Savers are Losers!
Robert Kiyosaki (Rich Dad Poor Dad) is famous for his saying “Savers are Losers”
He’s absolutely right and here’s why…
The buying power of what $1.00 can buy is quickly diminishing. Every dollar that Justin Trudeau prints these days to support programs and pay interest on our enormous debt diminishes the value of $1.00 and what you can purchase with that. This is called buying or purchasing power.
Let’s take my small double double coffee at Tim Horton’s as an example of this.
Not even 10 years ago I can remember buying that Tim’s coffee for 65 cents each day at the drive-thru in Ingersoll… lol. Today, that same cup of coffee cost’s me $1.65 or more!!! Now, remember this… the Tim Horton’s coffee didn’t change! Yes, the cost to produce it has gone up but it’s still the same old cup of coffee! The problem is it takes a whole lot more of my hard-earned dollars to buy this same cup of coffee.
According to the Bank of Canada, INFLATION is defined as “the persistent rise in the average level of prices over time.” The inflation rate in Canada currently sits around 2.27%. The price of goods we buy is increasing on average 2.27% every year.
What does this mean? If your money is sitting in savings accounts or investments that yield less than 2.27% interest annually, you are actually losing buying power of every dollar you have in those investments or cash hidden under your pillow!
This is why Savers are Losers !!! Some people think that storing money away in savings accounts, GIC’s, low yielding bonds, or other “safe” investments is a good idea! That’s the advice we receive from our parents, bankers, and some financial planners to preserve our money. Bad Idea !!!
The problem we face is that it’s hard to find safe investments that are higher than 2.27% that we can control and understand. These products exist… you just have to educate yourself on how to find them.
Remember this… it’s a great idea to “save” money provided that money is employed in the right investments. That’s called having your money work hard for you as your employee. Think of money sitting in low yielding accounts/products as your lazy employee you need to fire!!!!
If you are looking for ideas on where to find high yielding safe investments for your employees (your money is your employee) reach out to me and I can offer some suggestions for you.
Kind Regards,
John C. Heeney, CEO Glenroe Lending
Glenroe Farms Limited ( Private Lending )
We build LEGACY to create TRANQUILITY
john@glenroelending.ca
519 808 7370
PS… if you have someone you feel could benefit from these investor blogs please feel free to send me their email to be added to our list. We are more than happy to educate as many people as possible if they are willing to learn.
