(Dinar Recaps Note: This post is for informational purposes only. It is not legal, tax or investment advice. Dinar Recaps advises that everyone should do their own due diligence and seek local Professional tax, legal and/or investment advisers.)
THE IMPORTANT DIFFERENCES BETWEEN WEALTH, RICHES, AND MONEY
Wealth is generally anything that is naturally part of the four-dimensional world. Anything that exists in the natural is wealth, and often involves multiplication. The created earth functions and supports this multiplication principle. You put in a seed in the earth and you get back much fruit or herbs with many seeds in them in your harvest.
Thus, everything that exists in the natural is defined as wealth, and it will have the inherent quality of producing wealth by multiplication.
Also, wealth is not retrieved by a passive, but rather active participation through work and good management skills. Wealth assets are land, houses, family (wealth handed down through inheritance) businesses, gold, silver, diamonds, oil, coal, lumber, fruit trees, vegetable farms, cattle, sheep, fisheries, and free energy production from the natural world, such as solar, wind, or the magnetic field around the earth.
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As we Dinarians have learned, the IMF is causing countries governments to issue asset-backed currencies. this is what is happening in Iraq, United States, Vietnam, etc. One of the Founding Fathers of the United States knew that in order that government spending could be "limited" and controlled, it required gold or silver reserves to back the U.S. Dollar before it could be printed.
Alexander Hamilton caused wealth, that had a limited supply (silver and gold) to back up our Dollar; and this restriction was written into our Constitution. At one time, one could exchange the dollar for equivalent of silver or gold.
However, when the U.S. government allowed a private company called the Federal Reserve to start printing its money, and then later went off the gold standard, the country went into debilitating debt. The Constitutional restriction of disallowing the printing of money unless it was backed by gold or silver was a built in check and balance against unbridled spending by the government by not authorizing money to be printed without the backing of a limited commodity that constituted a wealth asset.
In other words, the money printed in the U.S. today by the Federal Reserve, as we all know, is no longer attached to a limited supply of wealth. Once again, the United States Treasury is starting to cause the printing of the U.S. Currency to be backed by gold or silver. We have no choice if we are going to save and energize our country's economies. This is one of the primary reasons the government has allowed middle class citizens to invest in currencies, such as the Dinar and the Dong before they are re-valued.
The world is changing. In the event the U.S. loses its military prestige in the world, and no longer prints the Lead Currency in the Western World markets, then the U.S. paper currency without wealth backing it will decrease in value and fall like a house of cards, as the backless paper currency has done in other countries, such as Russia.
U.S. citizens may believe that this can never happen, but the stage to equalize the world powers economically is already set in place. This is already in the plans. The Chinese Yuang is now the currency to pay for shipments of oil. The Pacific Rim countries can manufacture products cheaper than the United States' factories, and their "Gross Domestic Product" is catching up quickly to the that of the United States.
In order to bring back our economy in America, Dinarians have to go after wealth assets, multi-generational thinking instead of single generation consumption, research and development, investing money to capture a market share for products or services, setting aside savings for future growth and replacement of dilapidated machines, and treating small business owners with encouraging tax breaks for risking capital instead of taxing their net profit with the same tax rate as executive employees on guaranteed salaries who have not risked capital.
It is well understood that someone who is the owner of a business works harder than an employee of that business. It is also truth that someone who owns a house takes better care of the house than a renter. Houses and businesses are in the wealth category.
Why is our country in an economic mess? Partly because people are looking for "Mother Government" to be their financial caretaker. Also, there has developed a mentality where businesses and investors look for short term profits, refuse to invest in research and development (which is investment in our future generations), little savings (so have little capital when it is needed, and have to go into debt), and single generation consumption as its business plans instead of fulfilling our responsibility to our posterity.
This is not wealth producing, but financial devastation, and eventual ruin of our great nation.
Likewise, small businesses are wealth producing if conducted with sound, economic principles. If you had only $1,000 in your small business account on January 1, by the end of the year, you probably run $100,000 through your business bank account. That amounts to a multiplication of one hundred fold return in a single year.
Again, businesses are part of wealth, and they are designed to combine capital with labor to bring "maturity" to its owners and employees. Years of experience from the daily problem-solving activity of running a business will cause profit to be generated and future good will for further business customers or clients..
Every small business person who had their children work in the family business gave a means by which a child matured. Thus, Dinarians should champion small family businesses. There was a who went to visit his neighbor. When he arrived at his neighbor's farm, he saw his neighbor near a two-acre field watching his sons weeding and loosening the soil around the plants.
