See, I used to think that cash is king, but now I think it’s the enemy. Most of us put cash right here in our bank account where we think it’s safe. It will never disappear. But let’s look at the last 100 years. The average inflation was 3.1%. What does this mean? This means that every year our money disappears by 3.1%. This is called inflation the first. Some background. My friend Yoni and I are on a six month challenge to study money, how it works, how it shrinks and how it grows. Hi there. Yoni is the founder of etoro, the largest social trading platform in the world and he’s teaching me about investing. If you want to join us, just click on this link, NAS dot Io slash money. Everything we’re reading is available to you for free. Now back to the challenge. Yes, inflation. Let’s understand inflation. If every year is only 3.1%, in 24 years alone, your money will go down like this and you will have 50% less buying power. Your money is worth half as much, which means everything else is double as expensive. So your cash sitting in the bank today can buy you a car, but in 24 years it may only buy you a bicycle. And you’ve done nothing wrong. You just saved your money in the bank. The importance of learning how to manage money is, if you think about it, we spend so much of our time Getting a job, making money, we need to spend some of that time actually managing money in order to build wealth over time. I agree. I see so many of NAS company members keep their salaries in cash in the bank and that’s painful. Like Lorena who now has tens of thousands of dollars sitting in cash. You don’t have to be sad. There’s a solution to inflation. You have to learn about how to invest and invest your money. That’s it. That’s it. Okay. Okay. Okay. I know it sounds scary. Compound interest investing stock market. But let’s look at the data. The data does not lie. Since 1957, and this is a true story, if you take the US stock market or the SNP five hundred, which is basically a representation of the biggest companies in America, the s and P 500 got a yearly profit of 10% on average. What does this mean? This means despite the Vietnam War, despite the dot com bubble, despite the 2,008 financial crisis, despite the Covid 19 pandemic, the US stock market went up on average 10% every year. This tiny 10% difference can make a huge difference in your money in investing. This is called compound interest. Cash sitting in the bank goes down like this. Cash that’s invested goes up like this. It’s exponential. Even Albert Einstein agrees. He says compound interest is the 8th wonder of the world. He who understands it earns it and he who doesn’t. Pays it guys I do not give financial advice I’m not gonna say invest in this stock or that stock what I’m gonna say is if your money is sitting in cash like many people in my company then you may be doing a mistake alright hold on since I shot that video my hair grew but also I looked into our cash as NAS company and I discovered a massive problem so we have access to $30 million as a company and I discovered that 10 million of these dollars are sitting there in cash and that’s a big problem because it means we’re losing $300,000 a year just from inflation so what I did we we kept enough cash for three months of operations as a company and the remaining in the 10 million we just invested all of it in very low risk interest bearing stuff this one day exercise with my team has saved me hundreds of thousands of dollars that’s crazy I spent one month studying money and I’m telling you investing is not scary you can invest in stocks in assets in real estate in crypto anything you want the most important thing is don’t leave your money in cash because it disappears 3.1% every goddamn year any day is a great day to invest no one can time the market and no one knows when it goes up or down but there is one thing I know investing belongs to the future and cash belongs to The past. As you can tell, I really hate cash. See you next month for another video about money.