Let’s explore more of what Robert says about keeping your money safe!
Why Should You Be Careful About Your Income Choices?
Robert explains that there are three main types of income: earned income, portfolio income, and passive income. It’s essential to know the differences, especially when you want to protect your money!
Robert believes it’s not wise to let the government handle your financial future. He thinks the government doesn’t do a good job and prefers to manage his own money. The government often lacks financial knowledge and spends the money it collects without much thought. Those in charge know that many people aren’t financially educated, so they take advantage of that to become rich using your money.
Banks were created to keep your money safe from thieves, right? But what if you found out that your banker was actually taking advantage of you?
Robert asks us some thought-provoking questions: “What if you learned that the people you trust with your money are secretly taking more than you realize, and doing it legally?”
He talks about investigations into 401(k) plans and mutual funds offered by banks we trust.
In an article from March 14, 2007, it stated: “401(k) plans don’t have to clearly show how much participants are being charged in fees. These fees include costs for audits, account maintenance, and more!”
Robert points out that the problem is that even your employer might not understand these fees because many are hidden.
So he asks, “How can you be expected to know or understand these fees?”
In many ways, banks are the biggest financial predators. Every day, they take wealth away from savers by printing more and more money.
Do you want to know how banks make a lot of money?
Robert gives an example: “If you deposit one dollar and the bank pays you 5 percent interest on that dollar for a year, the bank can lend out twenty dollars and charge you 20 percent interest when you use your credit card. The bank pays you 5 percent for your dollar and makes 20 percent on the twenty dollars it lent out. That’s how banks get rich.”
This also leads to inflation. The gap between rich and poor grows larger. Right now, people who save money often lose out, while banks benefit.
Do you want to know what makes someone successful in this situation?
In today’s world, it’s important to learn how to borrow money to buy assets because saving money isn’t as effective anymore. In other words, smart borrowers win in today’s economy, not those who just save in a bank account.
