Saving Money Is Obsolete!

Growing up in a third-world country like the Philippines

, money is always scarce. When we were young, our parents taught us to save money and not waste it on toys that become another junk in the closet when we become weary on them. I remember that even in school, each of us was given about a foot-long, fat bamboo stalk as piggy bank.

Our teachers motivated us to save and up until a few months ago in my 40-ish life, that is also what I taught to my kids- save! It was only after watching a video of a bestselling author that I gave a second look at this tradition. It is there that I found out that saving money is obsolete!

With the trend happening all over the world, especially in the US, the value of money is rapidly decreasing. This was primarily due to the change that happened with the US Dollar way back in 1971. Before the end of the Vietnam War, Former President Richard Nixon, ordered Secretary of Treasury John Connally to "suspend temporarily" the currency conversion of the American dollar, as his Government's response to the problems of job creation, inflation and protection of the US Dollar from speculators.

This meant that the Dollar is not anymore backed by a physical commodity, such as gold or gold reserves and thus printed at will by the US Federal Reserve Bank to pay for their burgeoning debt at the time. It was a great solution, but in the long-run, the economic effect of this change in Monetary Policy is what we are presently experiencing.

Simply put, the more the Dollar out there, the lesser becomes its value. Further, when we put a value in the money we save today for instance, it will surely be less when we use it in some future time. It is because of this, that we say, saving money is obsolete. The value of the dollar you saved becomes cheaper as time goes by.

How can we overcome this? The bestselling author offers "funds hedging" instead of savings as one of the proven and tested strategy in putting a stop at money devaluation. A hedged fund is a fund invested for the purpose of positive return.

Though volatility and risks are realities in any investment, most hedge funds seek to limit these while trying to hold on to capital investment, aiming for positive results in the face of all market conditions. There are many investments out there! But before diving into its seas, we have to learn how to swim first.

The internet, as a resource, never sleeps and always ready to teach us Investment 101. What we only need is a positive mindset to become successful in life. Saving money is obsolete even if we do not invest. If we do not do that then who loses? It is in learning investment, doing investment and reaping the harvest of our investments, that we can assure our future and the future of those that we hold dear.

by: acobregon

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