Earning More v. Increasing your Purchasing Power

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The goal should be to maintain or increase our purchasing power after factoring in the effects of taxes and inflation.

We use to measure money by how much we earn. That is why the goal of most of us is to always increase our earnings. But it is more than just that. The goal should be to maintain or increase our purchasing power after factoring in the effects of taxes and inflation.

 

I remember the story of two families. The first one is the richest in town before WWII. They have hundreds of thousands of cash in the bank. On the other hand, the second belongs to the middle class. They have two bars of gold passed on to them by their grandparents.

 

After WWII, the first family was left with sacks of money that are useless. They need to carry baskets of it just to buy a loaf of bread. While the second family was able to sell the bars of gold for a hefty amount enough to buy big parcels of lands for farming.

 

There is a reason why instead of accumulating a lot of cash, we should put our wealth on assets which are better stores of value. In addition to gold and other precious metals, we should diversify into  #Bitcoin and blue-chip altcoins, lands, stocks and digital securities.

 

(This is not an investment or financial advice. Kindly do your own research diligently.)

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