Cash is not King, there is a king and it is not cash, cash is garbage okay cash flow now would be a different conversation, constant cash flow.

Look cash is going down in value. I want to give you something I did a little study this morning, in 1960 okay this is a conversation everybody here if you want to know more about money you have to figure this out okay?

In 1960 if I had one thousand dollars and then I come out to 2018. How much money? How many thousands of dollars do you think I would need in 1960 to buy the same services today as in 1960? I was born in 1958 by the way, eight thousand ($8,000) what was the number? I had the number pulled up for you guys, it’s on my desk guys, if y’all can pull it up it’s on my desk on a piece of paper. I was getting ready for this show.

In 1992 this thousand dollars and you take it out to 2018 you would need seventeen hundred and forty-four dollars to buy the same goods and services okay this was 82.69 so now this is really important don’t get lost here, You’re like what just happened here okay I’m going to show you I’m going to give you a very simple very very simple and I’m going to explain to you what Warren Buffett says only a handful of people on planet Earth understand it’s called inflation there are a thousand dollars and I’m just going to pull off what looks like eight yeah that’s eight I gotta add one it’s short 100 okay I Wonder how close I am maybe somebody can count this out okay okay

Now in 1960 when I was two years old this is what it took you could go with a thousand dollars and you’d buy whatever washing machine dryer car payments house payments blah blah blah if you wanted to buy those items today those same items today this is the understanding of inflation you would need eight times the money to purchase the same products okay so what happened?
okay, ask yourself this question – a thousand dollars in 1960 is worth what today? if I had a thousand dollars put it in my drawer in 1960 came back 57 years later 58 years later and grabbed it how much money would be in the drawer same thousand dollars is in there nothing happened to the thousand dollars you understand we still have a thousand dollars this is inflation simplified this is what they don’t teach at school

Right a thousand dollars in two in nineteen fifty and eight is 1960 it is a thousand dollars in 2018. the difference is the difference however this bought this product right here okay and by 2018 it didn’t buy the same product it bought one-eighth of the products okay now what does that mean to you that means cash

[Music] Right because what happened to these products that went up in price these products went up eight times while money went down or the pr that went up and this stayed the same however you want to figure it out but cash is not King folks okay cash is not King, in fact, you’d have probably been better off buying a thousand dollars worth of real estate back in 1960. and getting rid of your dough

Because what do you think that piece of property would be worth today if it was in a decent location my name is Grant Cardone you’re in the Cardone Zone we challenge the way you think about the economy your career and your finances and if you don’t have any finances you stay close to me on Fridays and I promise you I will get your money right okay don’t go anyplace [Music]

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