How crypto helped turn a 22K debt into 25K profit - Part 2
I ended part one yesterday really at the bottom of my wealth, with being in dept over 22K in euros.
If you want to know how I got there please check out Part 1 of my story:
How crypto helped turn a 22K debt into 25K profit
Now, where were we? Right, it was 2019 and these were my stats.
When you hit rock bottom the only way is up. right?
Now for a bit of good news, I got lucky.
June 2020 arrived, the deadline for the tax assessment passed and I got...... nothing. This gave me an extra year to save money for the last one, which would expire by June 2021.
So by June 2020, things were finally starting to turn around. Or so it seemed.
The Times They Are a-Changin'
Over the last 2 years, my girlfriend and I lived on a very tight budget, with no room for anything but the direct necessities. During that time we did much to improve our financials.
1. Renting out my parking spot
I was renting an apartment with an underground parking place, but as we did not have a car we were not using it. Now officially you are not allowed to sublet something you are renting. But if nobody is looking, why not.
2. Keeping score
Secondly, we started keeping track of all money coming in and going out. And if I say we, I mean my girlfriend. I made sure the money was coming in and she made sure to document every penny going out.
3. Why don´t you get a (better paying) job
The biggest game-changer was my promotion, it was already discussed in early 2020 but didn´t go into effect till that summer of 2020.
Hence in all honesty I was already on my road to financial recovery prior to getting into crypto.
But getting into crypto could only be done due to my healthy financial status. Because you should never invest what you cant afford to lose and until 2020 (as you can see) I could not afford to lose a penny.
The Gift
That same year I received a huge birthday/Christmas. As I was already saving up to pay the 3rd and last tax assessment, I could use my gift for my first ever (crypto) investment.
So I bought...... Bitcoin! And put a $250 on an exchange to see if I could trade my way up.
Now as mentioned I am thankful to the guy that pushed me into crypto at the right time, or maybe just a little too late (but that was my fault as i had no funds).
My initial $1000 BTC did very nice in 2021 and thanks to the bull run I had tripled my 250 dollars by the time we hit the bottom in the summer of 2021. During these low months, my portfolio was still worth about 2200 euros.
On top of that, I seem to have slipped through the cracks again with regard to paying the overdue taxes. Which put my savings at 4500 euros. That was quite a jump forward reducing my debt by 14K in 2 years' time.
But 2021 did not end yet
We had a 2nd bull run in October/November of 2021 and I was involved in several projects of which one did amazing. I was able to take out all my investments and still have a 12K portfolio by Christmas.
Now over time, that portfolio dropped a bit thanks to this lovely bear market but as it´s May and I am still holding over 9K in crypto I think it´s okay to put that number down for June.
As I was used to saving 4500 for the taxes I did so again this year. But I managed to save much more. I took out 1250 euros from my crypto investments and another 1250 euros from the profit in December 2021. Which totals 11.500 in savings.
Due to my new job and increased salary I was able to save another 700 euros each month by sticking to the old budget and that money I could use to buy more assets. No crypto this time but bricks.
Instead of throwing away money paying rent, I was able to buy an apartment and pay to become the owner of my first bit of real estate.
Now 2022 was not all happy-happy joy-joy as after 12 years of silence I was contacted by the student loan instance?????
Twelve years of nothing and it was as if they could smell the money. All of a sudden they knew where to find me. Well, we made a deal and I started paying them already so my Student Loan did not increase.
I did save enough to pay off my bank loan and my financial position by June 2022 must look something like this:
So where did that Crypro help you?
I knew you were going to ask that. And the answer is simple.
First of all crypto made me money, but that is the least important part.
Reading and writing about crypto taught me a lot about finances. Something I did not care for all those years I was flat broke.
It taught me that I should look at my finances as a game, just like I play the crypto game. Where can I make profits.... which led to paying off my bank loan 3 years before the deadline.
How can I increase my holdings, which led to me buying an apartment and basically staking a bit of money into a project each month. While no longer throwing away money each month for the same roof above my head.
It taught me that I should not pay off my Student Loan as the interest is only 2 % a year. But rather invest that money in Bitcoin as the expected return on that investment will be much greater than 2%.
But it also made me realize to keep picking up pennies from the street, just like I do in the crypto-verse (earning through Brave, PreSearch, Cake Defi, NoiseCash, Torum, HIVE) because those little bits at a time will be a lot over a longer period.
Bottom Line
Of course, in the end, it´s the mindset that you need to change. You need to step up and say enough is enough...I ain´t paying for this sh!t anymore. Then get rid of your ex-wife and start getting rid of that debt.
Once that mindset is changed diving into crypto will help in understanding finances and how you can make the most of what you got....or have not got (yet). At least that is what it did for me.
Let me know your story as I am very curious to know how your wealth is doing today.
Post Scriptum:
Platforms where I Earn Crypto for my Content (Affiliate Links):
Torum - https://www.torum.com/?referral_code=bitcoinbaby
NoiseCash - https://noise.cash/u/BitcoinBaby
ReadCash - https://read.cash/r/BitcoinBaby
Hive - https://hiveonboard.com/?ref=whywhy
Peaked - https://peakd.com/register?ref=whywhy
Publish0x - https://www.publish0x.com?a=l9avg4xnbG
Exchanges where I trade Crypto (Affiliate Links):
BitVavo Exchange- European. Higher trading fees (0.25 %) & Great Customer Service - https://bitvavo.com/?a=C21A94C2FD
Kucoin Exchange - Hong Kong. Okay, trading fees (0.1 %) & Contains a lot of low cap gems. Customer Service takes time - https://www.kucoin.com/ucenter/signup?rcode=rJ821BX&lang=en_US&utm_source=friendInvite
Bitmart - Global (USA allowed) Low, trading fees if you use BMX (0.025 %) & Contains a wide variety of coins - https://www.bitmart.com/en?r=7XFCVy
Places where I do Liquidity Mining and Staking
Cake DeFi. Here you have to invest $50 dollars and you get 30 dollars for free. You can withdraw your 50 dollars at any time or use them for Liquidity Mining, Staking, or lending to earn more DFI rewards. The 30 dollars is locked for 6 months but earning you interest for the 6 months. https://app.cakedefi.com/?ref=197670
Celsius. Celsius Network provides a platform of curated services with fair interest, zero fees, and lightning-quick transactions. You can store your crypto and get rewards or lend crypto with low fees. Celsius has been around since 2017 and stated to always have the best interest of the community in mind. My experience so far has been good although I will not stake all my crypto with them...NYKNYC
https://celsiusnetwork.app.link/1046126043
Disclaimer
I do not have any connection with any company I am writing about. I am not being paid to write this article.
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