Part 7/12:
They emphasize that most wealthy individuals do not work merely to earn a paycheck; they work to own the businesses, properties, and investments that generate passive or residual income. Relying only on a salary makes one vulnerable to losing income due to economic downturns or job loss.
The Role of Banks and Inflation in Keeping People Poor
The discussion shifts to the financial system's structure, revealing that banks benefit from keeping individuals uneducated about personal finance. While deposits are liabilities for banks, they lend out this money at higher interest rates, profiting from consumer debt and inflation. Keeping cash in savings accounts results in actual wealth erosion, as inflation outpaces the paltry interest payments.