I opened my Barclays saving account this morning and wow. The rate went up to 1.65% I know this is nothing to brag about but Hey, it’s better than 0.0005%. What does the rate increase mean for you and your business?
I won’t go too much into detail here. If you want to go into the detail, I would suggest following Peter Schiff at the Peter Schiff show. he does comment on the market weekly. He met him at the Real Estate Radio Guys submit at sea in 2017.
First off, it will help saver, If you have a million sitting in the bank account right now, that’s $16,500 a year, that’s half of a teacher salary in Texas. Cut that in 10. If you have $100,000 sitting in the bank right now, which most people do, that’s 137.5$ A month. That’s a membership to go to a luxury gym where I live.
Second off, When the interest rate goes up, price come down (supposed to). I personally don’t see it in Houston yet since we have such a strong base of investors and buyer. Anything under $200,000 in Houston got moved pretty quickly on the market.
Third Off, which I most concern about is the value of the dollar. Interest rate going up means bank wants your money. does it mean that we will eventually move into a cashless society? Are the US government going to come up with their own version of bitcoin and going to convert your dollar into some kind of cryptocurrency?
I think that 2nd to real estate, gold is the perfect vehicle to hold your wealth. You work hard for your money. I think it’s pretty dumb to hold all of it in a form of fiat currency. I always searching for a better way to hold and transfer wealth out of Wallstreet and out of fiat currency into real assets such as real estate, gold, and silver, maybe bitcoin?
What are you and your family doing to protect your wealth?
No offense, but If you don’t have any, then stop reading about this topic go out and make some instead. Most people worry about the wrong thing. I guess one thing you could protect yourself from the next financial crisis is to be broke and have nothing to lose.
In the pictures: Our up and coming tiny house project. More detail on this soon