This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
Do you invest in assets or liabilities?
The Saver’s Trap: Savers
There is a massive problem with this mentality. I recently published the article, “The Saver’s Trap,” which explains why saving money is the equivalent of burning your money.
There are no financial rewards in saving because inflation will rapidly deteriorate your cash reserves. Though you won’t physically see your money disappear, when you buy, you will feel the purchase more because you have less buying power.
Savers think investing is risky, and so do ignorant people. When we know less, we do less. When we know more, we do more, and we accumulate more.
When it comes to investing, it’s risky not to take a risk.
The Money Destroyers: Spenders
Then you have a second cohort of people. These people are worse than the savers. These people are more than comfortable investing in materialistic items, gambling, and participating in overconsumption, which often leads them into debt.
Why do most people feel comfortable giving their money away to pointless things versus using it as a tool to make more money?
“The greatest sin of mankind is failure to use their greatest asset: the mind (Napoleon Hill).”
People who fear investing in assets but not liabilities fail to utilize the infinite intelligence within their minds.
What Investing Can Do For You
Investing is mostly beneficial. Yes, there are losses here and there, but the wins always outweigh the losses. What goes down must always come back up. There is no need to fear investing; start small, be consistent, and watch your nest egg grow over time.
Benefits of investing:
Build passive income.
Build wealth.
Close the wealth gap.
Create wealth faster through compound interest and higher returns.
Build financial independence.
Create more time in your life and allow yourself to pursue other ventures outside of traditional work.
Most people think of investing backward. They don’t believe it works, think it’s too complicated, don’t understand it, and don’t want to invest time into learning how it all works.
Ignorance is okay until it hurts you. If you don’t understand something, take time to learn.
One thing I know for sure is that most of the stuff we buy will not contribute to our financial future.
If we could spend more time investing and less time consuming, the economic well-being of the world would be much healthier.
Make a prudent decision. Prioritize investing over-consuming. Prioritize learning over remaining in ignorance.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.