Money is fake. Get that through your head -- it's not real, it's hardly even paper these days. Money isn't real -- it's credit.
You take your money, put it in a bank, they make a record of it -- based on the trust that they are accurate -- you have credit to purchase things up to the amount you have stored in the bank.
If they bank believes in you, it offers you money from the future of your life so you can buy bigger things now. That's what you think of as credit, but is just monetization of your existing credit bearing ability.
Now, if you take money from you in the future, it's a pretty dumb thing to spend it on things that don't retain value. Like just about everything in your house, your car, and everything you consume. If you're robbing yourself from the future to buy things that don't retain value -- you're basically making yourself poor in the future.
See -- you can't make more than you're going to make in your life -- that's the limit. Everything you will ever make is what you'll make. So, if you take $1,000 from next year and eat it now, next year, you'll be $1,000 behind.
PLUS, you'll have to pay the people who pulled that time warp for you -- that's interest. So, not only have you taken that money from you in the future, you're also taking money from you again to pay the people who lend you that future funding.
So what can you put your money INTO? There's only one thing you should put your money in -- PAY ATTENTION ...
Things that retain value. That's it. Everything else is noise.
What kinds of things retain value?
A house, for the most part, even with this crisis, retains value or will recover value after the crisis is over.
Real estate, raw dirt of the Earth itself -- retains value.
Stocks in stable companies retain value.
But how, Malcolm, do I find stocks in stable companies? Well, that's the trick isn't it?
Squint into the future -- what companies will most likely still be here? Coke? IBM? Google? Who knows -- that's up to you ... but when you put your money in those things that retain value ... you don't lose it.
The trick is to find those. Not big mondo super stocks that will grow and make you rich -- just ones that won't tank.
...oh, and btw -- stop taking money from your future -- leave it there -- you'll need it.
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