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Many believe the system works against them and that only the rich get richer.
He demonstrates that its entirely possibleto use Americas economic system to your benefit.
The American economic system separates into three roles: consumers, investors and entrepreneurs.
Many Americans fall into multiple roles, but everyone is a consumer.
Consumers are people who pay forgoods and servicesthat they use.
Because everyone needs to buy food, clothes and housing, everyone is a consumer.
Investors put money into businesses or property, expecting to make more money from doing so.
Finally, entrepreneurs are individuals who create new businesses.
Inflation is one of themost significant factorsaffecting the relationship between these three roles.
Inflation is the rate that the prices for goods and services rise over time.
This prices that item at $11.20 at the end of 2023.
The Winners and the Losers
In the American economic system, most people are only consumers.
When consumers pay more for products and services, businesses receive more money, benefiting entrepreneurs.
As businesses gain more profits, they can expand and grow.
This in turn helps the investors, who profit from the success of a business.
Because of this, Singh explains that you cannot just remain a consumer to build wealth in America.
You must become an investor to benefit from how the system works.
For this, he urges you to take 10 years to build up your investments.
While it can be a challenge, it can really pay off over time.
By staying consistent with your weekly or monthly contributions to your investments, your wealth will compound over time.
Compounding interest works the same way compounding inflation does.
If your investment gains an additional 8% interest the next year, youll end up with $1,166.40.
Combining compound interest with regular payments for a decade can produce excellent results.
In Singhs case, he invests for cash flow.
With enough money invested, youll have a monthly income you wont need to work for.
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