Money Is Changing Forever (Say Goodbye To Old Money Rules)

Our economy will never be the same. And most people are playing the game of money in today's economy with old rules and then wondering why they're seeing no progress and no wealth. I'll show you. Let's go back in time a little bit. If we go back to the 1970s, back then we had one income households. Generally, the way it worked was the man went to work and the woman in the house did not work. That's just how it was. And back then, with that one income household, one income was able to fund buying a home. One income was able to fund buying a car, maybe even two cars. One income was able to fund an annual vacation. And one income was able to fund college. And people were still able to save money and book money aside for their retirement and investments. Today, we have two income households and people are struggling to buy homes. People are struggling to buy cars. People are struggling to go on a vacation. People are struggling to pay for college. And people are struggling to put money aside for their savings. And people are struggling to put money aside for their investments. Let me show you some statistics. In 1972, the median household income was $11,120. This is from the United States Department of Commerce. Now, if we fast forward about five decades later, in 2021, the median household income in the United States was $71,000. This is from the United States Census. That is a 640% increase in household income from 1972 to almost five decades later. But don't forget, back in the early 1970s, the household income was primarily just one person's income. Today, our household income numbers are based off of two people's incomes. In 1972, the median home price sold was $30,500. In 2021, it was $346,000. That is an 1,100% increase in home prices. The average new car cost $3,700 in 1972. In 2021, the average new car cost was $47,000. That's a 1,500% increase. Four-year public university tuition went from $500 in 1972 to $9,500 in 2021. That's a 1,900% increase. Now, look at these numbers very carefully. Household income grew by 640% partially because now there are two income earners and one home. At the same time, home prices grew by 1,100%. Car prices grew by 1,500%, and tuition prices grew by 1,900%. This is the new economy, and people wonder now why they're struggling to get ahead. The reason why so many people are struggling to get ahead in today's economy is because the cost of living has grown significantly faster than wages. Now, this is where you have to make a decision, because the decision here is very tough and very crucial at the same time, because most people look at this and they say, this is why we need to complain, cry, scream, be upset. And that's what most people do when they see these numbers. Now, yeah, it is very frustrating when you see this. Don't get me wrong. It is frustrating to see this. But you can still win despite this if you have the right financial education. Now, the reason why this is all happening goes back to the same concept that I've been talking about time and time again. It goes back to inflation. What happened in the early 1970s? In the early 1970s, the United States dollar was taken off of the gold standard. This happened in 1971 when President Richard Nixon severed the dollar's tie with physical gold. Prior to 1971, if the government wanted to spend money it didn't have, it needed more wealth. It needed more gold. But then in 1971, President Nixon took the dollar off of the gold standard, meaning the government and the Federal Reserve Bank could print and spend whatever amount of money they wanted to. So now the Fed can print more money, insert it into our economy, and this then devalued our spending ability. Our consumers got hurt. Our ability to spend gets hurt. Our savings have less buying power. Our wages, our income cannot buy as much. And in turn, the price of things go up. That's what inflation does because after 1971, we started to see way more spending, we started to see more inflation, and that impacts people who are not financially educated. So now, if you're a regular person and you're just trying to get by, you're trying to do all the right things, you go to school, you get a good degree, you get a good job, but now you're working to earn more money, and you're wondering why you don't have the same ability to build wealth like your parents or your grandparents, well, you can thank the Federal Reserve Bank and all the money printing that they did. But now, this is where, again, you can complain, cry, scream, blame the system, blame the government, blame the Fed, blame your boss, blame the bank, blame everybody, but that's not going to improve your financial situation. And so what I'm saying is now, despite all this happening, how can you win in this financial situation? Because the reality is the economy is not going back to where it was. And this is where a lot of people are trying to figure out what's going to happen now going forward. Because now, if in 1970, a one-income household was enough to provide for a whole family, now in 2023, two-income households are what you need in order to provide for a family and barely get by. What does that mean we're going to see in 2030, 2040, 2050, 2070? Now, if you think that 20 years from now, it's going to be like what it was in 1970, where one income is going to be enough. And now with two incomes, you're going to be able to build even more wealth. You're living in la-la land. And this is where I want to bring you back to reality a little bit. Because if inflation is what created this big divide between the haves and the have-nots, if inflation is what created the cost of living to rise so significantly, well, you got to understand, is inflation going away? Meaning, are we going to see negative inflation over the next number of decades to bring the prices of things down? That way, now you have more ability to build wealth. That is not happening. If you enjoyed this short clip from my longer videos, here's another clip that I think you'll love, and while you're at it, if you're interested in learning more about how to start generating passive income, our team put together an amazing guide on how to start generating passive income for free. All you got to do is click that button right over there. Thank you for watching, and as always, keep hustling!