KNOW THE ENEMY

And now for some really bad news.

In a system that creates money from nothing, there is a slow but extremely destructive side effect. This side effect is your #1 enemy in all things financial. Almost everybody knows it exist, but few take it into consideration when making financial decisions. Understanding what this side effect and your ability to counteract its devastating deteriorative effects will make or brake you financially.

And no, its not debt.

The answer: INFLATION

Most people know what inflation is, but for those who don't, here is a quick explanation. Inflation is the reason why an ice cream cone that used to cost a nickel now cost $1.25. It is the slow but inevitable devaluation of money. YOUR MONEY!

With our current monetary system, more money MUST be created so governments can pay interest to the central banks. So more money is printed and the government has to pay back the banks PLUS interest. The only way this interest can ever possibly be realized is to.... print more money. And thus the cycle continues indefinitely, with the result being money typically loses a little bit of it's value every year. Here in the United States money loses roughly 2-4% of its value annually. That means the dollar you have in your wallet will only be capable of purchasing 96¢-98¢ worth of goods a year from now.

In other words, (assuming 3% inflation) if you have $10,000 sitting under your mattress earning 0% interest, in ten years it will only have the power to purchase $7374.24 of goods.

This means your money MUST be earning a MINIMUM of 2-4% interest annually JUST TO KEEP UP WITH INFLATION. If your money is not growing at the rate of inflation, then you are losing money every year in a slow, devastating, and almost invisible manner.

This is the first and primary reason why you should be investing if your not already.