before you proceed with this article, do note that this caters mainly to readers who want to achieve financial freedom, achieve f.u. money, retire early (or not), being a minimalist, a frugalist, a money hoarder, a crazy financial retail investor, etc. why? because living a "normal" life is too boring for me.
yup. i live with my parents. rent-free.
this gives me a massive edge on any debts i owe, saving boat loads of money, have a much larger liquid investing buying power for any assets, f.u. money or buying whatever i want.
but my goal is to simply reach financial freedom through the means of saving all this money by investing heavily into crypto and/or stocks.
lets do a breakdown on how much money i save and investing looks like:
my rent cost (for a 600 sqft apartment): $1124/month = $13,488/year
the average new yorker rent cost (in my area specifically): $1658/month = $19,896/year (for a 643 sqft apartment)
putting the $13,488/year savings all in on bitcoin when the rate was $10,000/btc at once.
today in march 2021, the amount invested would be a total of $62,044.80 at the rate of $56,000/btc which is a 460%+ gain in profits.
this is essentially what happened to me, but the example above is just a simplification version of the actual situation since the rates, fees, timing, and amount invested is far too complicated to keep track of. but nonetheless, the gains are incredible!
and this is why i live with my parents for the time being.
ill be able to reach financial freedom far quicker than the average joe. i could cash out and throw my gains into safe blue-chip dividend stocks that'll give me guaranteed steady income every month or so or i could just simply hodl bitcoin until it reaches $1 million/btc and make bigger moves then. sky is not the limit.
regardless, my conviction for bitcoin is very strong. i believe in it long-term, which is why i still continue to dollar cost average into bitcoin whenever possible. your conviction could be in bch, eth, ltc, or even stocks, etc. to each to their own.
your conviction to any investment is one of the most important factors. understand the fundamentals of what you're investing into, why you are investing into it and enjoy the gains. then use those gains to put into safe producing dividends when you feel you should cash out. always plan out accordingly.
bitcoin isn't my only invested asset, but for the sake of this article, we'll only keep it to bitcoin for simplification.
and saving money on rent all year is also not the only thing i save lots of money on. just imagine me saving on not having a car, not having to buy gas, not having to travel to work, not having kids, not have a spouse. this is primarily based on my environment and conditions.
disclaimer: take this article with a grain of salt, im not a financial advisor, nor am i here to brag about my wins. but these are the fortunate things that im dealt with. and i only hope that you can gain inspiration from this article.
while your situation is different than mine, its all about working with what you got and making the best of it.
its about being creative and how to optimize your situation to save all the money possible. you must be adaptable to your environment. working smarter than working harder, but that's only if you're like me who wants to reach financial freedom in the shortest amount of time possible. everyone's goals are different, so you may or may not resonate with my article.
i plan on reaching financial freedom in no more than 3 years. where i generate dividend income without having to do anything. as long as my supplemental expenses are covered by dividends, i will then consider myself financially free.
so when people say "a penny saved is just a penny saved", i would disagree with this sentiment and now you see why.
And what do you do if BTC price collapses and doesn't recover, which is very likely?