!)
If you save the money and DON'T INVEST it, your money loses against inflation. Period.
If you save the money and grow it in investments, and your diversication of investments is good, then you get to fight against inflation well.
Good luck!- 82
- mikeberserkr
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Btw is the dollar still backed up by gold? that is my main concern right now....
89- EmpressFelicity
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mikeberserkr wrote:
Btw is the dollar still backed up by gold? that is my main concern right now....
No:
http://en.wikipedia.org/wiki/History_of … tes_dollar
"In early 1933, in order to fight severe deflation Congress and President Roosevelt implemented a series of Acts of Congress and Executive Orders which suspended the gold standard except for foreign exchange, revoked gold as universal legal tender for debts, and banned private ownership of significant amounts of gold coin. These acts included Executive Order 6073, the Emergency Banking Act, Executive Order 6102, Executive Order 6111, the Agricultural Adjustment Act, 1933 Banking Act, House Joint Resolution 192, and later the Gold Reserve Act[2]. These actions were upheld by the US Supreme Court in the "Gold Clause Cases" in 1935[4]."- 82
- mikeberserkr
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Thank you EpressFelicity so where is the manipulation of the value coming from then?
- 89
- EmpressFelicity
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mikeberserkr wrote:
Thank you EpressFelicity so where is the manipulation of the value coming from then?
Not sure I understand - value of what?
88- ledefensetech
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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.
- 82
- mikeberserkr
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EmpressFelicity wrote:
mikeberserkr wrote:
Thank you EpressFelicity so where is the manipulation of the value coming from then?
Not sure I understand - value of what?
How does the dollar have VALUE then if it is not backed by gold?
- 89
- EmpressFelicity
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mikeberserkr wrote:
EmpressFelicity wrote:
mikeberserkr wrote:
Thank you EpressFelicity so where is the manipulation of the value coming from then?
Not sure I understand - value of what?
How does the dollar have VALUE then if it is not backed by gold?
It just has a fluctuating foreign exchange rate value against the world's other major currencies, which AFAIK are all fiat currencies like the dollar (a fiat currency is one that isn't backed by anything solid like gold or silver).
This is fine as long as nothing causes the dollar to fall drastically against the other currencies. If anything catastrophic happened to the American economy, then obviously that could happen. Likewise with the pound in Britain or the Euro etc.
Fiat currency is basically a bit of a confidence trick.
