When you consult any Financial Planner or Financial Advisor, he/she will advise you to save money. Now, Saving Money is a good advise. There is nothing wrong in it. But let me tell you that after 1971, this advise is no longer remain effective to ensure any kind of financial success in your life.

In fact, if you save money, You are a loser. In short, Savers are Losers.

The Modern Financial advise is - “Save & Invest”.

The reason why most of the people struggle financially today is, because they follow the age old financial advise that is no longer remain effective after 1971 – Save Money.

Now, Let me explain you that, Why Saving Money is no longer an effective financial advise?

Well, See. Before 1971, The US Dollar was backed by a Gold. So Saving $ 10, 20 or 100 Bill means you are actually saving that much amount of gold. And during the economic instability, if you lose faith over the gold, you could go to bank and redeem your dollars in exchange of gold.

Backing Dollar with a Gold helped to beat the inflation. But in 1971, President Nixon announced that, “United States will never redeem its dollars for Gold because the dollar is backed by full faith of United States Dollars.”

Well, What it means? Most of the people could not understand the meaning of this statement. They thought that, this means that the government is now supporting them and the government will now take care of them.

But well, Smart Investors knew that what it really mean?

Well, It mean that, Dollar was now a free float currency. It was no longer backed by any gold. In other words, US Federal Reserve can print any amount of Dollars just out of thin air according to the demand of Businesses & Economy.

It means that, US Government can anytime print and dump literally millions, billions and trillions of dollars in the economy. Now, Have you ever thought that, Why Saving is no more advisable?

This is because, every time, When the US Government prints Dollars, it will dilute the purchasing power of existing dollars in the economy and this will make your saved money (dollars) worthless over the time.

The Modern Financial Advise is - “Save & Invest”.

This is because if you buy Assets out of your money (Buying assets out of your money is known as Investment), these assets will appreciate in its price over the time and thus maintains and even increases your purchasing power over the time.

Assets can be anything such as Stocks, Bonds, Gold, Real Estate, Mutual Funds, Art, Antiques, Businesses, Web Properties, Copyrights, Rental Properties or many other things.

The purpose behind this article is to educate you that, Only Saving Money is not sufficient. Now, You have to Save and Invest your money also. Because saved money will loose its purchasing power over the time. But if you have invested your money in some asset, this will not only maintain your purchasing power but also multiply your wealth….