Robert Kiyosaki, the author of “Rich Dad Poor Dad,” recently sparked debate, claiming that saving money makes people poorer. He argues that fiat money, which is not backed by gold, benefits the rich while making the poor and middle class poorer. Experts explain that cash loses value over time due to inflation.
Collin Plume, founder and CEO, stated, “Cash loses value by the minute — probably the only asset in the world that does so. So, saving cash actually means losing purchasing power or diminishing wealth.”
Kiyosaki urged investing in assets like gold, silver, and Bitcoin, which he calls “Real Money.” These assets hold their value better than cash. Peter J.
Kiyosaki’s investment strategy insights
Klein, founder and CIO, noted, “Gold and other precious metals serve as a hedge against not only inflation but also geopolitical flare-ups.”
However, experts still recommend keeping an emergency savings fund. A personal finance expert Melanie Musson said, “Having money available instantly in a savings account is essential.
You can’t pay your utility bill or insurance deductible with gold.”
The key is building a balanced portfolio based on personal risk profiles. This might include a mix of high-yield savings accounts, CDs, stocks, bonds, precious metals, and even crypto. CK Zheng, co-founder and CIO, advised, “When you invest, you need to make sure you can afford any potential loss that may occur in the short term.”
In summary, while investing in assets like gold, silver, and Bitcoin can protect against inflation, maintaining an emergency savings fund is still essential.
A diversified portfolio can help achieve financial stability and growth rather than relying solely on cash savings.
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