Saving just doesn't work!

<script type="text/javascript">
</script>
<script type="text/javascript" <br=""/>src="http://pagead2.googlesyndication.com/pagead/show_ads.js">
</script>

Save and all will be well. We have all heard that for all our lives. At least I have. Save money and the magic ferry will reward you. That is what we are essentially saying; If you save, then you will succeed. What happens to me is simple. I manage by some shear luck to save a few dollars and put it in my bank account. It sits there and then I feel good for awhile. But then, something happens, and I need that money. All of sudden, my savings is gone and I have nothing again but a big pile of debt. I know this doesn't just happen to me. All of my friends who are better off then me, at least it appears so, claim to have the same problem. So if everyone is going through the same problem, then why is rich people getting richer and the middle class is getting poorer? And I am not talking about 250K or more. Yea, like that is rich. I am talking about the really rich.

The problem is the difference between capital gains and cash flow. Most of us hope that if we save money that some day that money will be worth more. At one time that was true, but not today. Since everything we do is based on debt ... and it is, saving is actually losing. The reason is inflation, inflation, inflation. I think that inflation is actually a tool used by the rich. If you look at people who control real estate, businesses, government, etc., get richer when inflation hits. Middle class people or poor people get hit the hardest and their money is wiped out. They have to continue to spend to live and since the price of living goes up, then more money has to be used. Hence, the poor and middle class lose. But all that money goes some where. It all goes to the rich. I think that the government and the educational system has pulled the wool over our eyes. I am sure their are some who are more to blame then others and some who probably have no idea, but the idea that the rich are taking every ones money and they, the government, must redistribute it to help us live, is the biggest wool I can think of.

For example: If the government raises taxes, where does that money go first? It first goes to replenish the coffers of the government. Next, it goes to make sure the supporters of the government officials, aka, big business and the super rich, and then, if any money is left, it is used to create more government agencies that are supposed to help us but in actuality, cost us more money in taxes to keep going.

For example: The educational system teaches children to get good grades, work alone, go to college, get loans, and then try to get the best job they can. So when a child goes to college, like he or she is told, they take out a loan. The bank steps right in to help. Then the money flows to the colleges. Then, after the student graduates, he or she goes to work for more rich people to grow their businesses. Let's see where the money goes: Loans make the bank rich; tuition makes the college boards and investors rich; highly trained workers leave colleges in debt to work for the same people that are making their money from them in the first place.

Savers are just not getting ahead because that is not the new America. The new America is a place where cash flow, not capital gains, makes us rich. Cash flow is cash that comes in month after month. Capital gains are profit that is only realized at the sale of a stock or piece of real estate. The reason the government is in so much trouble is because they do not understand this simple idea. You must spend your money on things that will give you monthly cash flow. Cash flow is the life blood of any household, business, government, or country. Once the cashflow every month is gone, it doesn't matter how much you are worth.

The point is saving does not create cash flow. I get nothing from saving my money. The people who benefit from my savings is the banks. They get to use my money and increase it to loan out. All they pay me is .001 percent. And that is not a joke. We are being fooled to save money so that the super rich can get richer.

In order to play the game, stop saving money, and start buying assets that put money into your pocket every month.