Free Your Money: Why Stagnant Dollars Hold You Back

In my last article, I shared why avoiding trapped money—equity locked in your home or cash sitting in a bank account with no return—is essential for wealth creation. This time, let's go a step further and unpack why freeing up your money and putting it to work in appreciating or cash-flowing assets isn't just a good idea—it's the only way to stay ahead.

There's an old adage: you are either moving ahead or falling behind, there is no neutral. When it comes to money, that couldn't be more true.

How Money Printing Dilutes Wealth

The Federal Reserve's monetary experiments over the last 15 years have pumped trillions of dollars into the economy. At first glance, this may sound like stimulus that helps everyone. But look closer.

Think about owning stock in a company. If the company keeps issuing more and more shares, your percentage of ownership shrinks. Each share you hold is worth less. That's exactly what happens with money printing. The more dollars that flood the system, the less purchasing power each dollar has.

The result? Your savings in the bank don't stretch as far. Groceries cost more, housing costs more, and basic living expenses rise faster than your interest earnings.

Where All That Money Goes

Here's the other side of the coin. While your purchasing power is diluted, the excess money in the system tends to inflate asset prices. Stocks climb, real estate values increase, and businesses gain access to capital.

This is why people who already own appreciating assets—like investment properties, shares of growing companies, or equity in successful businesses—see their wealth rise dramatically. Meanwhile, those who keep most of their money in bank accounts or idle home equity fall behind, even if they think they're being "safe."

Breaking the Wealth Creation Block

So how do you fix this? The answer is simple: stop letting your dollars sit still.

Deploy your stagnant funds into appreciating or cash-flowing assets. That might mean:

• Buying real estate that generates rental income and appreciates over time.

• Investing in stocks or funds that benefit from long-term growth.

• Building or funding businesses that create recurring cash flow.

When you put your money into productive use, you're not just keeping pace—you're pulling yourself up the wealth ladder.

Why the Middle Class Splits

The failure to unlock trapped money is one of the biggest reasons for the widening wealth gap. Those who deploy their capital move into the upper middle class and beyond. Those who let it stagnate often slip toward the lower middle.

It's not just about income. It's about what you do with the money you already have. Too many people are told that it's "not fair" when others get ahead. But in reality, the difference is strategy. Wealthier households step onto the escalator of asset ownership, while others remain on the ground floor, wondering why they aren't moving.

A New Mindset for Wealth

No one is going to tell you this directly, because the system benefits when you keep your money trapped. The scarcity mindset—"hold on tight, don't risk it"—keeps people exactly where they are.

But if you want to change your trajectory, you have to flip the script. Keep only what you need in the bank for everyday expenses and emergencies. Then put the rest to work. Let your dollars multiply through appreciating assets instead of collecting dust in accounts that pay next to nothing.

The Bottom Line

Wealth is not built by accident. It's built by motion. Every dollar you keep stagnant is a dollar falling behind. Every dollar you put into appreciating assets is a dollar climbing the wealth ladder with you.

So do yourself a favor: step onto the up escalator of long-term wealth. Free your trapped money, deploy it wisely, and watch how your personal balance sheet transforms over time.

Understanding the relationship between money printing, asset prices, and purchasing power is crucial for wealth building. The widening wealth gap isn't primarily about income—it's about capital deployment strategy.