Spend More Money than You Save — To Avoid Ruining Your Financial Future

“Spend less than you earn” is a cliche money tip repeated over and over. I must have read it fifty times this year alone in different blog posts.
I disagree.
You should spend the money you earn like an out of control drunk. Well, okay, let me clarify…not quite.
My advice is counter-intuitive: spend all the money you earn.
The next worst piece of personal finance advice is “save money for a rainy day.” Really Joey know-it-all. Excuse me while I vomit.
In a zero interest rate environment, where the government is creating trillions of dollars out of thin air (money printing), that acts as a hidden tax, you want us all to-save-money? Are you freaking kidding me?
Now is the time to spend every dollar you have.
Every dollar you have sitting in a bank account is rotting to death. Your currency is evaporating. Your currency (dollars) is like a melting ice cube. Every day you keep a dollar in your bank account it’s inflated away.
What If What You Were Taught About Inflation Was Completely Wrong?
Well-known CEO of Microstrategy, Michael Saylor, said something that completely blew my mind.
In a recent interview he explained that we currently measure the amount of inflation using CPI (Consumer Price Index). He says this is faulty thinking. This is how he frames it: “If I gave you a $1 million today, would you go and buy $1 million of Domino’s Pizzas with the money? Nope.” You would spend most of the money on assets — property, stocks, gold, bitcoin.
So why the heck do we measure inflation using the cost of a basket of consumer goods and services? This is how your purchasing power is taken away and the valuable work you do is lowered in value without you knowing.
If you measure inflation in 2020 based on an everyday consumer investment like Apple Stocks, then inflation in 2020 was 62%. Now that’s a little drastic. What if we measured inflation based on the increase in the M2 Money supply of US dollars? Then inflation was 26.67%.
Or maybe you are a little more conservative. But what we do know is inflation isn’t 2% or even 3%. It’s much higher, especially in a recession.
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Image Credit: Fred Economic Research
You will lose if you save money.
Here’s what is even more challenging to get your head around:
You will still lose a lot of money if you invest it in obvious assets, like stocks in an index fund. The rate at which prices go up and the money supply increases is a lot higher than you think. The only way to fight inflation and money printing by governments is to invest in assets that beat them.
My Amazon stocks went up by over 100% in a short space of time. I was fooled. Then I thought to myself “did your stocks really go up that much because you’re so damn smart, or is something else going on here?”
Here’s What to Spend Your Money On
1. A financial education
It doesn’t matter how much money you make. It will be taken away, without you knowing, if you don’t understand how money works.
The good news is you can use the money you earn to buy a financial education. There are a tonne of finance books you can read. Or you can use these free Youtube channels:
Real Vision Finance
Stansberry Research, hosted by Daniela Cambone
Nugget’s News
The best thing you can ever learn is how the currency you trade your time for works and operates. It’s intentionally complex. Break through financial complexity so you can find ways to buy back your time, stress less, and hang out with your family.
2. (A) Assets (B) Productive assets
Non-productive assets store the value you create and protect it. These include things like artwork, gold and bitcoin.
Productive assets create value, and you get paid an income stream from them. These include real estate, stocks, royalties for creative work, and owning a business.
The best productive asset of all time is starting a business. But I get that not everybody wants to be a business owner which is fair enough. Don’t let hustle porn force you to believe owning a business is the only way.
One of the wealthiest people I know has never owned a business. They are a mid-level manager in a medium-sized company with zero career aspirations. They took the modest amount they earned and put it to good use. Now, work is optional to them. What’s crazy is, they don’t own a Ferrari or live in a Malibu holiday house.
Their strategy to reach financial freedom was unconventional: Buy less stuff. Own less stuff. Get to zero debt.
Conventional Money Tips Are Stupid
Money put to productive use is the best use.
Saving money is stupid.
Spending less than you earn is dumb.
Investing is dumb, too, if you don’t get a financial education first.
This is what is so frustrating about conventional financial tips on blogs — they offer cliche advice that can ruin you financially. Purchasing power is a more important concept to grasp. Money needs to be put to work. And just like your life, you’ve got to select the right form of work to put your money to meaningful use.
In a world of zero interest rates — that are slowly becoming negative interest rates in most countries — if you don’t learn about money you will be bitch slapped by hidden tax all the way to retirement. You will be forced to work harder and longer. Instead of working smart and less, doing work you enjoy and choose based on the type, not the dollar value.
Here is a financial puzzle to lose yourself in that will change your life:
If you were to send money to your family 100 years into the future, what are the options, and which one works the best?
Learn the answer to that question.
Spend the money you earn on a financial education, followed by real assets.
Bonus tip: Look at what Wall Street does, not what they say.
Your financial future is based on what you know about money, and how you apply that knowledge — not some punk blogger dropping cliche rich dad poor dad money tips from the 90s, from a completely different world to the digital one we live in.
This article is for informational purposes only, it should not be considered Financial or Legal Advice. Consult a financial professional before making any major financial decisions.. . . . . . . . . . .