Kale Abrahamson’s investing guide starts with one thing: debt! Why? Because nobody can talk about investing without talking about debt. Moreover, currently, the US national debt is around 29 trillion dollars. More than that, it owes over 100 trillion to its people. That means that every citizen would have to pay almost half a million dollars each to fund programs like Medicare, pensions, and social security!
Understanding Debt
Debt is a sinking ship and it won’t be paid back any time soon. It isn’t just unlikely, it’s impossible because the US doesn’t tax enough to even get close to paying the debt back — it doesn’t even cover the interest half the time.
Although the national debt doesn’t have a direct effect on the consumer, the way it’s handled does. How can a government handle trillions in debt? There are three options:
1. It can tax people more, which is likely to happen but not to the degree that would make a dent in the debt.
2. Tighten the belt, which is unlikely to happen because no politician would ever say spend less, appear conservative, and crash the economy. Paying the debt isn’t worth triggering a depression over.
3. Default on the debt, which no president will ever do.
Since these three solutions won’t cut it, the government taps into a fourth option: print more money. Their only way to shrink the debt is to put new cash into circulation. It devalues the debt, stimulates the economy, but also has the nasty side effect of making your cash worth much less.
In a way, the government punishes those who save. Imagine keeping all your money in a single account at a bank without earning any interest on it. The more the government prints money, the less value your account has year after year. It’s like losing the money you’re putting away.
That’s why it’s better to spend the cash now rather than lose it through depreciation later on. There are nuances to this but this information is being shared to inspire action. Instead of just saving and hoping, follow Kale Abrahamson’s tips for investing to retain the maximum value of your money.
1. Spend It On A Business
If your money gets devalued every day, the best way to fight the losing tide is to make more of that money yourself. A profitable business is a great way to weather the fluctuating tides of currency inflation and deflation.
It might even make more sense to take out a loan to start your business. If there’s more money being printed, that means the loan is getting devalued, which makes it easier to pay off. This means you have a higher return on starting a successful enterprise.
2. Invest In Things That Can’t Be Printed
This is one of the most important investment tips from Kale Abrahamson. When more money gets printed, what rises in value are assets that have scarcity. That includes rare art, real estate, stocks, gold, and Bitcoin — their value has skyrocketed.
Think of Monopoly: if the banker hands everyone 10k, then the properties would all go into a crazy bidding war. That’s what happens when the government prints money to stimulate the economy, those who have properties profit the most and gain the most wealth.
3. Whatever You Do, Don’t Save
This doesn’t mean don’t save any money, it just means don’t store your money in cash. You can still be reasonable and have some lying around for emergencies, but if you can, do it with assets. These usually appreciate value rather than whenever the government decides to print more paper.
Kale Abrahamson has made millions of dollars in the past few years and holds less cash than someone making minimum wage. Yet, if the government decided to print out a few trillion to put into circulation, his assets would jump in value, not drop. His favorite investments are his own companies and Bitcoin because these have built-in scarcity that protects from the financial whims of politicians.
We hope you found Kale Abrahamson’s investing guide to be helpful. To get more tips on how to invest, subscribe and read the Kale letter to stay ahead in business!
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