05.21.2008
by Bob
Cash sitting in our wallets, under the mattress and even in many savings accounts is becoming less valuable because of inflation. At 3% inflation (which I think has been the average over the last decade in the U.S.) we are essentially losing money when our cash is not earning at least that amount in interest. So, if you have a savings account that pays 1.5% interest and inflation is at 3%, you are losing spending power.
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05.20.2008
by Bob
“Make it a habit to have more money coming in than going out. You may need to drive the clunker a bit longer or postpone that trip to Europe.” Good advice. It is the simple 3rd grade math problem that is the ONLY way to wealth. If you can start the habit now, you will be in great shape for the rest of your life. If you don’t, you will have to face the music sometime and the longer you wait the more difficult it becomes.
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