The US Dollar has lost 93% of its Purchasing Power since 1918

[ImageSource: Watchingtheworld.org]

The US Dollar has lost its 93% of its purchasing power since 1918.

As I always say that, Saving Money is the age old financial advise which is no longer effective to ensure any kind of financial success. In fact, if today you follow this advise, You will surely meet the financial disaster and get poor.

I have a proof of my above statement. See the above diagram.

If you has saved and hold dollars since 1983 than up to now, it has lost its almost 93% of the purchasing power making you poor.

But well, if you had saved and invested this dollar in the S&P Index fund or even in gold than it had not only maintained its purchasing power but also multiplied by several folds up to now.

So this is the power of investing and that’s why I advise people that saving money is worthless now. I personally advise people to invest your money. Buy some kind of asset (Stocks, Bonds, gold, real estate, mutual funds, businesses, art….etc..) out of your money and keep that asset for years.

Asset can preserve your purchasing power by beating the inflation. So the Modern financial advise is,

Save & Invest your Money…!!!