What is a rainy day?
Rainy day is the day when things not working well and you are in need of scare resources.
Rainy day to us might be the day when we are short of money.
What is real money?
Money is the oxygen of life.
Without oxygen, life on this planet will not be possible.
Therefore, without money life will be very difficult or impossible.
Why?
Money is not everything, but everything needs money.
We need money for
1. buying goods
2. storage value
3. societal status
4. credit
5. annuity or compounding.
If you can compound all the profit of your principal, you will be rich as compounding is the 8th wonders of the world.
Like the saying says "borrowers are always indebted to lenders".
Therefore, the way to be rich is neither a borrower or a lender.
Why?
In a rainy day, if you are a lender, you are in deep trouble, needing to return more, even if you are in debt.
In a rainy day, if you are a borrower, you are unable to get back your money borrowed and might have to accept a haircut.
If you are a saver, you must make sure that money that you store will always have storage value.
What is a good storage value?
Good storage value is something that will not depreciate with time.
The only things that do not depreciate with time are only silver and gold.
Therefore, the best asset to keep for a rainy day is silver and gold.
The second best asset is foreign currency, which is backed by silver and gold or highly acceptable and convertible.
Why?
In a time of crisis, money or foreign currency will become hard assets.
The worst foe during a rainy day is the bank, the bank will remove your umbrella during the rainy day by calling back loan when you are having cash crisis.
Be prepared for the rainy day.
God bless you,
Dr Lion.
Rainy day is the day when things not working well and you are in need of scare resources.
Rainy day to us might be the day when we are short of money.
What is real money?
Money is the oxygen of life.
Without oxygen, life on this planet will not be possible.
Therefore, without money life will be very difficult or impossible.
Why?
Money is not everything, but everything needs money.
We need money for
1. buying goods
2. storage value
3. societal status
4. credit
5. annuity or compounding.
If you can compound all the profit of your principal, you will be rich as compounding is the 8th wonders of the world.
Like the saying says "borrowers are always indebted to lenders".
Therefore, the way to be rich is neither a borrower or a lender.
Why?
In a rainy day, if you are a lender, you are in deep trouble, needing to return more, even if you are in debt.
In a rainy day, if you are a borrower, you are unable to get back your money borrowed and might have to accept a haircut.
If you are a saver, you must make sure that money that you store will always have storage value.
What is a good storage value?
Good storage value is something that will not depreciate with time.
The only things that do not depreciate with time are only silver and gold.
Therefore, the best asset to keep for a rainy day is silver and gold.
The second best asset is foreign currency, which is backed by silver and gold or highly acceptable and convertible.
Why?
In a time of crisis, money or foreign currency will become hard assets.
The worst foe during a rainy day is the bank, the bank will remove your umbrella during the rainy day by calling back loan when you are having cash crisis.
Be prepared for the rainy day.
God bless you,
Dr Lion.
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