Why Most People Go Broke?

how to get rich

Do you know what is the biggest cause of suicide, divorce and depression and yet no one talks about it?

It’s called Financial Illiteracy.

Here are some stats:

  • 76% of Americans live paycheck to paycheck
  • 50% of Americans have no money in savings at all
  • Seniors over the age of 65 that are looking to retire have less than $60,000 in savings

Let me tell you a sure way to go broke.

On average, the price of things goes up by 3% a year. It’s called Inflation. Which means if a chocolate bar costs you $1 on the 1st of January, it will cost you $1.03 at the end of the year.

If we deposit $1 on January 1st at the end of the year that money will grow to $1.0003 after the interest that paid by the bank.

Which means at the end of the year you can no longer afford that chocolate.

Every year your money sits in the bank, it loses over 2% of its value which means if you have a million-dollar in your bank account then you will lose $20,000-$30,000 with the save investment called “Bank”.

Rule #1 of Investing: Don’t invest money when you are guaranteed to lose.

So why banks want us to lose money? Because every time you invest money, they lend it out to someone at a much higher interest rate and pay us nothing and we want to borrow money from them (in terms of the loan), they charge us 3-4% each year.

Apart from this, all banks have figured out a way to use something called fractional lending to turn that one dollar you deposited into a lot of dollars this way they can loan out that $1 again and again and again making 4 per cent every time to lend it out while you continue to lose money maybe that’s why the banks spent 17 billion dollars a year in advertising so they can convince us to pay them so they can become rich while we go broke.

People wait their whole life so one day they can retire and live the life they want all while sacrificing their time their health and their youth but why not live life on your terms getting paid what you want so you can do what you enjoy.

Seem unrealistic? Yeah, that’s what the majority of people say, and which is why it’ll always be unrealistic for them.

As Stephen Covey says: “You have to start with the end in mind”.

If that’s the type of life you want to live, then you must work towards that goal if you don’t want to live like the majority then you can’t keep doing what the majority does.

It’s not going to be easy but you can subscribe to our newsletter so you will be notified as soon as we post more financial tips to live the life you want.

Be the first to comment

Leave a Reply

Your email address will not be published.


*