The visiting farmer asked his neighbor, "What you growing, corn?" His neighbor gave a thoughtful look and looked back at the field, and responded, "I am growing sons!" His sons were learning to prepare the soil, plant the seed, cultivate, weed, and finally reap the harvest as a reward.
This was a demonstrative learning lesson for his sons that they would never forget in life. It established them with a good work ethic, and it showed them that there was a reward in the end.
Don't be afraid to allow your children to start at the bottom of a family business you start and allow him to learn everything about the business. By the time he or she takes over the presidency, he or she will be mature and experienced to run the business profitably and have the requisite people skills to be a good employer.
If you own cattle, sheep, or any other live stock, there is always "multiplication" involved. A cow will have a calf every nine months, and then you have two cows. That means you got one hundred percent on your investment that nine month period, which is a one fold return, but still multiplication.
Every asset of wealth requires stewardship and work to make them have value. Gold, silver, diamonds, emeralds, rubies, etc are precious metals, and hard mining is required to extract them from the earth. Cows have to be fed and cared for in order for the dairyman to get milk and the birth of another cow each year.
Crops have to be planted, cultivated, watered, and harvested to get the reward of multiplication. Having the blessing of a family requires hard work, diligent, faithful labor to raise good children.
Also, houses are considered part of a persons wealth, not riches, which will discussed below. A house is where people live, and people have children and the multiplication occurs in the house and home. Wealth is what is handed down generationally as an inheritance from the family.
An inheritance is when you receive something without having to work for it, but are required to work to maintain it after you receive it. Therefore, if you have a loving mother and father, you are wealthy. A brother or sister is also part of your wealth. They will always be there for you. They will work with you and help you when you are down and out.
Wealth acquisition, wealth preference, wealth preservation, wealth management, and wealth distribution have to be taught, but more often than not, they have to be caught instead of taught. It is like driving a car. At first, you had to pay attention; and you were nervous and awkward, but eventually, it almost became automatic. Your attention to gravitate to wealth will become top priority in your thinking, and will become the foundation of your every decision.
RICHES: Riches are generally passive in nature, and usually have a principal guarantee and a fixed interest or dividend rate. Thus, you cannot work harder with riches and make more money. When money starts working for you instead of you working for money, then you receive riches. Money working for you as riches can be in the form of guaranteed investment contracts, stocks, mutual funds, annuities, bonds, commodities, secured notes, and other "passive" investments.
Riches are not wealth, so when the bankers refer you to the "wealth management" section, they really are referring you to the "riches management" section. Money and riches only become wealth when you use them to purchase things that constitute wealth assets, such as land, houses, gold and silver, precious stones, businesses, livestock and things that multiply in value.
The things of wealth will automatically start multiplying in your life, but riches do not multiply. Normally, with riches you get a percentage of 100% return each year. Banks want to give you 1% per annum. Insurance companies will pay you about 3% guaranteed but allow sums higher when the return on the annuity is connected to an index.
If an asset is deemed "riches" instead of wealth, then it usually guarantees "money" as a return. However, what happens when money is inflated to the point of no or little value. A 12% per annum return means nothing if you have 60% inflation per annum. If the U.S. Dollar is going to go down in value, then what good does it do to receive the U.S. Dollar as your "harvest." A fixed returned that is not automatically adjusted for inflation is not a good investment.
Riches can be deceitful because you trust in them. You become like a grasshopper and play and suddenly find your investments into riches lose their values. How much money has been lost in Mutual Funds and Stock Market, for example. Riches are deceitful, stop you working, stop you managing your own investments, and are given to people who do not have an "ownership" mentality over your investment.
Lands, houses, silver, gold, precious stones, and businesses, do require hard work and good management, but they also maintain value and a protection against total loss. Thus, wealth assets are a better investment than rich assets. One can have some assets labeled "riches" but the bulk needs to be in wealth assets.
To be safe, one should not seek to be rich, but to be wealthy. If your desire to be "rich" is so you can "party hardy," and live a life of ease, you will probably lose your estate through those whom you trust to be your investment advisers managers.
MONEY: Money is the "medium of exchange" of a given culture and society used in trade to avoid the inconveniences of a pure barter system.. Money is the way the World System attributes value to services or products because it easily fits in the world's commerce of buying and selling.
Money has certain attributes that promote its use as a medium of exchange. Title to money is easily transferable. Money can be divided into denominations. Money is durable. Money is transportable. Money is easy to recognize. There is generally more demand for money than money availability.
