Our economy is in the midst of a huge shift; one that will require us to adapt. The first step in adapting is gathering information, as we won’t thrive in a new and possibly volatile economy with status-quo thinking and investing. If you do the research, find innovative financial strategies, and then implement them, you’ll have a better chance at navigating your cash management and not be stuck with the same growth or losses as everyone else.
There are three major wealth destroyers that can derail your investments and financial growth. We’ll cover these aspects below and also mention techniques that can help combat these obstacles, allowing you to grow wealth and increase security.
- Inflation
We’ve been conditioned that we need inflation to build a stable economy, and the Federal Reserve has an initiative to encourage inflation each year. They claim that to “stimulate” the economy we need prices to slowly increase. But the stark reality is that inflation makes everything cost more. We must work harder to pay for the same products or services. How does this relate to your investments?
When prices go up three percent, it doesn’t seem like a lot. Over time this amount compounds. The question to ask is, “Are my investments guaranteed to keep up with inflation?”
Being aware of this wealth destroyer and learning about strategies to beat inflation will give you the upper hand in wealth building. We have collected a wealth of information in our eCourse Infinite 101® that details strategies that help you do just that. In this course, you’ll learn the specifics about strategies that keep your investments up with inflation and still allow you to access your cash for other opportunities.
- Taxes
In 1913, the Federal Reserve was created. Coincidentally or not, this is also when income tax and the IRS were created. Pointing out the obvious, when you pay taxes you’re giving money to the government that you could be using yourself to earn interest. Over time, you lose a lot of money. It’s a massive opportunity cost . . . and yes, unavoidable. But what you can do is find out if you regularly pay the government more than you have to.
Get to know the tax code and how your investments and distributions are affected or find a partner who knows the tax code. The tax code is there to guide you and help you pay less in taxes. Almost without exception these partnerships pay for themselves and then some with the money they save you in taxes.
- Fees
You already know that Wall Street and the financial services industry charge fees to invest your money. What you may not realize is how these seemingly small commissions and fees eat away at the money you think you are growing. Minor fees can do major damage over time.
Our advice is to scour your account statement. If you don’t see a comprehensive list of all investment fees, demand it. Anyone handling your investments with your best interest in mind will give it to you. With this information, you can know exactly what it’s costing you to “grow” your money and then find ways to avoid being attacked by fees and be better equipped to choose your investments wisely.
Few things are as important as understanding how your money is working for you. It’s also important to look at the factors that are eating away at your savings and investments and take steps to limit the damage.
If you close your eyes to new ideas and just hope you have the best financial strategies—that may work . . . but probably not. Instead, take a few minutes every week to learn a new principle or concept and you will reap huge dividends. Here’s your first principle. Banks and brokers have conditioned us to believe that when we earn money we need to put it into the bank or the stock market for safekeeping, because it benefits banks and brokers most. The reality is that they take your money and use it to make more money for themselves. The single concept of “being your own bank” can turn this system on its head and allow you to make that money instead of the bankers.
We’ve put simple videos together in the eCourse to show you how it’s done. It only takes 2 minutes to sign up and receive access to video tutorials, articles, and podcasts. It literally costs you nothing to become educated on this strategy as well as how to minimize wealth destroyers!
Take advantage of this FREE resource by clicking below.
