There are three kinds of currency in the world, paper currency, space and time. As you know me, I am big advocator of time value. I perceive paper currency is cheapest money, then space and the most valuable asset is time. Majority never get to understand this concept.
Easy example like this:
Your paper currency, such as USD, TWD, AUD will be depreciated as times goes by for sure. How come? Answer: government need to reach the inflation and devalue their currency in order to stimulate their economy. Your domestic purchase power will be decreased as inflation goes. You cannot avoid it. That is why your paper currency is doom to depreciate.
So what about space? The easiest example of this will be property. Property is second best asset to protect your wealth from inflation. As government try to print the money as much as they can, property price tend to go up in line with “free money” if your fundamental economy is solid. For any property buyer, they all know one simple gold rule in property world, location, location, location. The better location and the more space you want, it costs you more. Government can print the money unlimited but they cannot create the space (land) unlimited.
Time value. It is number one financial disaster when you have compound interest against you. It will trap you in the financial hardships forever until you are totally broke. Best example of this is bad debt from credit card. Every single day, time is against you and makes your financial life more and more difficult. People understand this concept when they carry credit card debt, personal debt, car loan and all sorts of bad debts.
Which currency is most important to you?
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