The problem is that some people fall in love with money, and money consumes their lives. While riches are deceitful, people tend to fall in love with money. People fall in love with money because money has almost a mystical nature attached to it, and people who "lack" in self worth believe money can make them important. People put unhealthy demands on money to make them feel important, to give them power, to make them feel secure, to make them believe they are independent, or to make them feel attractive. These are emotions attached to money.
Since most people in business and commerce are attracted to money, they spend most of their time trying to get possession of it. Why? It is because money has an insidious nature about it. Two twenty dollar bills can make a table in a completely filled restaurant suddenly appear. Two one hundred dollar bills can cause two tickets to appear at an otherwise sold out baseball game.
The power of money has been used to finance wars, create empires, send a man to the moon, pollute the earth and finance agendas of the world's largest businesses. Many wars are fought over money matters. The American Revolution was sparked over higher taxes. Labor Unions were created to start a movement to fight for higher wages and employee working conditions. Organized Crime exists because people are willing to commit illegal activity for money. If you are a Christian, you can read how Jesus was betrayed for thirty pieces of silver, a sum less than $50.00.
In the world, people use sayings such as, "money talks," "money opens lots of doors," and "money makes the ugly beautiful."
Thus, what is the lesson to learn as you ponder the thoughts of what is the best thing to do when you exchange your Dinar for U.S. Dollars, probably this coming week? Wisdom must dictate to preserve your family estate multi-generationally.
Your rule of guidance should be to start moving your currency into wealth, with a small amount into riches. The "wealth managers" at the banks will try to get you to move your United States currency, once exchange for your Dinar, into assets that are defined above as "riches."
However, that is not the best for you if you have the responsibility as the father and mother to start a "family dynasty."
The wealthy families who are called the "blue blood" in America started out with the above ideas, and they created wealth, often through ruthless capitalism, which I do not believe in, but most recognized the virtues of free enterprise. They thought mult-generationally in their businesses and investments and not single generation consumption. They started family dynasties during the Great Industrialist era and still exist today. Their wealth has continued to increase over the last one hundred fifty years or so.
As a Dinarian, your goal should be to make the money work for you by investing in wealth assets, with some riches for passive cash flow. You must make the money work for you instead of you working for money. Again, change the nature of money into wealth, and it will work for you. Do not keep your asset in "money" form.
For example, everyone should purchase some "silver coins" and "gold coins", which are wealth assets, so you have a medium of exchange that will grow in value with inflation and which is available to buy consumer goods if necessary in the event the dollar seriously declines in value.
Also, everyone should own rental real property, which is a wealth asset. Everyone needs a place to live. If money loses its value, houses will automatically go up and maintain its utility to be income producing through rents.
Never, never, never buy a "wealth asset" where there is a lien or mortgage attached to it. You must keep your wealth assets protected from a lien sale. There are ways to make the "equity" disappear in a friendly way, so people won't realize that you are wealthy.
Also, never own wealth assets in your personal name, but in the name of a corporation or LLC. Never have more than 4-5 pieces of real property in each corporation. Keep your name off of the corporation, but have a paid nominee as President, Secretary, and Treasurer. Have your family revocable trust be granted an option to buy the stock or membership of the entity any time.
Even the house you live in and "rent" should be owned by a Corporation, following the same rules. Pay rent for the house you live in, with a signed lease, and pay the rent each month to the corporation who owns the real property. If your children live in a house, have them pay rent, with a signed lease, back to the corporation. The corporation claims the rental income and takes the depreciation allowance to off-set the rental income. [There is a lot more to say on this subject, but this is enough for now].
These strategies need to be discussed with your own attorney, business consultant, financial planner, and CPA, as I do not want to say any more here in this public forum.
Don't be like those who win the lottery and in five years or less it is all gone. Try not to spend your principal base, but live modesty without increasing your standard of living with the principal you receive from the sale of your Dinar, and then increase your standard of living only has income is derived from your wealth asset based investments, such as rental property.
Take out enough to live modestly for a year and invest the rest in wealth assets, and then stay involved with the wealth assets to produce a harvest. The bottom line is: Move your currency into wealth asset, as wealth assets will survive the economic storms that may be coming.
Stay out of debt; never buy a wealth asset using a loan for its purchase. Stay away from refinancing to purchase more assets. Never, never, never use your paid-off house, with title being held by a corporation, as "collateral" for a business, line of credit, or other security.
P.S. Each of these infomation blogs are educational, and they cannot be instituted alone, but must be combined and used in conjunction with the other asset protection, estate planning, communication privacy, and future security teachings